Russian Prime Minister Vladimir Putin instructed financiers to write off fines and penalties levied against in-debt fishing companies.
The federally owned fishing fleet will receive new vessels, but the fishing community may have a more mixed reaction to the prime minister's overhaul on industry debt. Yesterday, Prime Minister Vladimir Putin instructed several fishing enterprises to formalise the transfer of all vessels into federal ownership, effectively foreclosing and assuming the debt to German banks upon which these ships were constructed with federal guarantees. The matter concerns 27 trawlers that will now fish in Russia's Far East in the waters of the Bering Sea and the Sea of Okhotsk.
Putin reminded the companies in question that the issue had been dragging on since 1992. Debts to the German banks have been settled, but the fishing industry is still indebted to the Finance Ministry and Vnesheconombank.
To settle the companies' problems, the prime minister demanded that the vessels be passed into federal ownership and the crews "given an opportunity to start work immediately." Later, the State Committee for Fishery may allow the companies to charter vessels or buy them back if they remain debt-free. Putin said that the companies had already repaid 85% - 90%.
In an additional conciliatory move, the prime minister demanded that any remaining fines and penalties against the companies be written off and that an easy-term loan be issued on the remaining debt for as many years as necessary for their balance books to return to normal.
Larisa Viktorova