FIRST AGREEMENT TO EXPORT FISH VIA COMMODITY EXCHANGE AND AUCTION TO BE SIGNED AT EASTERN ECONOMIC FORUM
12 July 2016
A preliminary broker agreement for the Far Eastern Fish Auction House has been concluded with the Chinese Donggang Zhunzen Group, RIA PrimaMedia reports.
The document was signed in Vladivostok in the presence of the vice governors of Primorsky Territory and Liaoning Province. The final agreement will be signed at the Eastern Economic Forum (EEF), however there will still be further matters to deal with, such as securing pre-payments from foreign buyers and delivering fish products to end consumers abroad.
The use of commodity exchange and auction trade platforms to sell Russian fish products and aquatic bioresources, including for export, was made possible by the amendment to the federal law ‘On organised trading’ introduced by President Vladimir Putin. This act allows foreign entities to take part in commodity exchange transactions.
The open bidding format provides a guarantee for settlements between Russian and foreign partners, allows products to be sold abroad, and eliminates the cost to fisherman of storing produce abroad. It also results in better prices. Foreign buyers are able to plan the work of their companies since they have a guaranteed supply of high-quality raw materials.
South Korean businesses have also expressed an interest in accessing Russian fish auction and commodity exchange markets. Korean buyers are interested in Russian fish products that have gone through preliminary processing, increasing the added value for domestic producers.