FAS: OMISSIONS BY ROSRYBOLOVSTVO DEPRIVED FISHING COMPANIES OF POSSIBILITY TO CLAIM CATCH OF SARDINES (IVASI), MACKEREL AND ANCHOVIES
Only the first few applicants obtain a catch permit
At the end of December, FAS Commission finalized a case against the Federal Fishery Agency (Rosrybolovstvo) upon signs of restricting competition (Part 1 Article 15 of the Federal Law “On Protection of Competition”) in the course of Russian users obtaining permits for harvesting aquatic biological resources (ABR) in Japan.
Earlier FAS received statements from Russian fishing companies intended to do fishing in the exclusive economic zone (EEEZ) of Japan in 2017.
As it was established, Rosrybolovstvo received 5 applications for fishing ivasi, mackerel and anchovies in the exclusive economic zone (EEEZ) of Japan. Of which, the agency promptly considered three applications and sent to the representative office of Rosrybolovstvo in Japan, while the two applications of other companies were transferred to the representative office after 14 calendar days.
Thus, due to absence of the deadline for collecting applications, the key factor for obtaining permits to catch the above ABR in Japan in 2017 was the order* of sending applications to Japan.
Rosrybolovstvo was issued a warning to eliminate a possible violation of the antimonopoly law. The measures undertaken by the agency, however, were assessed as unsatisfactory because the possibilities to choose companies on the competitive basis were not created. Due to the failure to execute the FAS warning, Rosrybolovstvo opened a case for violating the antimonopoly law.
Deputy Head of FAS Rachik Petrosyan commented: “Transparent selection conditions and creating equal opportunities for Russian fishing companies for obtaining the right of catching, particularly, as in the case in question, in the exclusive economic zone of Japan, is a necessary condition of efficient development of bona fide fishing market”.
Upon investigating the case, the antimonopoly body issued an order to eliminate the exposed violations.
Background:
*The total volume of catch of ivasi, mackerel and anchovies was allocated between three companies that specified the desirable catch amount: “Luntos” Fishing Company” Ltd. (10 000 tons), “Sofko” Ltd. (2 550 tons) and “Tralflot” JSC (11 100 tons), which were the first to file applications to Japan Ministry of Agriculture, Fishing and Forestry. Japan refused to allocate quotas on applications that were submitted later since the amount offered by Japan was already allocated between the first three applications.
At the 33rd session of Russian-Japanese Fishery Commission, the Parties reached arrangements to give Russian fishing vessels 23 685.9 tons quotas for catching ivasi, mackerel and anchovies in the 200-mile zone adjacent to Japanese coast in the north-western part of the Pacific ocean in 2017.