The fishing industry of independent Ukraine is a closed book. Statesmen are not eager to talk about the successes in this sphere. Meanwhile, fishermen and honest fishing inspectors reveal that the Ukrainian water reservoirs are regularly devastated by poachers, who apply cruel methods of fishing: electric rods, “spiders,” or simply dynamite. Recently a new person took over the relevant government institution. So, should any changes be expected? Below the head of the State Committee for Fisheries of Ukraine (Derzhkomrybhosp) Viktor DRONYK answers this and other questions of The Day.
What was the fishing industry in Ukraine like when you headed the Derzhkomrybhosp?
“When I came to work in the committee I knew that the situation was bad. But I was surprised to see how bad it was. Over these years a redistribution of the fish industry has taken place. But it will be possible to speak in detail about the real state of affairs in the fishing industry only after the Controlling and Auditing Department finishes its ongoing work.
“In my opinion, the situation can be stabilized once the legislative base is drastically changed. This is namely the reason why the committee is completing the project ‘The Concepts of the General State Program on the Development of Ukraine’s Fish Industry for the Period until 2015.’ As a further step the management structure should be reinforced — currently it is unbalanced at a 70 percent level. Thirdly, we must fight against corruption. According to the results of previous inspections, half of the managing staff of the Derzhkomrybhosp has been renewed: out of 33 employees, 18 have been fired.”
What is the situation with fishing in inland waters and import?
“As seven fishing vessels have been pulled out of the Ukrainian oceanic trade (four of them were sold), Ukrainian fishing companies have caught 15 percent less fish, i.e., 151,000 tons, in the first nine months of 2010. The amount of fish captured in the maritime economic zones of other states totals 91,000 tons, and in the Azov-Black Sea basin — 45,000 tons (80 percent of the fish was caught in the Sea of Azov). The amount of fish caught in inland reservoirs has dropped by nine percent to 15,000 tons. This was caused by a whole range of problems: lack of money to carry out amelioration works, stocking and selling of aquaculture products... It is still problematic to get a loan for buying fish food and equipment. The banks refuse to give loans to fishing and fish-farming companies, even on mortgage of the future catch.
“On the whole, as statistics show, nearly 600,000 tons of fish are sold during a year, with 60 percent of them coming from import. In 2010 the import of fish grew by five percent, now it makes up 65 percent of the market. The rest is made up of fish from inland reservoirs. However, the unofficial data indicates that the correlation between the imported and Ukrainian fish is 50 to 50 percent. So, 15 percent of the domestic fishing market remains in the shadows. The reason for this is corruption. Thus, entrepreneurs who have a yearly quota of 20 tons of fish in practice catch twice as much in inland reservoirs, colluding with fishing inspectors, ecologists, and security agencies for additional payments. To legalize the fishing market, the committee will submit a draft law on increase of fees for catching fish by two or three times. We want the money made this way not go to the budget, as it is done at present. Instead, it will be used for the renewal of fish stocks and selective programs in this branch.”
What will guarantee that the fishermen will pay higher fees for catching fish, not simply continue to catch it illegally?
“The guarantee will be a change in the mechanism of quota distribution for catching fish. At the moment the committee is waiting for the results of the Ukrainian-Russian committee on using water resources in the Sea of Azov, which continues to be used by both states. Currently Russia owns 45 percent of all quotas for catching fish in this sea, whereas we own 55 percent. We want to increase our share of allowances in the Sea of Azov by five percent. After the work of this commission is over (towards the end of November) the distribution of quotas for 2011 will start. As the head of the Derzhkomrybhosp I simply won’t consider the applications from the users of water resources who apply for a quota of two or three tons a year. To get the quotas the company will have to meet certain demands: to have a fleet, a means of catching the fish, a base to process the fish (refrigerators, equipment for processing, freezing, conserving and drying fish), and not be listed among the violators of law in 2010.”
The new rules will be advantageous for the big players on the market. What should small businesses do? This looks like a monopolization of the market.
“Smaller fishing companies should unite in order to stay on the market and legally work in inland reservoirs. The merger of fishing enterprises will make it easy for the state to control the usage of water resources and will restrict uncontrolled fishing.”
How are you going to improve the work of the fishing inspectorates and make them stop earning money on fish?
“We will somewhat increase the wages: hopefully by 30-40 percent in 2011, though it should be increased four or five times, because at the moment a fishing inspector earns 1,500 hryvnias a month.
“Besides, an intradepartmental department is being established within the Derzhkomrybhosp (an internal security service), which will reveal the violations of fishing inspectorates and will take control over the actions of the employees of the local fishing security bodies. Already in 2011 this department will start to fight the corruption together with security bodies (the SBU, MVS, and the prosecutor’s office).”
You mentioned the fact that Ukrainian fishing enterprises now catch less fish because the fleet was reduced. How many units of oceanic fleet does Ukraine possess?
“In 1991 there were 230 units of fishing fleet, with 41 being oceanic vessels. At the moment the state owns 140 fishing vessels, with seven of them being oceanic. But de jure these boats are owned by foreign entrepreneurs, because they became creditors of these vessels earlier. The loans have never been returned. Overall, the loans amount to 10 million dollars. At the moment these Ukrainian boats catch fish based on quotas given to other countries. The money paid for their rent (approximately 35,000 or 40,000 dollars for one vessel a month) automatically goes to the creditors who are at the same time the leaseholders of those vessels. Hence, Ukraine does not get a penny.”
Can the vessels be returned to the state’s ownership?
“To return seven oceanic vessels, one should be sold. Then the rent should be increased two times, to 100,000 dollars per month, because at the moment the leaseholders pay kopeks for using the oceanic vessels.”
But this money is not enough to restore the fleet. Does the Derzhkomrybhosp consider the option of restoring the fishing and oceanic fleet under the conditions of state-private partnership, or by the way of taking loans?
“It is too early to speak about bank loans: nobody wants to take them. But at the moment Russian investors are ready to put money in building the Ukrainian fishing fleet with a government guarantee.”
How many units will appear owing to Russian investments?
“Russian investments, if the Ukrainian side will provide the technical skills, will make it possible to build 5-10 vessels of average size in a matter of one year only. On average, the construction of one vessel costs 500,000 dollars. It lasts for one or two years. If the vessel is oceanic, the construction goes up as high as 10-20 million dollars.”
How do you assess Ukraine’s chances to return to oceanic waters?
At the moment Ukraine practically does not have any quotas for fishing in international waters. We own only the quota for catching 240 tons shrimps and 50-70 tons perch. Besides, Ukraine has million-worth debts for being member of the international fishing organizations, which distribute the quotas. At the moment I hear suggestions to leave these organizations. I am categorically against that, because in this case the country risks losing its place on the fishing map of the world.”
