Ministry of Economic Development failing to stop crab quota auction draft
Russia’s Ministry of Economic Development has produced a negative opinion on the draft law on auctioning 50% quotas for crab capture due to irregularities, potential budget losses and risks for the industry.
The Ministry says the draft law developers did not conduct a comprehensive analysis of the current situation and possible alternative ways of problem solution. Withdrawal of one half of crab capture quotas from the current historic holders would lead to suspension of a number of newbuilding projects totally worth 7 billion RUR (94.6 million Euro).
Besides, the Ministry has found out a number of provisions that impose excessive encumbrances, barriers and restrictions for the industrials.
However, according to the latest reports, the Cabinet of Ministers has decided in favour of the Draft and now it is ready for submission to the Duma (Lower House of Parliament). The government hopes to generate some RUR82 billion from the crab quota auctions, improve “transparency and competition” in the highly lucrative sector.
Meanwhile, the deadline for auctions of quotas for crab capture in 2020 has been postponed from July 1, 2019 to October 1, 2019.