Voluntary Report - public distribution

**Date:** 10/24/2005

**GAIN Report Number:** RS5073

RS5073

**Russian Federation**

**Fishery Products**

**Resolution Announced Protecting Sturgeon**

**2005**

**Approved by:**

![](media/image1.wmf)Eric Wenberg

American Embassy, Moscow

**Prepared by:**

Erik Hansen and Marina Muran

**Report Highlights:**

The Russian government recently passed Resolution 584 regarding measures
to ensure fulfillment of its obligations under the Convention on
International Trade in Endangered Species (CITES) regarding sturgeon
species. This resolution was passed in response to CITES concerns about
the rapidly declining world sturgeon population, especially in the
Caspian Basin, and reflects an attempt by the Russian government to
re-establish a monopoly over sturgeon fishing and caviar sales.
Exporters of sturgeon products and caviar to Russia should be aware that
these regulations create an import license regime for caviar that may
add an additional step or process to Russia\'s import procedures.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Moscow \[RS1\]

\[RS\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Text of Resolution 584 3](#text-of-resolution-584)

[Comments 4](#comments)

# Executive Summary

On September 26, 2005, the Russian government passed Resolution #584
with measures to ensure fulfillment of its obligations under the
Convention on International Trade in Endangered Species (CITES)
regarding sturgeon species. This resolution is an attempt to
re-establish a monopoly of harvesting and marketing of sturgeon and its
products. An informal Embassy translation of the resolution follows.

# Text of Resolution 584

Begin text:

###### Resolution Number 584 of September 26, 2005

**"On measures to ensure the fulfillment of the obligations of the
Russian Federation under the Convention on International Trade in
Endangered Species (CITES) of March 3, 1973, relating to sturgeon
species".**

1\) Determines that,

a)  The Federal Veterinary and Phytosanitary Surveillance Service
    (hereinafter referred to as the administrative body) as the
    administrative body will be responsible for ensuring the fulfillment
    of the obligations of the Russian Federation under the Convention on
    International Trade in Endangered Species of March 3, 1973
    (hereinafter referred to as the Convention) relating to sturgeon
    species;

b)  The Federal state unitary enterprise "The All-Russian Scientific
    Research Institute of Fish Industry and Oceanography" will act as
    the scientific body to ensure the fulfillment of the obligations of
    the Russian Federation under the Convention relating to sturgeon
    species.

c)  The Ministry of Foreign Affairs shall notify the Secretariat of the
    Convention on the authority and location of the administrative body
    and the scientific body.

2\) Establish, that,

a)  The Federal Veterinary and Phytosanitary Surveillance Service shall
    issue in cases envisioned by the Convention a permit for exporting
    sturgeon species and products manufactured from them including
    caviar (hereinafter referred to as an export permit); a permit for
    importing the sturgeon species and products manufactured from them
    including caviar (hereinafter referred to as an import permit); a
    certificate for re-exporting the sturgeon species and products
    manufactured from them including caviar (hereinafter referred to as
    a re-export certificate); and, a certificate for introduction from
    the sea of the specimen of the sturgeon species covered by the
    convention (hereinafter referred to as a certificate for
    introduction);

b)  Decisions on introducing export quotas with respect to the sturgeon
    species and products manufactured from them including caviar
    (hereinafter referred to as export quotas) are the responsibility of
    the Government of the Russian Federation based on the proposals of
    the Ministry of Agriculture of the Russian Federation, in
    conjunction with the Ministry of Natural Resources of the Russian
    Federation and the Ministry of Economic Development and Trade of the
    Russian Federation (The Secretariat of the Convention shall be
    notified about the Export quotas);

c)  Export quotas do not cover fertilized caviar, larvae, the sturgeon
    species and products manufactured from them including caviar that
    have been raised in fish-raising facilities based on different forms
    of property under artificial conditions;

d)  Exports of sturgeon species and products manufactured from them,
    including caviar, is carried out with a license of the Ministry of
    Economic Development and Trade of the Russian Federation (in
    addition to the export permit issued by the Administrative body);

e)  Importing sturgeon species designated in Annex I to the Convention
    and products manufactured from them including caviar is allowed
    provided the existence of an import permit issued by the
    administrative body, an export permit or a re-export certificate,
    issued by the administrative body of the country-exporter as well as
    the license of the Ministry of Economic Development and Trade of the
    Russian Federation;

f)  Importing sturgeon species designated in the Annex II to the
    Convention and products manufactured from them including caviar is
    allowed provided the existence of an export permit or a re-export
    certificate, issued by the administrative body of the
    country-exporter as well as the license of the Ministry of Economic
    Development and Trade of the Russian Federation;

g)  Re-exporting the sturgeon species and products manufactured from
    them including caviar provided the existence of the appropriate
    certificates;

h)  Exporting from the territory of the Russian Federation as well as
    importing into the territory of the Russian Federation by physical
    entities of sturgeon species caviar in the quantity not exceeding
    250 grams per one person irrespective of the age of an individual is
    allowed without an export permit or an import permit, issued by the
    administrative body, as well as without a license from the Ministry
    of Economic Development and Trade of the Russian Federation;

i)  Removal from the territory of the Russian Federation of the sturgeon
    species and products manufactured from them including caviar as well
    as selling the above mentioned in Duty Free shops is permitted only
    in a specially marked packaging.

3\) The Ministry of Agriculture of the Russian Federation shall develop
and approve in compliance with established procedures:

a)  The procedure for developing, issuing and registering of export
    permits and import permits, the procedure of introducing amendments
    into the above mentioned permits, suspension of their validity and
    annulling of the above mentioned permits as well as their format;

b)  The procedure for developing, issuing and registering of a re-export
    certificate and of a certificate for introduction, the procedure of
    introducing amendments into the above mentioned certificates,
    suspension of their validity and annulling of the above mentioned
    certificates as well as their format.

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d)  The Ministry of Agriculture of the Russian Federation jointly with
    interested Federal bodies of Executive power shall submit in a
    2-month period in accordance with established procedure into the
    Government of the Russian Federation proposals on introducing
    amendments that envision return of the biological water resources
    into their habitat or, if it is not feasible, their disposition in
    the location where confiscation (withdrawal) took place, these
    amendments shall be introduced into the Federal laws and into other
    regulatory legal acts, which are regulating the procedures for
    handling confiscated biological water resources.

The following government regulations are hereby revoked:

Resolution of the Government of the Russian Federation of August 17,
1998 #968 "On the measures to implement Recommendations of the 10-th
Conference of the states that signed the Convention on international
trade in endangered species of March 3, 1973, relating to sturgeon
species" (Collection of the Legislation of the Russian Federation, 1998,
#34, page 4094);

Item 4 of the amendments and supplements which are introduced into
certain decisions by the Government of the Russian Federation in
connection with the Decree of the President of the Russian Federation of
September 22, 1998, #1142 approved by the Resolution of the Government
of the Russian Federation of July 6, 1999, #768 (Collection of the
Legislation of the Russian Federation, 1999, #29, page 3742);

Resolution of the Government of the Russian Federation of June 16, 2001
#469 "On introducing amendments into the decision of the Government of
the Russian Federation on the issue of fulfillment of the obligations of
the Russian Party resulting from the Convention on international trade
in endangered species of March 3, 1973" (Collection of the Legislation
of the Russian Federation, 2001, #26, page 2682).

M. Fradkov

Chairman of the Government of the Russian Federation

End text.

# Comments

Resolution 584 was passed in response to CITES concerns about the
rapidly declining world sturgeon population, specifically in the Caspian
basin, and reflects the first government attempt to re-establish a
monopoly over sturgeon fishing and caviar sales. The Russian government
believes that a state monopoly will help to prevent over-harvesting and
poaching, two of the major causes for the sharp decline in overall
sturgeon stocks. The Minister of Agriculture Aleksey Gordeyev stated "it
is necessary to impose a state monopoly on sturgeon fishing and sales,
as well as sales of black caviar to really place both fishing and sales
in one set of hands." Gordeyev also advocates mandatory destruction of
products confiscated from poachers.

However, specialists from the All-Russian Research Institute of
Fisheries, alerted that the attempt to re-regulate the sector will not
be effective if not followed by criminal prosecution and that custom
barriers are not established against poaching under a new agency that is
able to enforce export control and clearance.

Trade sources believe that government monopoly over this sector would be
a serious blow to private companies and would result in higher prices
for product that is already expensive and considered a luxury. In
Russia, one kilogram of caviar sells for 7,000-10,000 rubles (US
\$250-350). However, experts believe that a government monopoly may
increase the price of black caviar up to 15,000 rubles per kilogram. The
Director for the International Office of Swiss's Planet Caviar, which
specializes in trading Russian caviar, was surprised by the news
regarding the Russian government's intention to set up a state monopoly
in this sector. He noted that Iran, the largest producer and exporter of
caviar, is currently considering privatizing its state caviar monopoly
due to the lack of profitability.