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The initial cost of crab auctions is three times higher than in 2019

The analytical group of the All-Russian Association of Fishery Enterprises, Entrepreneurs and Exporters (VARPE) has calculated the cost of all 37 lots at the upcoming auctions for the sale of 48% of quotas for the production of crabs in Russia. According to experts, taken from already approved government decrees, the starting price is almost 3 times higher than the cost of the 2019 auctions.

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“The total initial cost of the lots will be ₽338.82 billion (USD 4133.57 M) – this is almost 3 times more than was planned for the first crab auctions in 2019 (₽120.81 billion (USD 1473.87 M)), and almost 2.5 times more than the state's actual income from these auctions (₽142.3 billion (USD 1.74 B)). The value of the lots ranges from ₽2.624 billion (USD 32M) to ₽13.045 billion (USD 159.15). The most expensive of them include shares of quotas for the extraction of the most premium type of crab - Kamchatka. Their cost starts from ₽7.672 billion,” the report says.

Analysts note that the increase in prices for lots compared to 2019 is associated with an adjustment in the market value of crabs and an increase in the investment liability ratio from 0.25 to 0.6. VARPE President German Zverev noted that crab quotas are considered almost the most profitable and reliable of all assets offered on the market. In his opinion, the government expects to receive an increase in the budget from the sale of quotas, comparable to the expected revenue from the windfall tax (tax on excess profit - ed. note). “However, “crab fever” is just an example of “irrational optimism.” Russia's leading position in the world crab market is seriously threatened by three factors: the risk of a reduction in production volumes, the collapse of markets and the increased financial instability of crab fishers,” Zverev’s opinion is quoted by the VARPE Telegram channel.

Earlier, RBC Primorye reported that the legislative regulation of crab investment quotas took place in two stages. The first one began in 2019: it provided for the allocation of 50% of the volumes allowed for development in certain areas. Most of the auctions for the first stage took place in the same 2019. The second stage was introduced into the federal law in 2022 - this is another 48% of the volume.

Photo: Stockfile FIS

At the end of June, the government approved a list of facilities to be built by the winners of crab auctions. If earlier, after the first stage of investment quotas, fishermen could only invest in fishing vessels, now it is possible to build capital facilities on land - large and small logistics complexes. Most investment objects are tied to the Far East.

Source: rbc.ru (Traslated from the original in Russian)

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