China’s Pacific Andes Ordered to Sell Russian Fishing Assets

MOSCOW, November 28 (RIA Novosti) – Russia’s foreign investment government commission has ordered China’s Pacific Andes fishing company to sell the Russian fishing assets it acquired in violation of the law, Federal Anti-Monopoly Service head Igor Artemyev said on Wednesday.

“We have made a decision today that the Chinese side must have permission if it wants to continue operations in the Far East. As there is no permission at present, the Chinese side should leave and sell its assets to Russian companies,” Artemyev said after a meeting of the government commission on foreign investment, where he holds the post of secretary.

Pacific Andes broke the law and the Russian government did not give it permission to purchase strategic assets of the Russian fishing fleet, he said.

Under Russian legislation, the fisheries are strategic sectors and foreign investment in the industry is allowed only with the approval of the government commission for control of foreign investment.

Pacific Andes gained control of Russian fishing assets through management agreements rather than share ownership where Russian shareholders were only nominal owners of quotas for fish catches while the Chinese firm was the main beneficiary, Artemyev said.

Foreign companies from Japan and Korea were also found to have illegally acquired the shares of Russian fishing companies and similar measures will be taken against them, the FAS head said.

At the same time, the government’s foreign investment commission offered Pacific Andes to consider joining Russian fish processing companies on the Russian shore.

“We would not like them [Pacific Andes] to leave completely. We would like them to work in adjacent areas,” he said.

 

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