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PRIMORSKY KRAI
Where Russia meets Asia





Mr. Novikov Fedor T.

Interview with Mr. Novikov Fedor T.
First Vice-governor of the
Primorsky Krai Territory Administration



Vladivostok, March 14th, 2003

Mr. Novikov Fedor T.
First Vice-governor of the
Primorsky Krai Territory Administration
 
The fishing sector in Russia changed a lot last month. As the former chairman of the Committee for Fishery in Primorsky Krai, could you give us your personal point of view on the fishing sector and the future of the sector?

From 1993 to 1998 the fishing production was over 1.5 million tons, we had about 56 fishing companies, but since 1998, due to the decrease in the fishing production, at the moment we fish about 500 000 tons. Today we have more than 276 companies registered in the region, 100 % private businesses, only 2 companies have more than 5 000 employees. Approximately 10 companies have from 1 000 to 5 000 employees, all the rest companies have from about 200 to 400 employees. We have new companies with less than 10 people. I would like to highlight that the year 2002 was a very positive year, a year of stabilization in the fishing sector. In the year 2002 fish quotas fell down by 38%. As for the fish volume and profit, we fell only by 9%.

The financial result was better than we had expected. It is connected with quota distribution and deeper fish processing. Today we have 435 vessels that are distributed among 100 companies, about 40 000 employees, we have about 5 very heavy boats of 30 000 tons, and many other vessels of 15 000 tons. Only 2 or 3 companies are bankrupt at the moment, we are following the situation and try to do our best to help these companies. The process of breaking big companies into a lot of small ones is over, and I think that we will soon see the contrary process: small companies will be united into large companies. Today we are changing our techniques, we are trying to work much closer with the fishing companies, with reproducing marine resources, and producing marine cultures. We have about 26 companies, which grow sea kale, we hope to increase this production next year. We are growing mussels and urchin. We have good projects to produce other kinds of sea products. In April we are waiting for a French delegation, maybe for future collaboration in fish producing and processing. Today we are trying to expand in the international market; we try to find new international collaboration. We used to work only with China and Japan, today we are also working with many others countries such as France, USA, Australia and others.

The administration of Primorye is today looking to new plans and projects. Could you describe more in details this information?

We have a few directions of projects and plans. The first, as I already said before, is about the diversification of the fishing companies, i.e. from small companies to large ones. Then we are working to develop our seafood and increase the production and the different products, we are also working on different scientific programs, regarding salmons breeding and trying to develop the production of this fish in Russia, one of our main projects is also connected with deep fishing processing. Today we have 36 fish processing plants, we are planning to reduce these companies to 10 companies. As we do not have enough financial resources we are planning to work on the quality of the products in the region.
The technical condition of many fishing ships is unsatisfactory; and has reached 60 percent deterioration. How is the Administration working to develop this issue?

As for the ship deterioration, a normal ship can work without any problems more than 30 years, but inside the ship is very different, that is why we have to change many things every 5-8 years in order to meet our customers' requirements. We have the most advance and modern fish processing equipment in the world. Our equipment is made in Norway, Germany, USA but not in China. If you go to any fish shop in the city, you will see that we use all kinds of containers, produce all kinds of fish production, we may say that we have the same level as in Europe.

We have already talked about plans, figures, production, but we didn't talk about the main customers of the fish production of Primorsky Krai. What are the main destinations?

61% of the fish production is meant for the domestic market, the rest is going outside the country. Our main customers are China, Japan, Korea, Singapore, North America, and Europe. These are basically the main routes of export for the fish products of the region.

You were Chairman of the Committee Fishery for Primorky Krai. Today you are the first Vice-Governor of the Krai Administration. Could you tell our readers about your professional background?

I was born on Sakhalin, graduated from the Far East Fishery University in 1974 as Engineer Navigator. Until 1983 I worked for one of the biggest fish processing plants in the country, since 1983 I took different positions in the Communist authorities. From 1990 to 1993 I was Deputy Mayor of the city of Vladivostok, from 1993 to 2000 I was Vice-governor, and for a small period of time I worked as General Director of a fishing company in the region. Since last May year I have been working in this Administration. I was trained in Japan but I also was studying twice in the States. I have visited all the countries around the world, of course all countries involved in fishing business.

As my last question I would like to ask about your biggest achievement with one year in the Administration of Primorsky Krai?

I think that we managed to impose the fishery and due to this many other regions now respect Primorsky Krai. I managed to take back all the respect positions we used to have before. One of the biggest achievements was to have President Putin in the region interested a lot in the fishing sector. He said that now he understood how much we had done to develop the region to a very high level.




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