2nd stage of Russia’s investment quota program approved by Duma

On December 20, 2022, at the plenary session of the State Duma, the law on the second stage of investment quotas and crab auctions with investment obligations was adopted in the second and third readings. Amendments are being made to the federal law "On Fisheries and Conservation of Aquatic Biological Resources".

According to Russia's Federal Agency for Fisheries, the document is among the priority government bills.

The draft law is aimed at further updating the production capacities of the Russian fisheries complex. More specifically, it is expected to make the following effect: higher catches thanks to the development of the resources of the World Ocean, state-of-the-art fish processing, new jobs, stronger socio-economic welfare of the regions, moving away from the raw material orientation of exports, market saturation with affordable and high-quality fish products.

The law lays down the main mechanisms for stimulating investments into the industry as worked out by the Federal Agency for Fisheries and the Ministry of Agriculture of Russia, takes into account most of the proposals of senators, deputies, governors of coastal regions and representatives of the fishing community.

In general, 44% of the volume of historical quotas is allocated for investment quotas, 20% for the first stage (Far Eastern and Northern basins), 4% additionally for the first stage of the Far Eastern Basin and 20% for the second stage of the Far Eastern Basin.

The norm is included, according to which the investment quota of the second stage can only be obtained by a user registered in a coastal subject of the Russian Federation. Previously, registration was mandatory only for crab quotas. Thus, it is planned to increase tax revenues to regional budgets.

To protect the interests of small and medium—sized enterprises in the fishery, it is proposed to apply an increasing coefficient to the "historical" quota - 1.2.

In addition, it is planned to distribute 50% of the total allowable catch of crabs at auctions with investment obligations.

As noted in the document, quotas will be allocated mainly for the implementation of projects for the construction of facilities on the territory of the Russian Federation in the form of fishing vessels and infrastructure facilities in rural areas of coastal subjects of the Russian Federation.

The law will be sent for consents to the Federation Council and then to the President of Russia for signature.

The amendments should come into force from 2023.

Source: Federal Agency for Fisheries