Russian government approved the resolution on marine and fishing investments

Fishing RussiaThe Government of the Russian Federation approved resolutions on fisheries investment quotas. The head of the government, Dmitry Medvedev, signed decrees No 632 and No 633 (May 25, 2017), regulating the procedure for selecting investment projects and requirements for investment objects. These by-laws determine the requirements for investment objects and investment projects in the field of fisheries and the procedure for calculating the implementation of investment projects. In addition, were adopted the rules for preparing and concluding an agreement on securing and granting a quota share for investment purposes.

In accordance with the law, the objects of investment include fishing fleet vessels built at Russian shipyards and fish processing enterprises built in Russia within the framework.

The requirements established that when building ships, the cost of goods, works or services purchased in Russia during their construction and commissioning should be at least 30% of the total cost of building a ship, when applying for a quota for investment purposes to 2020, and not less than 40% of the cost of building a vessel, when submitting such an application after 2020.

If it is a question of the coastal enterprises, the investment project should be realized on the territory of Russia. At the same time, the enterprise should be built in the coastal region of the Federation, the territory of which is adjacent to the corresponding fishery basin, in which quotas for investment purposes are fixed and granted.

To ensure the implementation of the investment project, the applicant must provide, as security, a bank guarantee or the right to extract aquatic biological resources.

The rules establish the procedure for preparing and concluding an agreement with legal entities or individual entrepreneurs (hereinafter referred to as the investor), which includes determining the timing and sequence of actions of the Fishery and Investor.

In accordance with the approximate form of the contract, Rosrybolovstvo assigns to the investor the right to extract certain types of aquatic bioresources in certain areas of their catch with an indication of the share of the quota of extraction of aquatic biological resources for the period of the implementation of the investment project for the construction of the ship or enterprise.

Powers for monitoring the implementation of investment projects for the construction of ships and enterprises are assigned to the Ministry of Industry and Trade of Russia.

Federal Law No 349 of July 3, 2016 amended Federal Law No. 166 of December 20, 2004, “On Fisheries and the Conservation of Aquatic Biological Resources”, with a view to improving the allocation of quotas for the extraction of aquatic biological resources. In particular, a new type of quota – the quota of catching of aquatic biological resources for investment purposes in the field of fishing for industrial and coastal fishing has been introduced.

At the same time it was established that the requirements for investment objects and investment projects, as well as the procedure for preparing and concluding an agreement on granting quotas for investment purposes are approved by the Russian government.