Russia's fishery industry faces huge debts and a surge in loss-making companies

Published 2024년 12월 13일

Tridge summary

The Russian aquaculture industry is grappling with a severe financial crisis, with a debt of approximately $1 trillion, equivalent to its annual turnover. Over 40% of companies are operating at a loss, and profits are expected to continue to fall due to state support programs that have increased debt and international sanctions that have hindered exports. The cod fishing industry in particular is struggling with a declining profit margin and an increasing number of loss-making enterprises.

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Original content

According to Russian media reports, the Russian aquaculture industry is currently facing an increasingly severe financial crisis. The industry's accumulated debt is as high as about 1 trillion US dollars (about 9.5 billion euros or 10 billion US dollars), which is almost equal to its annual turnover. At the same time, more than 40% of aquaculture companies are operating at a loss. This situation was pointed out by German Zverev, president of the Russian Federation of Fisheries (VARPE). Zverev disclosed this at an industry conference on December 5 and was quoted by Interfax. Zverev pointed out that the industry's total profits in 2024 fell 26% year-on-year in the eight months ending in August to only 60 billion rubles (about 568 million euros or 600 million US dollars). It is expected that by the full year of 2025, profits will fall further to 76 billion rubles (about 719 million euros or 760 million US dollars). There are multiple reasons behind this deterioration. On the one ...

Source: Foodmate