FAS tightens control over catching fish by companies with foreign participation

According to Deputy Head of FAS, Andrey Tsyganov, the first judicial cases on forced termination of fishing rights will send a clear message to the market – the law should be observed

Moscow Arbitration Court held a preliminary hearing on a case against Federal Fishery Agency (Rosrybolovstvo) that had prevented participation “Atlantika” Ltd. in tenders for quotas to harvest aquatic biological resources.

As earlier established by FAS, brought in the proceedings as a third party, at the time of acquiring the right for harvesting aquatic biological resources “Atlantika” had been under control of a foreign investor, which was contrary to the law. This information was forwarded to Rosrybolovstvo.

“We must react with maximum efficiency to violations of Russian law on foreign investments in the fishing sector, which supplies raw materials to domestic food industry. The first cases on forced termination of fishing rights will send a clear message to the market – the law should be observed”, emphasized Deputy Head of FAS, Andrey Tsyganov.

“Atlantika” simultaneously filed a lawsuit against FAS decision. A preliminary hearing is scheduled on 5 June.

According to Head of FAS Department for Control over Foreign Investments, Andrey Yunak, foreign investors may acquire shares of Russian fishing companies but this right should be exercised in line with the law – after preliminary approvals. He pointed out: “If an investor becomes crafty and attempts to mask one’s control, it’s a signal for us to act. Today reputational risks do not yet play such a big role in Russia as abroad, where nobody will deal with an investor who violates the law. I have no doubt, however, that with time it will change”.