FAF eventually succeeds in selling last lot of deep-sea crab quota shares

Federal Agency for Fishery (FAF) has eventually succeeded in selling the last lot of deep-sea crab quota shares at a seventh investment-linked auction taking place on May 31st with the previous six attempts ending in failure for lack of bidders, reports Megafishnet.com.

The lot put up for auction included the quota shares for catching red snow crab in the Primorye subzone and the West Sakhalin subzone as well as triangle tanner crab in the East Sakhalin and North Okhotsk subzones, each share standing at 16.666% of the TAC. The starting share price was reduced by 10% compared to the previous unsuccessful auction and amounted to 211.8 million rubles (ca. $2.9 million).

The Corvette and Phoenix companies participated in the auction. The winner was the Kaliningrad-based company "Corvette", which offered the highest price of almost 392 million rubles (ca. $5.4 million).

The highest bid from Sakhalin-based "Phoenix" was recorded at 381.3 million rubles, while "Corvette" offered to pay exactly 391.9 million rubles.

According to the rules, the winner of this investment-linked auction is obliged to build a crabber with a length of more than 50 m at a Russian shipyard.

For the first time, lots for the capture of deep-sea crabs were reportedly put up for auction in the autumn of 2019. Then the price for each of the six lots (16.6% of the quota shares) was recorded at 785 million rubles.

However, in 2020, only four lots were sold to the only auction participant CJSC "Tefida" based in Vladivostok-led Primorye province.  The contract price amounted to 290.5 million rubles for each lot.

Later, another lot was bought for 261.5 million rubles by the Khabarovsk enterprise "Amurrybprom" LLC.