August 26, 2008

Russia's government is now planning to make joint stock companies out of the state-owned fish farms of the country, Russia's First Vice Premier Viktor Zubkov announced Friday (August 22, 2008). 

According to Zubkov, the new status will enable the farms to widen their business and scope of operations such as raising fish to the grown-up state for ex-farm sale and processing delivery, in addition to executing the government's orders.

However, the state will retain majority ownership in these joint stock companies, and private business would account for no more than 49 percent of the fish farms.

Making a joint-stock company out of a federal enterprise will be carried out in a few stages, starting from appraisal, audit and legal support to splitting off the majority stakes for the government.

The process will be set into motion early 2009, said Alexander Saveliev from Russian Federal Fishery Agency Rosrybolovstvo.

With ownership still belonging to the state, Russia would find it hard to find takers for its fish farms, experts said.

The Russian market produces 60,000 tonnes of fish products a year worth roughly 3.5 billion ruble (US$142.95 million ).