Financial Crisis Clutches The Fishing Industry

PETROPAVLOVSK-KAMCHATSKIY. 25 November. VOSTOK-MEDIA. The financial crisis has affected all sectors of the fishing industry and related branches. Nowadays, factories of all sectors are in need of the government support which has been discussed for over 1.5 years by industrial and government leaders. The fishing factories and firms are facing a credit problem. Banks refuse to accept vessel bails and raise interest rates. Industries are cut off the turnover means.
Majority of sector analysts says that the crisis has not reached a zenith yet. It will come up in the end of spring. At this period the winter and spring trading is being finished. Having faced the problem with consumption, fleets will have to handle the next trading provided the market is worse off.
Specialist say unanimously the fishing problem is getting worse because of the lack of freezing equipment after the decree #486 about obligatory transportation of fish to the sea ports.
Without investment flow to modernization of the port infrastructure and construction of additional refrigerator complexes fishers will face losses and the Russian ports may go bankrupt given that there are serious logistical problems, such as lack and bad technical condition of the refrigerator carriages and high transportation taxes.
The Russian government has tools to control the situation. These are the overall agricultural tax imposed on the fishing industry. This tax could be added to Putin’s plan on legislation amendments to back the real sector of economy and support economic growth of Russia.