Recently, the federal government passed Decree No. 1482 and amended Decree No. 1538 to reduce export tariffs on some seafood products, including haddock fillets, frozen Pacific sardines, canned and preserved mollusks, which will take effect on November 10.
Last year, Russia decided to impose export taxes on export commodities, including seafood. The specific tax rate is linked to the ruble-dollar exchange rate and adjusted monthly according to the exchange rate. The tax rate from November 1 to November 30 is 7%.
This policy has been strongly opposed by the Russian fishing industry. The Russian Fishery Shipowners Association (FSA), the All-Russian Fisheries Association (VARPE), the Pollock Fishing Association (PCA) and the Crab Fishing Association (CCA) wrote to the Russian Ministry of Agriculture and both houses of parliament, requesting export tax reductions.
The recently passed Decree No. 1482 aims to exempt haddock fillets from export taxes, which may benefit the export of pollock products. VARPE pointed out that Russia has plans to significantly increase pollock exports to emerging markets, It is expected that the export value will increase to $8.85 billion by 2030, while the export to EU member states will drop from $779 million in 2023 to $570 million in 2030, and the market share will drop from 14.9% to 6.5%.
In October, the price of Russian 25cm+ headless and gutted (H&G) pollock (CFR China) was $1,340-$1,350/ton, up 30% from a few months ago.
FSA statistics show that from January to September this year, the total export volume of Russian seafood fell by 17%, and the export value fell by 14% year-on-year. Russia's seafood export tax has restricted the development of the industry and has not promoted the growth of domestic sales. If the export tax continues to be levied next year, it will cause economic losses of up to 45 billion rubles (464 million US dollars) to the fishery industry, reducing the overall profit margin to less than 2%. Seafood companies may delay investment in new ships and processing plants due to the inability to repay debts, which will ultimately affect the government's proposed quota investment plan.