OVERVIEW  Development. Newell, golden eagle, andloon. ivory-billed species include peregrine falcon ( reindeer and snow sheep breed near thebird lake. Rare round lake, which hosts three endemic species.char Wild species of alpine plant grow around beautiful, this nearly and wetland). (arctic 1. Elgygytgyn Lake 1.13, map 19)(see p. (Chukotka) Okrug Autonomous Chukotsky lands. Overfiancestral industrial shing, mining. pollution is forcing indigenous people to move from their degraded huge beyond areas restoration. Severe localized ing grounds. forests of the Ola River basin protect salmon natural spawn- (forest). basin 6. Ola River borders. golden and Steller’s eagle, and white-tailed sea eagles. and goosebean ( whooper swan, greater white-fronted goose ( ValleyKavinsky ( and southwestern have higherAlaska brown densities.bear individuals per more a than hundred live within the refuge’s boundaries ( tem. Odyan ( Both and wetland). (forest Valley Zakazniks and Kavinsky 5. Odyan fl ictwith the needs ofindigenous peoples. nearby waters. Commercial fiand shing hunting oftencon- fiarea. shing and other marinea this resources,prime making commercial of Okhotsk, hugehas populations of herring, salmon, crab, most biologically productive and diverse territories of the Sea and Bay (wetland marine). Gizhiga 4. towns in andthe villages basin havefacilities.sewage sanitary where there is a railroad and a highway. Only two of the seven onmining) the ecosystems in the middle and upper basin, for Pacifi c salmon. Basin riversnortheastern are Khasyn spawningAsia. grounds unique and natural economic community unparalleled in (wetland). basin River 3. Khasyn extraction is a future threat. Gertnera toBays residents.are harmful Potential oil and gas ecosystems. affected The polluted waters of Nagaeva and routes, and heavy exploitation of biological resources have Threats: PoorlyThreats: designed industrial development has ThereThreats: are attempts to mine within Odyan’s A minecoal Threats: on the shores of the bay pollutes Industrial pressureThreats: (logging, hunting, and coal High populationThreats: density, intensive transport J. zakazniks 2004. 72 are linchpins of Magadan’s protected area sys- 10 , McKinleyville, 000 A. fabalisA. sq. onlykm); southeastern Kamchatka 320 The ha) was created to protect brown bears: , 000 Just ofeast city, Magadan the larch Russian ha) includes nesting grounds of the ), as well as endangered osprey, This basinThis represents a Falco peregrinus Gizhiga Bay, one of the Relic and endemic Far CA: Anser albifrons East: ), gyrfalcon, ), gyrfalcon, Daniel 2 A . ), 5 & Reference Daniel. on the salmon. Indigenous peoples rely on the area. migrating gray whales ( Northeastwhales killer ( Seals, Asia. include one of the stockslargest of chum salmon in marmots frequentKamchatkan the Thearea. fi sheries bear, moose, ermine ( and wetland). zone (arctic riparian 3. Meinypilgyn construction, and land and water pollution. Overfi shing. salmon, migrating calico breeding grounds in the is oneAvtatkuul Zakaznik of the remaining largest goose wetlands here are critical for nesting and migratory birds; and wetland). (arctic lowlands Anadyr Lower 2. populations. and waste dumping salmon affect and wild reindeer uncontrolled archeological illegal mining, excavations, grazing. grazing. sites. forrefuges rare arctic plants and serve as reindeer calving Chosenia and poplar groves, reaching and wetland). (forest monuments 7. natural Botanical Sable and wolverine poaching. including the projectKubaka in adjacent Oblast. Magadan reach record population densities here. rusticolus ( support seavalleys eagle, taiga gyrfalcon white-tailed and forest). (arctic Zakaznik 6. Omolonsky Oil and development.gas ( valuable stocks of humpback salmon and dolly varden paradisaea include Bewick's( swans nestand hills plains inand coastal wetlands. Other birds and wetland). (marine Inlet 5. Chaun low-elevation plane and helicopter fl ights. for their and tusks, uncontrolled tourism, illegal particularly rookeries, staying for up to six months. of half than the world’s population walrus visits these six and marine). (arctic rookeries Walrus 4. illegally.eggs aroundgarbage tosettlements; are locals starting collect Salveninus malma Threats: Largely thepristine; problem primary Threats: is FutureThreats: oil development may lead to road Although the Threats: area is remote, overfi shing, Threats: UncontrolledThreats: logging for fi rewoodand reindeer Upstream Threats: and downstream gold mining, fiMining, Threats: and shing, reindeer localized grazing. PolarThreats: and brown poaching attacks, bear of walrus ), wild reindeer, brown bear, and wolverine. Moose ), and Ross’s The gulls. rivers have commercially 466 Guide ). pages Mustela erminea Eschrichtius gibbosus rfe Cygnus Cygnus bewickii nelma for . The rivers are important for , other whitefi shes,and smelt. Conservation w e i v r e v O Geese and shorebirds Orcinus orca ), snow sheep, and 18 In some years, more m in height, are ), arctic terns ( Tundra and ) visit to feed The vast ), and Brown  Falco Sterna

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OVERVIEW OVERVIEW Development. Newell, 44 local indigenous peoples here. Upwelling currentsocean pro- Fish are andthe food marine primary mammals sources for (marine). Koryakia near Shelf Continental 6. Sea of Okhotsk oil and development,gas mining. coal tion from andsewage industrial wastewater, possible offshore the rivers. Salmon and other commercial and rare fi sh species spawnin the Moroshechnaya and Utkholok Rivers are now and feeding grounds for migratory birds, the lower basins of and (wetland forest). region of the Tigilsky 5. Rivers pollution from andsewage untreated waste. okhotensis northernmost habitat for Okhotsk fi mbristilis ( formedhas around nearby hot springs, which includes the tence of indigenous peoples. unusual thermal ecosystemAn and migratory birds. Salmon are important for the subsis- clude snow sheep, wild reindeer, marmot,bear, Kamchatkan (wetland). Zakaznik Palanskoe Ozero 4. development,gas mining. appraisal of its biological potential resources; offshore oil and the island an area of traditional nature use without a full crabking chatka ( the shelf contain commercially valuable species, such as Kam- Salmon spawn in Thestreams. almost all shallow waters of populations, and other rare but unprotected fl oraand fauna. marine bird colonies, rookeries, marine mammal white fox (marine). Zakaznik Karaginsky 3. Ostrov ofdrainage thermokarst lakes. for the Belaya River, irrigation projects and the consequent road. The hydropowerAmetistovo-Manily plant proposed andalong poaching, particularly the route of the proposed ing. Future gold mining may lead to increased pollution importantalso for nesting and migratory birds. thermokarst highly productiveThis lakes. reindeer pasture is by many riverssmall and dotted with numerous and glacial hilly tundra swamps anddominate grassy the drained area, Dol (valley) and (wetland arctic). Parapolsky 2. cut for fuel. on the Penzhina River fiand affect sh populations. Woodis cludes lichen cover and important winter pasture for reindeer. the Kayanderlargest larch forests in Northeast andAsia, in- and (wetland arctic). 1. Ayanka Zakaznik Severnaya 1.14, map 20) (see p. (Koryakia) Okrug Autonomous Koryak

Threats: IntensifiThreats: edcommercial and illegal shing, fi pollu- Increased Threats: salmon roe poaching and overfi shing; Increased Threats: poaching aby proposal locals; to make PopulationThreats: growth, geological poach- surveys, ForestThreats: fi andres causeloggingdisastrous oods fl  T S A E R A F N A I S S U R E H T J. ), a 2004. Red Data Book Paralithodes kamchatica McKinleyville, The plant. Russian Notable fauna in- Created to protect ). Far Sedge-covered Sedge-covered CA: Fimbristilis zakaznik Nesting Protects East: Daniel s. A ter levels in the RiverKamchatka basin and protecting valu- (forest). Island Conifer 2. larly hunting. the negative of effects largely tourism,unregulated particu- the Shanuch River nickel and copper deposit, forest fi andres, marmot, chatkan andPacifi all c salmon species. to brown bear, snow sheep, sable, rare wild reindeer, Kam- the Volcanoes Worldof Kamchatka Heritage site. It is home practice subsistence activities in park,this which is a ofpart well as non-Native residents— mens, and Koryaks—as (forest). Park Nature 1. Bystrinsky Oblast Kamchatka development. whales ( other species, including halibut, herring, gray whales, beluga vide a major reproduction area crabforking and Kamchatka fi economic shing; local crises. are found here. ( tiwake include theperegrine gyrfalcon, falcon, kit- and red-legged andAmerican bird Eurasian species; important habitat and migratory stopover for areas both suffer lifestyle, al extreme economic hardship. It provides The indigenous to Aleuts, preservestruggling their tradition- most of the Commander Islands and surrounding waters. (marine). Zapovednik Komandorsky 4. such as Uzon Caldera. in the Valley of the Geysers, but toother affect starting areas salmon. Kronotskoe, home to endemic andchar freshwater sockeye zone, a dense network of rivers and creeks, and the huge Lake Conifer Island), alpineglacial marine alandscapes, coastal includes of large areas wetlands, forests (including ofpart other unique phenomena such as the Valley of Death. It also the world-famous Valley of the Geysers, Uzon Caldera, and Worldofcanoes Kamchatka Heritage site, the reserve boasts wetland). and forest, (volcanic, Zapovednik Biosphere 3. Kronotsky logged), frequent forest fi res, poor forest regeneration. the only source of timber on the peninsula and are widely been preserved. and Dahurian larch) on Inaccessible Kamchatka. forests have almost the only stands tall of coniferous forest (Ayan spruce able salmon spawning grounds, the Conifer Island forests are & Reference Threats: CommercialThreats: logging (these forests are almost Threats: DevelopmentThreats: of the goldAginskoe deposit and CommercialThreats: fi shing, proposed andoil gas Threats: PoachingThreats: of fiand sh,driftnet mammals, birds; PoachingThreats: and poorly planned tourism, mainly Daniel. Larus Larus tridactylus Delphinapterus leucas The most important protected area within the Vol- 466 Guide (see map 1.15, map 20) (see p. pages ). All northern). All Pacifi cmarine fauna Vitally important for regulating wa- ), and seals. for Indigenous Evens, Itel- Conservation Red Data Book The reserve includes species and 

OVERVIEW OVERVIEW  Development. Newell, use. ing, collection of nontimber forest products, and recreational that crosses three rivers; all increased fi shing, hunting, poach- popular for recreation and tourism. rivers grounds.are important Increasingly salmon-spawning peregrine falcon, whooper swan, andduck. mandarin All tovegetation. Asian East Home musk todeer, Sakhalin logging, and Sceneryaccess. varies from and waterfalls cliffs fi andr spruce forests, preservedin the absence of forest res, fi (forest). basins River and Bakhura Sima, 3. Anna, other overfi sources; shingin the Sea of Okhotsk. oil and projects;gas pollution from oil existing industry and pipeline construction and infrastructure related to offshore summer here.pastures fi sh onthe baysin summer;Ulta and Evenki herd reindeer on summer in waters.the coastal Indigenous Nivkhi live and taimen ( salmon species, the rivers are home to the endangered Nordmann’s The greenshank. bays support eight waterfowl and a nesting site for sea ospreys,eagles, and the land and marine). (wet- Sakhalin of bays Northeastern and wetlands Coastal 2. (Japan). Friends of andthe theEarth–Japan, Pronatura Foundation on Environmental Protection, Environment Sakhalin Watch, Marine Geology and Geophysics, Committee the Sakhalin in additional plans to log by helicopter. of the territory and is building roads and loading sites, with with tourists. In addition, the picturesque mountainous area is popular ground for wild reindeer, and a spawning ground for salmon. important nesting area for sea aeagles, rutting and calving one of Sakhalin’s last large frontier forests, regionthis is an (forest). basins and River Vengeri 1. Pursh-Pursh 1.16, map (see 21) p. Oblast Sakhalin anchored at base. the military possible radiation from leakage nuclearaging submarines marinefl and coastal oraand fauna. transportation and is home to southeast all Kamchatkan mountain Itranges. is an important bay for recreation and populationmain centers, as well as by picturesque volcanic harbor,natural Avacha Bay is surrounded by Kamchatka’s and Bay 5. Avacha (wetland marine). 1999 Threats: Logging and Logging intensifiThreats: ed access byhuman a road transportation,Seismictanker Threats: drilling, testing, Update: Vostochny ( Zakaznik ALogging. local timberThreats: company leasedhas part Industrial, Threats: household, pollution;and agricultural J. through the joint Institute ofefforts theof Sakhalin 2004. Hucho sakhalinensis McKinleyville, An importantAn migratory stopover point for The Russian ), and endangered gray whales 65 A world-renowned , 386 ha) was established Far CA: Red Data Book East: Supporting Old-growth Old-growth Daniel A & Reference Daniel. climatic havechanges fl affected oraand reducedanimal ing osprey sea eagle. and white-tailed plant species and twenty 1920 forestsous-broadleaved remain theafter Japanese logging of andsubzone. botanical Fragments of old fi andr conifer- the is warmest ofapart distinct geographical Sakhalin, (forest). Peninsula 5. Krilon ing, and attempts to toxicbury chemicals. construction, planned tourism,unregulated mining, poach- enterprises want to log the spruce. Other threats include road medirostris rivers and bays have pink salmon, green sturgeon ( ermine, wild reindeer, sea eagle, and Siberian grouse. The found much south. further Fauna includes brown bear, sable, ecosystem, including Yeddo spruce ( peninsula ahas warm microclimate and an unusual forest (forest). Peninsula Schmidt 4. the Uncontrolled hunting, encouraged by a road constructed in local administration approvedhas logging and mining. ( many rare insects. The rare poppyendemic Sakhalin East petroglyphs. Alpine fl oragrows and at mid-elevations shelters tion, Vaida Mountain, uniquehas caves with andstalactites 7. (forest). Vaida Mountain poaching. reduced water levels and increased sedimentation. Year-round the andlake the near sea. theLogging lake’s tributaries has the railroad dike cuthas off thechannel between natural ters, and inadequate food sources for fi sh, because primarily in the buffer zone of Poronaisky Zapovednik. feed near the shores. The eastern ofpart the islake included hica migrating ducks, waders, Muskrats and( gulls. filled with fi thissh, is an important stopover point for (wetland). Lake 6. Nevskoe the fi shingindustry is irresponsible. fi areres threata with the increasing number ofvisitors, and populations. is Logging planned in the Basin,Uryum forest Papaver valpoli Threats: ErosionThreats: loggingafter siltedhas rivers and With declining timberThreats: reserves elsewhere, timber Threats: Breaching monument natural Threats: regulations, the SpreadingThreats: swampland, increasingly shallow wa- 1980 ), red foxes, river otters, brown andbears, raccoon dogs – 1940 s, destroyedhas wild reindeer populations. ), andsturgeon kaluga ( . Species diversity fiis high: ve hundred vascular 466 Guide ) grows Perevalnoenear Lake to the south. pages Red Data Book for Sakhalin’s forma- rift largest A large, shallow, brackish lagoon The southwestern peninsula, Sakhalin’s northernmost Conservation w e i v r e v O Huso dahuricus Picea glehni bird species, includ- Ondatra Ondatra zibet- ), normally ). Acipenser 

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OVERVIEW OVERVIEW Development. Newell, 46 capital to build a competitive base—have manufacturing technology, management and marketing expertise, and ing, and boat couldrepair. provide Foreign investors—who entire were villages founded on logging, hunting,fi coastal sh- strongly the affected economies of many decline of processing in the timber and fi shingindustries has government investment because of budget constraints. obsolete due to lack of reinvestment by industry and lower for machine building and timber and fi sh processingis but capacity manufacturing not.has theshifted region’s economic ties to Northeast Asia. economic bonds combined with the lure of hard currency former Soviet command economy. The breakdown of old Russia, severing the interdependent economic bonds of the portation costs effectively isolated the region from the rest of the andogy ineffi cient production), crippledthe mestic and international markets (due to outdated technol- domestic demand, and lack of competitiveness on both do- federal subsidies, combined with high fuel costs, declining attract foreign investment to retool industries. But shrinking opportunity to export to the PacifiRim,and c the chance to their newfound control over local resources, unprecedented in the perestroika outside the region. rfe European Russia or abroad. Today more of half than the been highly dependent on processed goods imported from not nearly enough to local needs. satisfy The milled lumber, ficanned sh,andequipment—but military the production of occurred—notably also manufacturing ineffi ciencyand high levels of wasteallinindustries. Some Soviet economy, centralized however, resulted in tremendous producerlargest of raw materials by the mid- in other of parts Russia, the plans. Although production costs were generally higher than set quotas for specifi c enterprisesunder a series of ve-year fi port. To increase production, economic ministries in Moscow enterprisesstate-owned ensured steady production and ex- toals the rest of the Soviet Union. federal Large subsidies to fi sheries,and timber suppliesand exported these raw materi- came before, exploited the region’s precious minerals, metals, the region’s development. planners in Moscow, not regional administrators, dictated supplier of raw materials for the rest of Russia. Until recently, 1682 Since the era of the Petertsar the Great (who ruled from Newell Josh Economy

Since With the devolution thatof came with decision-making ’s energy, and consumer foodstuffs, products are made 1990 to  rfe 1725 T S A E R A F N A I S S U R E H T s, reducing production insectors. all High trans- J. 1999 hoped to strengthen the regional economy—using , however, entrepreneurs and government offi cials ), the 2004. , overall industrial production increased,has rfe 40 McKinleyville, has beenhas outpost a military and The 39 Soviet industry, like that which rfe Russian had become the country’s 41 Existing equipment Existing rfe regions, where rfe rfe 1980 Far CA: economy in has alwayshas s. The East: Daniel 42 The A tization as “spontaneous”efforts since institutional and legal Joseph Stiglitz, and others often refer to Russia’s early priva- corruption and capital fl ight.The World economist Bank, by the year accounts and real estate amounting to about a month during the Capital fl ight totalled a staggering businesses exportof half the fi shcaught in Russian waters. GovernorSakhalin Igor Farkhutdinov estimates illegal operates in the shadow and is controlled by capital. illegal estimates between revenue to avoid taxation is widespread. The World Bank corruption and capital fl ight. impededhas foreign investment and, more critically, fueled complicated, burdensome, and unpredictable in the world,” Theregime, tax Russian recognized as “one of the most regulation. and weak government privatization, Corruption, (see pp. chosen instead to develop resource natural extraction projects President Putin triedhas to reduce confusionthis by gradu- governments, are marred by jurisdictional inconsistencies. use, and forest management, aimed at empowering regional allocation. A number of federal decrees on privatization, land which muddies lines of jurisdiction over resource use and foreying power between federal and regional governments, augmenting their meager salaries. these agencies use also their positions to enrich themselves, to fi shingcompanies. Some unscrupulous offi cials within it receives for determining sustainable fi levels sh-harvesting thefi primary sheries institute, research the sells shfi quotas tinro selves, disguising their as illegal harvesting salvage logging. timber operators and more timetimber them- harvesting ( commercial activity. branches Local of the forestry service To supplement their budgets, some agencies have resorted to funds to effectively monitor the rising number of businesses. Committee. swelled to companies were registered in the mining. In fismall rms in many sectors,especially shing, fi forestry, and ties, together with trade deregulation, led to a fl urry of new privatized firms to createcompletely new rms. fi Theseactivi- the businesses. Others appropriated equipment from newly enterprises under their charge rather continuing than to run short-term personal enrichment, sold offof assets state-run personalgain control over them. stripping formerly public and assets initiating schemes to frameworks were not in place to prevent opportunists from & Reference leskhoz But regulatory agencies have chronically lacked suffi cient Some that argue privatization helped set the stage for Government regulation beenalso has weakened by jock- Daniel. (Pacifi cInstitute of Fisheriesand Oceanography), es), es), for example, now spend less time regulating 6–99 – 86 1 , 1990 2000 600 47 ). for example, , according to the Federal Fisheries . 466 45 40 Guide 1990 to pages 50 s, with capitalRussian in offshore percent of the economyRussian 43 306 The practice of concealing for 46 rfe fiand shing sh-processing fi Some seeking managers, u.s.$1 Conservation ; by billion to 2001 u.s.$150 , fithis gure $2 billion billion 44 and 

OVERVIEW OVERVIEW  Development. Newell, issues have focused on lines similar of inquiry. D. J. Peterson, The few academics to consider environmental post-Soviet vestment, reduction of subsidies, and continued deregulation. The amake can real difference in improving the environment.” ing in projects that reduce and wastage pollution, the pollute the atmosphere, land, and water resources. By invest- continue to use energy and materials very ineffi cientlyand report concludes:of the“[M]any region’s industrial plants ment equipment, energyand andwasteful material use. ing the use of obsolete equipment, lack of pollution abate- stance, focuses on continued ineffi ciencyin industryinclud- ebrd struction and Development ( and energy use. Reports by the European forBank Recon- economy is positively or negatively pollution affecting levels conditions today, and ( ( Those that have, essentially focus on two lines of inquiry: theof effects transitionthis on theenvironment. natural and economic development. But toofar few have considered and measures to move Russia toward stable political, social, privatization and liberalization and to consider future policies researchers with a wealth of data both to debate theof effects More ten than years of transition in Russia have provided poordynamics, government regulation, and weak rule of law. investment, corruption, capital fl ight, power federal-regional production, decline of of types foreign manufacturing, Soviet economic and political trends as lower industrial World andBank ics, research institutes, and fiinstitutions nancial suchasthe on the environment. transition of economic Effects priorities were often ignored, a practice that continues today. munist leaders.Party Laws that confl ictedwith government judges were appointed or removed at the whim of Com- because there is no independent judiciary. In Soviet times, applied in practice.” but guidelines for action, subject to endless variation when the said,rules and … most wererules not atrules really all, ness law: … Who you knew was more important what than lawyer BlockKevin found Russia was governed by “lawless- tion, is ofpart the problem. living in After the ence for “situational” law, which is more open to interpreta- Russia’s traditionally low regard for written law and prefer- simply lack the orexpertise to will enforce and fulfillthem. offiwidely cial accused ofcorruption. Nazdratenko, then governor of Primorsky who Krai was an Pulikovsky, who helped orchestrate the removal of Evgeny rfe fordistricts Russia. The presidential representative for the representatives, or “super-governors,” to oversee seven federal federalrecentralizing ally control. He appointed presidential 1 ) how the Soviet environmental industrial legacy affects Some regional laws and responsibilities are cials clear—offi federal district is the former general Konstantinmilitary J. ebrd ’s 2001 2004. then offers a prescription of increased foreign in- publication, McKinleyville, imf The 48 have analyzed athave length suchanalyzed post- Existing laws Existing are poorlyalso enforced 2 ) whether the transition to a market Environments in Transition Russian ebrd ) typify both approaches.) typify Far CA: rfe East: Daniel Academ- for years, , for in- ebrd 49 The A & Reference Daniel. leading to temporary closures of fiandareas shing severe and salmon. decimatedhas This stocks of some species, demand by export markets, namely crab, pollock, sea urchin, Commercial fi shing, for targets instance, only speciesin species and thesystems natural upon which they depend. to process many harmful plant and animal resources—a pattern intensifithe es and natural of harvest certain localizes what resources are extracted, where, and at what rate. This theenvironment? natural and rise in raw materials exports to markets affected Asian to explore. industrial effi ciency.There are otherequally important angles environmental problems to the study of pollution levels and of these studies restricting risks the consideration of complex to blame. such as pollutioninfrastructure, abatement equipment, are nomic effi ciencyandinvestment falling in environmental industrial output)than and concludes that reduced eco- more pollution-intensive (pollution levels have dropped less for exploresinstance, why the economyRussian becomehas regulations, and hide profits. Collusion betweencorrupt interestsrights, avoid toseeking land-use gain environmental developedalso close ties with timber, and mining, fi shing Oblasts. Amur andBut Kamchatka these governments have set aside oflarge tracts land as protected in particularly areas, however, have been mixed. Some regional governments have stewards of local resources Muscovites. than The results, regionalalded theresidents change, thinking would be better environmental decisions. Environmentalists in the governments unprecedented responsibility for economic and ment. The breakup of the former Soviet Union gave regional and regional power ondynamics resource use and manage- musk deer, black and brown andbears, ginseng. the Siberian by-products,affecting particularly (Amur) tiger, have led to a fl trade ourishing in endangered speciesand their borders for export and poor domestic economic conditions water levels, which lead can to fl ooding.The opening of logging does occur along protected river systems and affects amurense yew ( loggingprotected targets Illegal species, such as Korean pine, government to close crab beds and greatly reduce quotas. Russia’s most lucrative marine export, forcedhas the Russian methods illegal to fl kingof harvesting crab, ourish.Illegal tion and corruption encourages such overharvest and allows diverse region (see pp. on forests in the southern due to loss of subsidies) are increasingalso logging pressure geography of new markets and rising transport costs (largely forests and subsequently threaten the global climate. The logginglarch mayof leadnorthern to permafrost large-scale restrictions.harvest In the timber industry, demand Asian for How, for thehas instance, Another subject requiring study is the ofeffect federal Taxus cuspidata ), and quota-restricted species, such as ash. Such 50 Although useful and Although necessary,useful the narrow focus 466 Guide pages ), and Amur cork tree ( 9–70 69 51 for rfe Asian markets nowAsian largely dictate , Russia’s most biologically ). Weak government regula- rfe Conservation ’s drop in manufacturing w e i v r e v O Phellodendron 52 rfe  her-

and 47

OVERVIEW OVERVIEW Development. Newell, 48

lin, Kamchatka, and in the gold-rich Kolyma River basin in in basin River Kolyma gold-rich the in and Kamchatka, lin, Sakha- Vladivostok, Khabarovsk, — East Far the throughout built were Camps camps. other the at disobeyed who those for compounds punitive (3) and mining, and logging for camps (2) colonies, agricultural and factory (1) developed: camp of types Three State.” the against “crimes petty for up rounded were people as safe was citizen Russian No labor. slave provide to system gulag tsarist the perfected Stalin drive, massive this future.” the to way the led and targets production smashed who workers elite the were priests its cathedrals, its were Factories faith. new the was “Industrialization complex. industrial huge a into economy agrarian primarily a from Siberia transforming by West the to up catch to sought Stalin fi plans, of series a ve-year Through 1924. in power to came who Stalin, under momentum gained industry of control State community. c Asian-Pacifi the with ties broke and control state under industries all brought leaders communist as investment, foreign to halt abrupt an brought Revolution Bolshevik The Red the of Rise The East. Far the to equipment agricultural of types all supplying was Company Harvester International and fi were ventures companies nancing gold-mining British 1910, by and railroad, the along developed centers Industrial century. the of turn the by thousand thirty about of population a with port trading and military bustling a into grew quickly East) the of Lord as translates (which 1897. in Vladivostok completed was Oblast Amur in Blagoveshchensk and vostok civilization.” and trade to world new a open and Asia, Northern of depths obscure the penetrate to was enterprise commercial which by channel destined “the was River Amur the To Collins, Ocean. Pacifi the to Amur c the of headwaters western the connect to railroad a proposed and potential Amur’s the saw Collins McDonough Perry millionaire American 1857, the as early As RFE. entire the in basin richest the was it as importance, primary of was basin River Amur the Developing export. and use domestic for materials raw extract to centers industrial develop to and China, and Japan of powers military growing the from shores eastern Russia’s protect to supplies and troops of transfer allow to colonization, facilitate to built was railroad The Vladivostok. to Moscow from km 9,000 than more spans today which 1905, and 1891 between Railroad Siberian Trans- the of building the with began really East Far the and Siberia industrialize to effort government great The region. the inhabited peoples native 1850, to Prior resources. new of search in east moved gradually who traders fur by spurred ago, years 150 just began RFE the in development Industrial Railroad Trans-Siberian the Building  Convicts built the railroad, and the fi rst leg between Vladi- fi the and between leg rst railroad, the built Convicts T S A E R A F N A I S S U R E H T J. 2004. 53 McKinleyville, The Russian 54 Far CA: 55 To fuel To fuel East: Daniel A system persisted even under President Mikhail Gorbachev, Gorbachev, Mikhail President under even persisted system exile.” of places Russian traditional the of fi to one to two for years ve exiled be could month a than more for job proper a had not had who “anyone that stipulating by 1961 in system gulag the of version smaller a revived chev Krush- Nikita President dissent, increasing and economy ing ail- an with Faced 1956. in prisoners political so-called million one than more held still camp Kolyma-Magadan the but ers, one-fifth. about claimed camp Basin Kolyma the camps, labor by killed 15 12 million to estimated the Of year. a percent 25 was rate death the as — full camps the keep to exiled were citizens million 7 estimated an Terror, Great of year 1937, in the labor; slave on dependent completely almost economy an created had Stalin prisoners. million 21 than more held Archipelago gulag the 1930s, the in peak its At Komsomolsk-on-Amur. and Magadan of cities the built laborers Camp Oblast. Magadan ecological costs. costs. ecological project’s the of reminder painful a is construction line’s the by fi massive caused from res earth scorched The line. the along cities mining and logging planned originally the building fore be- money of out ran Moscow as disaster, economic an been has railroad fi The was later in 1989. billion nished U.S.$25 and again began project the 1974, In track. the up ripped Russia, European in war the for iron of need desperate in ment, govern- the II, War World of onset the with but project, the began Stalin places. many in border the hugs which Siberian, Trans- the than invasion Chinese possible to vulnerable less be to supposed also was It exploitation. for forests and deposits mineral vast up open would and Krai, Khabarovsk in terminating before Trans-Siberian, the to parallel and of north run would which Mainline, Baikal-Amur the railroad, them. embraced Russians all fi not grounds, destroyed shing and peoples, indigenous and local displaced forests, of fl hectares of dams millions ooded faith.” Communist the of article the are they and nature over conquest man’s embody They rockets. and troops as just might, Russian symbolize “Dams day. the of order the became dams hydroelectric huge and — Sakhalin to Stait Tatar the under tunnel railroad half-built the as such abandoned, were some although — continued Stalin by initiated projects development large-scale Many centers. industrial as cities extraction resource ex-gulag the using labor, free tensibly system. gulag Stalinist the horrifi of the scale c reached never it but & Reference Stalin’s death in 1953 brought the release of many prison- many of release the brought 1953 in death Stalin’s — JN — new a of dreamed planners Soviet dams, to addition In os- to largely returned empire Soviet the Stalin, After Daniel. 56 466 Guide pages for Conservation 57 The prison camp camp prison The 58 However, as as However, and 

OVERVIEW OVERVIEW  Development. Newell, tial revenuetial from valuablethis national resource. In sum, and bribes for fi shing quotashave led tothe loss of substan- ity toward foreign involvement in the industry. Capital fl ight over rights resourceto shrinking this and by growing hostil- unprecedented public confl theicts between ties. The current decreasing fi sh quotasare accompanied by the economic health of the fi andshingindustry itscommuni- tion system that havetransparency lacks undermined further if stockthis continues to dwindle. and the end of government subsidies, face economic disaster with rising input costs, international market competition, key fi sheries. Many combined fiwith illegal thishas shing, depletedthe stockin bypervised foreign interests, ledhas toovercapacity; harvest internationally. Fleet modernization, fiand nanced often su- for the Soviet domestic market, to higher-value products sold tion. Fishing fromshifted lower-value species, bound mostly ized during the shipments are included. all Fish and fi sh products may account for of roughly one-half activity in many andsuch areas, Koryakia. as Kamchatka industrial sector. It is the only significant form of economic transport, and related activities, is probably the t. allison Fishing the banks, the regional chapters. The roles of international development culture because the latter are morediscussed extensively in timber are longer those than on energy,mining, and agri- each industry are provided. The sections on fiand shing greater below.detail Basic economic and resource data for timber, and mining, agriculture industries are indiscussed ronmental and economic developments in the fi shing, energy, mental management and control (see p. nated the two major federal bodies responsible for environ- is in charge of resource natural extraction, effectively elimi- Forest intoService ofthe Ministry Natural Resources, which tion of the Committee on Environmental Protection and the of industrial enterprises. President Putin’s recent consolida- power might insteadweaken further environmental oversight corruption resourceand illegal use, but reconsolidation of ects in the sessments and is required for proposed all development proj- versionscaled-down of environmental U.S.-style impact as- the orrigging avoidance of the regional offiand cials businessmenis evident in frequent rfe Ineffective fi sherymanagement and a shing fi alloca- quota The economicThis overview of the rfe 1992 J. export revenues, if estimated unrecorded high-seas ngo are evaluated in “Toward Sustainable Development.” rfe 2004. Law on the Environment, the —Fishing, which includes fi—Fishing, sh processing, storage, rfe fi shingindustry was andprivatized commercial- s, and foreign investment in the development of .Stronger federal control may help to reduce 1990 McKinleyville, The rfe s, spurring widespread fleet moderniza- fi shing enterprises already struggling 60 Russian expertiza rfe process. Mandated by is a backdrop. Envi- expertiza 0 06 – 103 Far CA: krai rfe process is a East: s and ). Daniel ’s largest oblast 59 A s & Reference Daniel. compromise the fi shingindustry’s long-term Howhealth? developments crucial raise questions. Why did privatization widely opposes the auction system, as does industry. the new head of the Fisheries Committee in March Primorsky Governor Evgeny Nazdratenko was appointed administrator, the Federal Fisheries Committee. The former Economic Development rather the than industry’s traditional valuable species. systemThis is supervised by ofthe Ministry ed with a controversial quota auction system for the most rfe inactive and dilapidated. formerly hubs of Soviet fi shing eetfl activity, are increasingly for repairs, supplies, and transshipments.cargo activities abroad, where in vesselsRussian foreign call ports Russia for vessel operators drivenhas much of the industry’s Meanwhile, the burdensome and regulatory tax regime in quotas within those limits to domestic and foreign operators. biologicallysetting sustainable fi shinglimits,and allocating plagued the key fi shery management tasks of gathering data, bureaucratic infighting, lack andoffunding, corruption have well below that of other fi shing nations. on vessel tonnage per unit of output, appears to have been However, the economic effi ciency ofthese vessels, based to more than to Japan. filargest shing eet fl andwas second marineinharvestonly the Pacifi c Ocean. at the end of the volumesAnnual atpeaked a level of almost a million tons in less long).Soviet Annual grew marinefrom harvest less than built hundreds of smaller oceangoing vessels (ships the large autonomous catcher-processors, while yards Russian ish, German, andshipyards later fi Ukrainian rst constructed deploying fi shing throughoutvessels the world’s oceans. Pol- mid- stable protein supply for the population. in Beginning the structure designedhierarchical to procure an inexpensive and the Soviet Union by was managed a highly centralized, roots lay in the Soviet period. The fi shingunderindustry for the fi shingindustry crisisevolved in the fiof the Soviet Heritage industry. shing rfe these questions, we theexamine current impasse within the and management models might be considered? To explore and what are the prospects for otherWhat success? measures forming the industry, so crucial to the well being of the capital fl ight? Finally, howis the PutinAdministration re- ussr arrangements in the industry evolved since the collapse of the last decade contributed to theHow crisis? have institutional thehas widespread involvement of foreign interests over the These trends constitute a widely proclaimed crisis in the fi shingindustry. The PutinAdministration has respond- fi shingindustry. and how overfi have they facilitated large-scale and shing 1950 63 s, the Per capita seafood consumption in the 466 20 Guide ussr kg, three times kg, higher U.S. than levels. 1980 1950 62 pages By time,this the began abegan massive shipbuilding program, to more than s, with roughly for Conservation w e i v r e v O 6 million tons in 65 The economic reasons ussr percent caught in 65 Although some had the world’s 10 1990 million tons rfe s, but its ussr ports, 50 2001 61 1970 These m or  grew rfe 64

and and . 49 ,

OVERVIEW OVERVIEW Development. Newell, 50 six havechairman: held the post since accompanied by frequent ofchanges the Committee’s stock instead of exploitation. Reduced authority was authority reducedwas also to management of fi sheries cut from CommitteeRussian of Fisheries, was and staff Fisheries. In state suchindustrial structures ofas the Ministry command economy led to the abrupt decline of powerful of government. role The changing the Soviet systemto ceased exist. of the industry itself, whenquicklychanged and drastically and its involvement in the fi shingindustry, thelike structure the regions. However, the scope of the government’s power administrative power resolved complaints between or from were not allowed to develop, and Moscow’s all-encompassing regions and the center over control of the allocation process in the activities of enforcement agencies. Disputes between in establishing andquotas allocating and only role a marginal of personal by gain regulatory offi cials playedalmost no role long-term participants that suggests corruption in the form capable of enforcing limits. evidenceAnecdotal harvest from regional leaders and individual enterprises, and thus largely allocation system was relatively resistant to infl uence by capacity.with harvest Also, the entrenched Soviet centralized was underutilized, and thus available to fi shingcompanies today,unlike most on fiallocations. shing However,throughout the Soviet era, enterprise and region ultimately depended (and depends)still both regionally and in Moscow, because the output of each of determining quotas was controversial and infl uenced towns, whose fates are now Thehighly uncertain. process created artifi enterprises, cially successful communities, and ofcase the tant provider of during social services the Soviet era. In the the enterprise was the employerlargest and the most impor- of these fi shing enterprises were locatedin remoteareas where Unfortunately for many employees and theirmost families, often involving or perish.layoffs or nonpayment of wages— process painful open markets, had to quickly transform—a entered enterprises that, when exposed to lower subsidies and quence of Soviet policies was that large numbers of employees consumer purchasing power. importantAn social conse- subsidized and product prices were set within the range of behind international Fuel standards. and capital were highly and the ofquality output, acceptable domestically, lagged tem refl ectedan emphasis on volumerather than effi ciency, growth of other Soviet industrial sectors: the industrial sys- to domestic consumers. tionally: of almost all it (over roe, and crab, most seafood was not highly valued interna- productshigh-value were exported, such as salmon, pollock,

This enormousThis buildup of fi shing powerthe paralleled  T S A E R A F N A I S S U R E H T J. 1 , 200 rfe 1991 2004. fi shingindustry, the Soviet economicsystem to , the ministry , became thethe ministry 400 rfe McKinleyville, employees. and accessible foreign fi shery stock The 66 90 Russian percent by tonnage) was sold The end of the 67 The ministry’s 1991 . Far CA: ussr East: ’s Daniel A the data on which quota decisions are based, because of the before.than Concerns have been aboutraised the veracity of conduct local scientifi c work moreindependently from Moscow. The various institutes, regional-level however, now InstituteResearch of Fisheries and Oceanography and then recommendations makes to the FederalRussian vostok, collects scientifi cdata from its regional branches tosimilar those of Soviet times: earnings. with substantial hard-currency other bureaucratic agencies to obtain control over an industry including an effort to curb corruption and the eagerness of tives for additionalinserting controls into the quota system, intouncertainty issuance. Observers point to a ofvariety mo- with other government bodies, introducing serious delays and mittee was forced to coordinate the quota allocation system eroded the committee’s authority; by the late map committee, which licenses vessels and fi shingcompanies (see overalllevels harvest remainedhas chiefl withy the Moscow Walleye or Alaskan pollock pollock Alaskan or Walleye their importance as an employer and social providerservice are the vessel operator’s record andin wage tax payments, criteria explicitly considered by each company as well as historical catch levels. Additional vessels, is based on ofthe type vessel owned or operated by andtas, the subsequent issuance of fi shingtickets to specifi c industry association. distributionThis of long-awaited quo- between companies, sometimes through an intermediary recommendations. the prime minister must approve entirethis set of harvest Resources. Once any questions or objections are resolved, of Natural Resources, and second to ofthe Ministry Natural from various national institutes appointed by the Ministry government Commission of ichthyologists mainly Experts, word, the committee’s recommendations are first sent to a istrative region ( Committee then quotasallocates to each respective admin- every level. declinedrastic in federal forfunding scientifi c research at & Reference Formally, the steps in determining quota allocations are function ofThe andall-important setting allocating The In an increasingly politicized process, the Fisheries Daniel. 1 . 17 oblast ). Other government bodies, however, have gradually - krai oblast 466 administrations then distribute the quotas Guide , krai pages (Theragra chalcogramma) (Theragra ). Instead of having the fi nal for oblast tinro Conservation and , located in Vladi- 68 krai 1990 governments s the com- ( . vniro tinro ) in and

FAO 

OVERVIEW OVERVIEW  Development. Newell, ment officers in everycountry may encounter suchhazards, violations. Although seagoing fi sheries scientistsand enforce- the rigor of scientifi c shing fi programs, orsimply ignoring able seafood products in records,return for easing falsifying enforcement officers are often offeredalcohol,cash, or valu- for fi sheriesis weak. Underpaid (orunpaid) scientistsand Weak enforcement. Hdix for a listing of the quotas for major species in reduceinas discussed theharvest, sidebar; illegal see appen- highest bidder in an effort to increase taxation revenue and tobegan auction off many of the most valuable quotas to the criteria described above. In panies based on theofmix changing objective and subjective oblast their interests. confl Local icts ofinterest also occur when months each year in Moscow to protecttrying and enhance the heads of surprising that the top executives of fi shing enterprisesand to heavy lobbying in the allocation process. Thus, it is not tive use of the criteria and forrules each category, have led egories or even creating new special quotas, and the subjec- Russia’s own fleet. were reduced as pressure on stockRussian grownhas from years, in exchange for reciprocal fi shingrights. These quotas hatcheries or scientifi c vessels) or, frequentlyless in recent exchange for payment in orcash kind (for example, salmon waters. These quotas are provided to foreign governments in ies agreements allowing foreign vessels to fi shin Russian In addition, separate quotas are set aside for bilateral fi sher-     there were four forbasic types domestic users: system. Prior to the introduction of auctions in late without vessels. awarded from Moscow to individual firms, including rms fi Special quotas of considerable value are periodically also from ties family to political toleanings outright bribery. formal Less criteria, according to industry observers, range to the The possibility of moving allocations between quota cat- Different of types quotas complicatealso the allocation other functions needed by the industry. fi sheries science,and enforcement, search-and-rescue, cies in(usually Moscow). The fees ostensibly support Paid (commercial) quotas, sold through designated agen- speciescertain to establish an industrial quota. devised by scientists to exploresystematically an area and The scientifi c quota: shing according fi to a program scientist on board to monitor the catch. and analyze sensitive generally areas closed to fi shing, requiring a The quota, control-catch located typically in biologically free quotas; usually of charge. The industrial quota, constituting the majority of all J. and krai 2004. or krai oblast oblast administrations divide quotas between com- 69 McKinleyville, and The Monitoring and enforcement of quotas , and any record of fi sheriesviolations. krai Russian fi shing departments spend several 2001 , the governmentRussian Far CA: East: Daniel 2000 2001 . , A & Reference Daniel. its economic zone from 16,000 in 2000 to 12,000 tons tons 12,000 to 2000 in 16,000 from zone economic its fi for in quota salmon Japan’s shing lowered also Russia fi to 2000. in 17 allowed be versus sh will ships Chinese 12 only tons; metric 9,500 to 2000 in tons 17,000 from pollock. and shrimp, crab, species: demand highest the for ily primar- quotas, all of percent –10 5 off auctioned ment govern- the 2001, In quotas. government-to-government resource. the from, revenue and over, control of loss a fear who companies, and associations, fi governors, shing RFE from resistance uniform with met was quotas auction to decision The accountability. industry increase also will system the maintains ernment gov- federal The revenue. itself guarantees government Russian the fi from quotas, for payment rms initial ing species. select of fi quotas foreign for bid rms and Russian whereby auction, quota the for guideline a 1010, No. decree adopted Moscow 2000, December In fi auctions Moscow quotas sh auctions are unlikely to protect fi protect to sheries. unlikely are auctions categories. quota other in crab king for allocation total the of 15percent tons, metric 6,500 almost was 2001 in allocation quota ( golden and ( red For cucumber. sea and urchin, sea crab, king particularly species, some for high unusually are Scientifiquotas c confl interest. of obvious an ict poses This revenue. earn they which from scientifi quotas, c receive also agencies enforcement and monitoring Many product. export and to scientifisimply fi the cial body by c sh fi used or rms commer- to sold often are quotas The abused. widely are quotas, year’s following the determine and levels stock research to institutions and agencies to given quotas, signifi These cantly. allocations quota these cut government the 2002, in system; auction new the under unloaded. is illegal) it of (much catch the where ports, foreign at made then repayments with backers, foreign from loans with fi quotas Russian buying some are rms that surfaced tons. 260,000 at less, percent 9 nearly held meanwhile companies Russian year. previous the than higher percent 20 tons, 241,000 to 2001 in quotas of share their increased companies foreign increase; companies foreign individual for quotas while continue to expected are countries for reductions These 2001. in The auction system seems destined to replace replace to destined seems system auction The — JN — the enforcement, and monitoring vigilant Without reduced be may quotas Scientifiresearch and c 71 466 Paralithodes kamtschaticus Paralithodes Russia reduced the Chinese quota for pollock pollock for quota Chinese the reduced Russia 74 Guide P. brevipes P. pages ) king crab alone, the scientifi the c alone, crab king ) for Conservation w e i v r e v O ), blue ( blue ), 73 Reports have have Reports 75 P. platypus P. 70 By requir- By  ), ), 72

and 51

OVERVIEW OVERVIEW Development. Newell, 52 1990 of independent firms in the shing exploded fi industry in the industry. of private and struggles The emergence quotas. other for markets, fi nancing sources, and,vessels aboveall, constituents now openly and aggressively compete with each rights between fi shingcompanies in different regions.These ever, regional meetings are marked by confl icts over shing fi krai marked by common positions and actions by each made up of government and industry representatives from resource, and the enforcement of fi rules.shingCouncils are ScientifiCouncil includec-Industrial quotas,the status ofthe borderlands with little recompense. asked ally to serve in difficult and remoteareas ofthe Russian of bribes to appease the Border whoseService, troops are usu- as an effort to fi nd a source ofunoffi revenue cial in the form deed, some industry participants have portrayed the takeover evidence corruptionsuggests nothas signifieased cantly. In- and motivation remain,still and anecdotal fi sheries enforcement.Issues ofcompetence into the Border unitsService involved in bvod personnel have been integrated recognized, however, and many Glavry- guards’ inexperience seems to have been was only generally Thefamiliar. border authority over an activity with which it ofcases an outside entity receiving decisive Fisheries Committee and one of several impingingfurther on the power of the transferred to the Federal Border Service Glavrybvod’s enforcement functions were violators, leading to confusion. In zations tobegan compete for capture of alongside Glavrybvod. The two organi- gia), tobegan patrol and pursue violators Environmental Protection (Goskomekolo- sion of Committee the onnow-defunct Inspectorate (Spetsmorinspektsia), a divi- Another organization, the Special Marine ports and unpunished fi shingviolations. during the Glavrybvod faced has growing criticism cow, the traditional enforcement agency, aseriousthis makes particularly problem. be achieved by violating the formal rules, and their employers that onlysuccess can widely held view of fiRussian shermen doned by the government, along with the the citizens’Russian sense of being aban-

Central Central topics at sessions of the biannual Far Eastern toSimilar the Committee in Mos- s in support of regional industry. More recently, how- s. Not only did former state enterprises and fi shing oblast  T S A E R A F N A I S S U R E H T J. and 1990 2004. krai s for ex- unregulated . Previously, council meetings were often McKinleyville, The Russian 1998 , rfe Far CA: The number oblast East: Daniel s and kolk- � ������� ��������� A ������� �������� ����   ful, is credited to several factors: many enterprises, many of them at least temporarily success- in order to survive. The formation and transformation of so to adopt new products, production techniques, and markets and transformed old ones. In either they case, were forced tive control, Cut loose from subsidies as well as from central administra- 598 data from firms activein the “incomplete assessment” that found more one than thousand but a myriad of new ventures appeared. One source cites an hoz & Reference ��� infrastructure weakness. infrastructure problems otherplaguing businesses,Russian such as ments to foreign ports sheltering the enterprise from Economic activity mostly on the high withseas, ship- forproduction. high-value appropriated from state concerns and quickly modernized Key moveable (vessels), assets either imported or easily enterprises were active, a tenfold increase since es break free from their controlling umbrella associations, Daniel. �� ������� �������� ���� 1999 ���� ������ ����� ���������� ����� ���� ���� ��� �� ������ ������� ������ ���� ��� rfe ������� ������� �������� indicateOblast alone that in Sakhalin some industry participants formed new companies 466 ���� � ��� ���� ��� ������ �� rfe Guide �� ���� ����� ��������� ���� ������ ����� fi shingindustryin ������� ��������� ���� pages �������� ��� �� ������ ����� ������ ������ ����� for ��� ��� �� ���� ���������������� ����� ����� ���������� ��������� ����� ������� ������� �������������������������� ������� ���������� ��� ���� ������� Conservation ������� ������� ���������� ��� 1996 ���� ������ ���� . 76 Offi cial 1990 . 77 and 

OVERVIEW OVERVIEW  Development. Newell, home to newseveral successful companies, many large fi shing active,fully and relatively free of legal confl icts. On Sakhalin, former state enterprise in Primorsky, byor legal actionsparalyzed and lack of quotas. One large and in havescandal either been divided into smaller firms companies, over vessel ownership and charters. The Primorskylargest highest degree of violence, shareholder disputes, and scandal open confl ictallocatingin regional quotas. Primorskythehas on the fi shingindustry, has shown moreand stability less oblast of large former maintaining state fi shing enterprises foran of newthe successful companies. local, federal, and foreign connections have headed up most world. Previously industry executives well-known with useful tory attention,and tax as well as attention from the criminal Lower company profi alsoles helped avoidRussian regula- could tailor their workforce to their firm’s developing needs. offering better compensation and greater independence, and couldalso hire the most talented frommanagers older firms, and distraction of supporting They a social infrastructure. least in the first years of reform. firms were often advantageousin foreign attracting credit, at enterprises. Finally, the familiarity, visibility, and size of these force, and broad connected base typically tax to former state favorable terms were large work-the social infrastructure, allocation. Additional arguments for receiving quotas under for their huge outmoded fl — amajor criteria for quota eets companieshad a typically long history of receiving quotas Quotas were easier to obtain, because these particularly Moscow bureaucrats and especially among regional offi cials. enterprises and their executives was likely to be higher among over their smaller new competitors. The infl uence ofthese the close of the decade as at the beginning. regions the almost all same atfor seafood production—were leading est companies in Primorsky and Kamchatka—the and inchange the industry, it is ironic that foreign participation, alongside nies emerged as industry leaders at an early stage, often with however, On Sakhalin, Kamchatka. newly formed compa- dominated the industry in the former state enterprises and large proliferation of newsmall companies in the industry, large Although every maritime   It is difficult to themeasure and advantages disadvantages However, new firms werefree from the nancial burdenfi The large former state enterprises held advantages certain seafood seafood products to international markets. limited infusions of capital and expertise, high-quality Foreign fi nancing foranthatindustry could deliver,with ods and markets. least passing knowledge of international production meth- Cadres of experienced fi shermenand executives with at J. or 2004. krai vbtrf . Kamchatka, the . Kamchatka, McKinleyville, and Dalmoreproduct, became snarled The Russian rfe oblast oblast 1990 kolkhoz kolkhoz s in Primorsky and and most heavily dependent nbamr es. Given the upheaval krai organizations Far CA: ceo , remains intact, has seenhas a s of the larg- East: Daniel A & Reference Daniel. ��� ������� ������ ������� ��������� ������ ��� ����� �� ��������� � �� ������� ��� ������ region in the is apparently more ubiquitous in than any other in Sakhalin mostly by operatorssmall secretly delivering crab to Japan, unhappilylocal fi affecting shingcommunities. Illegal shing, fi kolkhoz �� ��� � ��� ��� ������ �������� ��� ����� ������� ���� ������������ ���� ����� �� ������� ������� ��� ������� ����� �������� ���� ������ ������� ��� ���� ��������� �������� ���� ���� �������� ��� ��� ������ ������� � � � � � ������� ������ ������ ������ ������ ������������� ���������������� ���������� �� ��������� �������� ����� ��� ������� ����� �� ������� ���� �������� ��������� ������ �������� ����� ������ ���� ������ �������� es have defaulted on debts and declared bankruptcy, ��� ��� ��� 466 � ����� ��� rfe ��� ������� Guide ��� ��� . ��� ������� ��� pages ��� ��� ��� ��� for ��� ��� ��� ��� Conservation ��� w e i v r e v O ������ ��� ��� ������ ��� ��� ��� ��� ��� ��� ������ ����  ���

������������������������������������������ and 53 ���

OVERVIEW OVERVIEW Development. Newell, 54 ( for the most abundant commercial species, Walleye pollock reflan ectsincreasingly severe resourceconstraint, especially foreign capital and redirected operations. The latest trend tion in the early continued to in fall the catch dropped by again about of chartered European ships and modernized vessels,Russian million tons duringannually the next and lack of capital. recovering After to a catch of almost products, but fromalso the combined of effects flan aging eet of Soviet demand and the need to reorient the fleet to new (see fi g. from fl ectedin levels.harvest declining The transformation and growing crisis in the fi shing sector was re- levels. harvest Declining Theragra chalcogramma

(both legal and illegal) to Japan and the United States. States. United the and Japan to illegal) and legal (both harvest crab King entire the almost exports Russia year, Each prohibited. were subzone Kamchatka-Kuril the throughout catches when 1950s, the with situation the compare TINRO in experts that dramatically so fallen have populations better; no faring are crab King 1999. to 1985 from catch RFE overall of terms in catch pollock the shows 1.3 Figure whole. a as dustry the of in- fi also but Sea shing fi Bering and sheries, Okhotsk of Sea the of only not lifeblood the tonnage total pollock—by species. for scientifi of quotas c allocation the in evident is seas these in species marine of multitude and diversity The Japan. and Korea, China, in popular cies ( ( cucumber for also high is Demand salmon). pollock, (sturgeon, roe of variety a and salmon, crab, pollock, ( sardines ( saira as such market, Soviet the for harvested traditionally species than rather export for species high-demand supply fi now Russian companies shing waters. fi these in States heavily sh United the and Korea, South China, Japan, of major fi other nations The shing fi productive shery. most world’s the remains Seas, Yellow and China, East China, South the as well as seas these encompasses which Pacifi region, c northern the exploitation, extensive Despite Japan. of Sea and Sea, Bering Okhotsk, of Sea the RFE: the of seas major the in harvest annual its of percent 70 to 60 catches fi Russia largest nation, shing seventh world’s The resource A global Cucumaria japonica Cucumaria 4  . 6 Data for salmon harvest indicate relatively stable popu- stable relatively indicate harvest salmon for Data Walleye for quota the reduce to continues government The 1 T S A E R A F N A I S S U R E H T J. million tons in . 3 ). declineThis resultedfrom thepartially collapse 2004. Sardina, Sardinops Sardina, Apostichopus japonicus Apostichopus 1990 2000 McKinleyville, s was temporary and correctable with The ), and other endangered sea delica- sea endangered other and ), During the ). Meanwhile, the harvest annual 1990 and to 2001 ), resulting in the overharvest of of overharvest the in resulting ), Russian 2 350 . 3 . trepang million tons in 82 1990 ), football sea cucumber cucumber sea football ), The initial catch reduc- , Cololabis saira Cololabis 000 4 rfe years with the help s, the chaotic , or Japanese sea sea Japanese or , tons in catch plummeted Far CA: 1999 ) and and ) 1994 East: Daniel and 3 79 80 78 A Russian, Japanese, and U.S. waters, making the sustainable sustainable the making waters, U.S. and Japanese, Russian, poaching. salmon of exposé an for 69, – 11, 368 pp. chapter See declines. stock to lead will this believe fi and specialists problem, sheries huge a remains roe, for especially poaching, Widespread vest. har- total of percentage small a represents salmon Hatchery worldwide. caught salmon wild all of percent 25 roughly for accounting salmon, wild primarily harvests Russia harvests. salmon king and chum, coho, for true is degree, lesser a to pattern, same This year. the for harvest RFE entire the virtually sockeye, of tons metric 16,354 imported Japan 2000, In king. and chum, coho, sockeye, on focus fi operations driftnet shing domestic and foreign Both remainder. the up making king and coho, sockeye, chum, with catch, salmon total the of percent 75 about for account salmon Pink tons). metric (185,374 1996 in than higher and 1998, and 1997 in as same the about tons, metric 244,076 was harvest salmon 1999 The lations. operating at only in mid- materials from a Fisheries conference Committee–sponsored almost declined even more precipitously fl than eet production—by most blatant signs of trouble. Production by shoreside plants crab stocks, and andan aging decrepit fleet are onlythe other of areas the more than tion of vessels, more than deteriorate. In Primorsky, the area with the concentra-largest crab vessels, most of the expected to continue. 1996 of the other major commercial species, crab,king inpeaked fi same the for zones. shing quota crab 2001 the shows 57) 1.18 Map (p. Sea. Bering western the and Okhotsk of Sea northern the for are quotas overall largest The Pacifi region. c northern the of portion Russian the fi in 2001 for zone shing activities. illegal own their curtail to work and seas these protecting in Russia assist must Pacificountries c Northern birds. sea and lions, sea whales, smaller of host a do fi the as on depend sheries, Sea, Bering and Okhotsk of Sea the throughout feed and breed which whales, Gray concern. economic and ecological global of fi of use resources sheries & Reference A sharply declining overall catch, overfi shed pollockand With the exception of imported or refi t pollockand Both Alaskan pollock and salmon migrate to and from from and to migrate salmon and pollock Alaskan Both -JN by quotas cephalopod and pollock shows 1.1752) Map (p. Daniel. (see fi g. 60 1999 percent between 17 , shoreside plantsfacilities are and ship-repair years old in 1 . 4 ) and saw a steep decline in 466 20 rfe Guide – . 30 percent of capacity. Fishing ports, pages rfe 1999 65 1990 fleet continuedhas toageand percent of the fi shing ships were . for 83 and The situation is in similar Conservation 1994 . 84 According to 2002 , which is 81 and 

OVERVIEW OVERVIEW  Development. Newell, elements in the fi shingindustry crisis. interests, and becomehas this one of the most controversial pointedalso torole the harmful allegedly played by foreign earlier.discussed Many government and industry leaders have corrupt system of quota allocations and fi sheries enforcement fi sheries scienceand the inefficonfusing, cient, and sometimes Additional difficulties have included the underfunding of quotas for some key species, especially pollock and crab. to shore plants), and, by the late system,catory tax outdated technology (this applies especially of problems:fundamental lack of domestic capital, a confis- interference in attempts to stem capital fl ight. foreign fiand nancing, additional scrutinyand bureaucratic dercapitalization, increasedunderutilized assets, reliance on mortgaged) contributedhas to the downward spiral of un- and pollock vessels, many of which were chartered or heavily the lack of capital investment in the industry (outside of crab represents a fractionsmall of the industry. Most importantly, aged to accumulate substantial wealth in overseas this banks, and pollock boom years of the early and mid- that suggests some entrepreneurs who participated in the crab creditors, and bankruptcies. Although anecdotal evidence ofvessel arrears, cases by arrests well-publicized tax unpaid try’s fi nances, however, has beenbydramatized frequent and catches, revenues, and profits. The fragile state ofthe indus- difficult to obtain,given the ubiquitousunderreporting of shore plants, and powerful newer vessels. pensive foreign and, cars much less often, new or refurbished transformation is the fi shing rms’ fi luxuriousoffi ces ex- and residents, the only obvious physical evidence of the industry’s well as the industry’s burden. Besides employing many local grossly distort measures of fi nancial flows to government, as scrutiny. Unoffi cial payments to regulatorsandcollectors tax seamen, placetaken has offshore or is otherwise hidden from activity, including substantial amounts of compensation to governments is difficult to quantify. Much ofthe industry’s formation in the Kamchatka. industry, as was of the population in Primorsky was employed by the fi shing the second of half the fairly constant throughout the maritime of areas the ers employed by the fi shingindustry has remainedandlarge 1990 in the number of employees in all in thefall however, must be seena backdropagainst of an cent of its workforce between ment, have seen ship turnover by curtailed a factor of three. formerly bustling centers for repair, supply, and transship- In summary, during the Reliable data on company profits theduring The economic significance ofthe shing fi industry’strans- aAs result, the J. and 2004. 1996 rfe 88 population and a roughly . 87 28 McKinleyville, Considering thethis, percentage of work- 1990 The rfe percent and in Sakhalin, s to local communities and regional fi shingindustry lost roughly 1990 Russian s, for example, roughly 1990 1990 s the industry faced a range 1990 rfe and s, lack of adequate industries between 1996 26 Far CA: percent decrease . 50 86 1990 This decline,This percent in 1990 East: 8 percent Daniel 18 s man- 30 percent s is also rfe per- . In A 85 & Reference Daniel. States, were more active in the fi shingindustry in the ments, especially from Japan, Korea, China, and the United interests. of foreign The role reliance on foreign credit. For numerous reasons, much of industry are almost nonexistent, resulting in widespread at ceased many.virtually fiRussian nancial sources forthe the ing. Numerous shoreside plants, which operated throughout ment of products; thus, portsRussian are inactive and decay- foreign ports for repairs, crew and changes, even transship- use large volumes of quotas to be economically viable. debt loads meanthas they must be operated effectively and however, coupled with the vessels’ higher operating costs and cient those than of the Soviet fleet. The removal of subsidies, most these newcases, and refitted arevessels much more effi - States for crabbing, shrimping, operations.and long-lining In vessels have been refitted in Korea, and China, the United declined, by shipowners.Russian Dozens of Russian-built bought from the United States, where crab stock sharplyhas crab catcher-processors have been waters. State-of-the-art through long-term bareboat havecharters, appeared in shipyards of Norway, Spain, and Germany, and fi nanced ing vessels. Enormous modern trawling fleets, builtin the rfe North America, and Europe. fi shfrom the as end markets. Crab, salmon, pollock, scallops, and bottom- centers for reprocessing and transit of Russian seafood, and on import market, the largest in the world, has been dependent supply of provisions for vessel operations. Japan’s seafood to joint ventures, seafood trading, fl eet modernization,and has ranged from fi shingwith foreign fl eets inRussian waters anythan other sector of the Foreign interests have been key in transforming the The flRussian eet, both oldand new,comehas to rely on rfe fi shingindustry, especially its most valuedasset, sh- fi rfe — capabilities. own our on rely we basically fi to profi alternatives, trying mutually table nd investors, foreign with work to continue we although And security. food Russia’s in so less and villages, our of life the in or resources, our of preservation the in interested least the in not are foreigners this doing In market. tional interna- the to products seafood supply and resources biological marine Russia’s to access get to goal: one with fi Russian industry the shing enter investors eign for- that shown has years recent of experience The output for several decades. China and Korea serve as Regional Press Regional ( 2001. March in Committee Fisheries Federal the of head appointed was Nazdratenko 1999. 9, fi December on hearing sheries, government a at speaking Krai, Primorsky of Governor then Nazdratenko, Evgeny in Soviet times, have deteriorated, and work has 466 rfe Guide areto familiar importers throughout Asia, , December 1999 –January 2000.) –January 1999 December , pages for Foreign companies and govern- rfe Digest of Fishermen’s News and and News Fishermen’s of Digest economy. Conservation w e i v r e v O 89 This activity 1990  rfe

and s 55

OVERVIEW OVERVIEW Development. Newell, 56 operatorsRussian over the terms of these transactions. atic and led to confl withicts foreign entitiesand between Payments of loans and charter fees have often been problem- in of these new and chartered vessels have operated successfully with the new vessels and their technology. Although many are satisfi edandas the Russian fi shermengainexperience tended to revert to the sideRussian as fi nancial obligations orchartering mortgage obligations. Operational control has vessel, and foreign entities firetain control nancial through pany. Foreign occupy typically keyspecialists positions on the operational management and marketing by a foreign com- erate them. Arrangements, however, commonly include some companiesRussian based in the vessels of tovarious types and Korea sold or chartered a large number of smaller used tween their than counterparts,Russian entered catcher-processors, with capacities roughly three times greater under conditions. similar Approximately fifteen large crab A fleet twelveof new longliner arrivedvessels from Norway infusionlargest of foreign capital the industry had ever seen. from Norwegian, Spanish, and German shipyards—the pollock supertrawlers were delivered under bareboat charter ment. In the first half ofthe Foreign-built vessels brought the greatest foreign involve-      factors to peculiar the industry: tional marketabrupt was particularly and widespread due to change, thesimilar fi shingindustry’s moveinto the interna- foreign technology. Although other industrial sectors saw reorientation toward foreign markets, foreign fiand nancing, fi shing rms fi in earlythe in the the profi t theduring boom years of craband pollock shing fi rfe

These foreign flvessels typically they Russian ag, and fl particularly hungry forhungry particularly new product sources. to waters,Russian and international seafood marketers of their ships, or enthusiastic particularly to send vessels fi sheriesand therefore eager forparticularly new buyers Foreign businesses by affected the decline of productive States. foreign Korea, partners: Japan, Europe, and the United comprising the throughout much of the world, including those countries The decline of productive fi sheriesand access to fi sheries international markets. The established value of many riers inhibiting foreign involvement in other industries. Insulation, for particularly export activities, from the bar- other business conducted in the past. United States, forged during joint fi shing operationsand Close international contacts, especially with Japan and the  waters, their combined impact depletedhas resources. 1990 1990 T S A E R A F N A I S S U R E H T J. s ended up offshore. The proliferation of new and 2004. 1996 rfe from the United States. Japan Likewise, McKinleyville, fi shingindustry’s major potential The 1990 rfe 1990 fi shingcompanies. s was accompanied by a radical Russian rfe s, approximately fi fty new rfe effectively own and op- seafood products on rfe fi sheries be- Far CA: East: Daniel A control over flcash ow,and therefore increase security forthe marketing rights to fi sh products.These rights confer some and provisioning beenhas closely connected with obtaining version of Brighton Beach’s commercial strip. fiRussian shermenand shuttletraders and resembles aKorean one entire area of town near “ delegations of fiRussian shingindustry entrepreneurs,and ofdocks are dry full vessels,Russian business hotels host ties, comehas to resemble an offshore portRussian city: the 1990 be delivered directly to the flRussian eet at thesea. During then stock up with provisions from these foreign ports to ports. Russian-flag vessels orthose deliveringtheir product export seafood products directly from the tohigh seas foreign sian ports between voyages, but almost uniformly ship their locations.vessels are more Russian-built likely toin Rus- call Even crew havechanges often been done at sea or in foreign sian operators to keep foreign-built vessels out of tions and ineffi cient port procedures,have ledmany Rus- indicate the trends: revenues from export shipments roughly reported export shipments. Offi cial gures, fi however, clearly in the measure the true quantities of seafood exports from the and crab. king pollock export: and illegal Legal seafood. widely through accessed as wellillegal, as legal, exports of were close at hand. Unfortunately, these markets have been of sales proceeds difficult. Fortunately, PacifiRimmarkets c sian buyers. The business environment made the collection to offer the extended terms of sale required by most Rus- Soviet marketing channels. Producers lacked the fi nancing consumersRussian was accompanied by a breakdown of old longer viable. The steep decline in the purchasing power of simply had no alternative since the domestic market was no a preferencecalculated for higherproducersRussian returns: eign themarkets after collapse of the subject to and harsh taxes currencyRussian controls. and other methods, a mechanism to accumulate notfunds ners. arrangementThis offers,also through transfer pricing directly, and toalso check on the sales of other foreign part- to learn about these markets firsthand before enteringthem to a foreign partner is amarkets, rights-of-sale assigning way seafood executive, initially inexperienced in international sia and the dangers of For taxes. Russian the aspiring Russian whichstake, the ofcarries vagaries shareholder rights in Rus- profitability usually substitutes for a moretraditional equity gins or commissions on the sale of product. approachThis to helpalso the fi nancing entity to make a profithrough mar- t er legal instruments lack suffi cient power. Marketingrights fi nancing entityin an environment whereand mortgages oth- & Reference Foreign fi nancing of vessel acquisition, refi ts, repairs, and High duties,taxes along with burdensome regula- The of dramatic shift Daniel. s, Pusan, Korea, nearby and with good capabili- service 1990 s because of the extent of unrecorded and under- 466 Guide pages rfe seafood producers toward for- ulitsa for (street) Texas” caters to Conservation ussr did not represent It is difficult to rfe ports. rfe rfe and 

OVERVIEW OVERVIEW  Development. Newell, bers and large rectangular berspots inand thelarge rectangular early forcanned European markets. With theof arrival U.S. crab- conical pots. Most Japanese-style small of catchthis was to shipments, fi illegal and shing, underreported revenues. Prior export sales, and the one most associated with unrecorded ing a higher return to the vessel owner. to their product, the trawlersRussian are potentially provid- cessing the frozen fillets onboard,and thereby adding value supplier of relatively pollock high-value fillet blocks. By pro- blocks of frozen fillets, hasmade Russia a majorinternational of several large trawlers,Russian which primarily produce ofarrival the European supertrawlers, along with the refi tting the value of pollock, the most abundant percent since low-value species, a significant part ofthe Soviet catch. was achieved in bypart terminating or decreasing fi shing of rise in export revenues in the face of declines large harvest and another 40 by doubled from the late percent decrease in volumesharvest during the fi rst period, 1990 1996 King crab King is the other major vessels’Russian pollock catch fallen byalso has about ������� ��������� J. � , the few . 2004. 90 This shouldThis be viewed in the context of a roughly 10 0 1988 ������� �������� ���� percent drop during the second. The sharp McKinleyville, rfe , but dropthis beenhas offset by a rise in The companies fi shing forking crab used 420 � 1980 km Russian ������� �������� ���� s to ������� ������� �������� ���� ������ ����� 1992 rfe � � seafood contributing to , and then doubled again � ������� ��������� ���� �� ���� ����� ��������� ���� ������ ����� rfe Far � CA: 1990 �� species. The � East: s, alongside ���� �������������������������� Daniel # ������� ���������� � ��� ���� ������� ������ ����� ������ ������ ����� ���� � 50 A ���� ������ ���� & Reference � Daniel. estimate for red and blue crabking may represent the most used to avoid income reporting or quota limitations. This fer pricing, misidentification of species, or other techniques not account for the underreporting of revenue through trans- map from implied value of shipments illegal of red and blue crabking overharvest fiand illegal shing. Based onthese estimates,the crab) caught in the most abundant and lucrative crab species (red and blue king data shows that about rather from than the officatch cial and export data. and the United States, the two major importing countries, levelsharvest by extrapolating from the import data of Japan been very high. thus incentive for fi illegal and shing unrecorded exports has compared to operations involving pollock and other species; livered live, chilled, or frozen and is potentially very lucrative fi g. more than from about catcheslegal and illegal quickly increased. The catch rose the deterioration of monitoringRussian and enforcement, As aAs result, informed observers estimate crabking Russian 1 . 1 4 1996 . 18 ). Using a relatively boat,small crab king be can de- �� ������ ��� ���� � �������� ������� ����� ��������� ���������� ����� �������� ��� ���� �������� ����� ����� ). fiThis gure represents overharvesting only; it does to 70 15 ������ ������ ������ ������ ������ ������ ������ ������ 466 ��� ��� ��� ��� ��� ��� 2000 , , ���� ��� ���� � ��� ��� �� ������ ������� ���� ���� ���� ��� 000 000 Guide ���� metric tons per year in the late metric tons per year in the late �������� is about ���� pages rfe �� � ���� �� � �� ��������� ����� ��� ����� �� ������ ��� ����� ����� ���������� ����������� ������������� �������� ���������� ��� �������� 43 between percent of catchthe ofactual the ���� for u.s.$180 ������ � � ���� ���� ���� ���� ��� ��� ��� ������� ������� ���� Conservation 1996 ��� ����� ������� ���� �� ��������� � ����� w e i v r e v O million per year (see and ���� 2000 ���� represents ���� 1980 1990 91 This This ����  ���� s to s (see

and 57

OVERVIEW OVERVIEW Development. Newell, 58 international transactions, including unreported product de- control of operations, especially of marketing channels. But fiRussian rms have led tomany cases of substantial foreign stock into decline. Furthermore, the fi nancial obligations of with ineffective monitoring, pushedhas pollock and crab greatly improved quality. But effi harvest ciency,combined effisharply harvest raised ated by foreigners—has ciencyand installed, and often temporarily oper- technology—financed, terests in the complex and sometimes roleparadoxical of foreign in- resources and to who all rely on it. represents a serious threat to one of the crab exports from Russia. Such overharvesting, however, have benefi tedgreatly in the short termfrom live illegal Japan’s northern ports, processing plants, and entrepreneurs situation with exists other crab species, but on a smaller scale. significant exportsseafoodfrom illegal the

Developments in the crabking and pollock fi sheries reflect suspected of corruption, including Dalmoreprodukt President President Dalmoreprodukt including corruption, of suspected daily Russian the articles, investigative of series a In Russia. in fiindustries shing corrupt most the of one claiming region a and Sakhalin of capital the Yuzhno-Sakhalinsk, in directorate Service Border Federal the of head Gamov, Vitaly of 2002 May in sination assas- the for responsible “mafi This believed is a” violence. even and forgeries, document sophisticated schemes, zling embez- fi complex use that established rms of composed “fi a to refer mafi sh offi and increasingly a” cials researchers, region. Kuril northern the in poaching of suspected trawler Russian a sank and shot guards border Russian 2000, In Korea. South and Japan in waters territorial Russian from catch illegal their sell and regulations, tax and quotas ignore Russians. are rules antipoaching country’s the violate who those of percent 95 Service, Border Federal the of department tion protec- marine the of fi chief deputy Serzhanin, rst Vyacheslav to fi foreign according blame to rms, efforts Russian crafted sea. open the on fi the traded with illegally sh place takes usually which export, illegal for reason major a is ports Russian in times clearance long and dues harbor high to leading tape red Bureaucratic alone. Japan fito exports sh unrecorded in million U.S.$500 estimates Committee, ies billion. U.S.$2.5 top annually zone economic fi exclusive illegal its in from shing losses Russian estimates forces, marine Service’s Border Federal the of commander Naletov, Innokenty Admiral fiIllegal export and shing  These operations appear well-organized: journalists, journalists, well-organized: appear operations These T S A E R A F N A I S S U R E H T J. rfe 2004. fi sheries generally. New shing andfi processing 94 Russian trawlers often operate without a license, license, a without operate often trawlers Russian 92 Evgeny Nazdratenko, chairman of the Fisher- the of chairman Nazdratenko, Evgeny Izvestia McKinleyville, The named individuals in the industry industry the in individuals named Russian rfe ’s most valuable rfe 93 Far CA: . A similar Despite well- Despite 95 East: Daniel A illicit, trade arrangements. arrangements. trade illicit, sometimes unusual, for way the paved have Russia and States United the between arrangements lease boat and Charter ing. poach- for revoked licenses salmon their fi had vessels shing fi Japanese illegal seven for and million shing U.S.$2 mated fi were Japanese esti- shermen an alone, ned fi 2000 June In permitted. than larger much were that volumes harvest concealing to admitted ships three of captains the after Okhotsk of Sea the in poaching for million U.S.$2.5 pay to fi Korean South shing large a agreed rm 2000, fi May In caught. fi been U.S. and also have rms Korean, Chinese, Japanese, levels. highest the reached has corruption that lation fi largest specu- RFE’s shing the of raising one is rms, fi produkt problems.” some “resolve him help to Committee Fisheries Federal and government the in people” of “group a to bribe million U.S.$1 a gave allegedly who Didenko, Yury The United States, Japan, and Korea have seen all major lessons from the region’s neighbors are important to consider. reform. Industry ment of fi sheries resources. foreign interests and reformingfundamentally the manage- ing the facilities. It is no surprise that proposalsRussian for improv- and regulatory practices, along with deteriorating and markets. It is largely the result of customs, taxes, Russian is exports, shift notthis stimulated by the logic of geography crew rest, and recreation) to foreign ports. Unlike theto shift activities (shipbuilding, repair, provisioning, transshipment, to the edly greaterfar rents, both public and private, have been lost abroad, and reduce governmentRussian rents. Undoubt- to hide income, accumulate personal and corporate wealth liveries to foreign ports, have allowed entrepreneursRussian made. been have arrests Some documents. export offi inspecting customs cials Japanese by vigilance increased in resulted has example, for Sea, at Security for Department Japan’s and Service Border Federal the between efforts ing antipoach- on cooperation of memorandum A bilaterally. problem the address to efforts limited been also have There are.” there corruption of sources more the are, there crats bureau- more “the it, put cynically Stepashin Sergei Chairman Chamber Audit Duma State As agencies. enforcement within corruption faces and manpower and money both lacks but & Reference The Russian government has tried to address the problem, problem, the address to tried has government Russian The companies: Russian to fi limited Illegal not is shing — JN — Daniel. rfe rfe through the wholesale of shift industry support fi shingindustry ofteninvolve the recasting role of As Russia As grapples with its fi sheries crisis, 466 Guide pages for Conservation 96 99 Dalmore- rfe 97 98 port and 

OVERVIEW OVERVIEW  Development. Newell, efforts, efforts, but such attempts could burden further an already The fi shingindustry appears to be a goodcandidate forthese ties, especially those that Russia’sharm national interest. establishing the rule of law action and taking on activi- illegal future of Russia’s fi sheries. weak monitoring and enforcement are so troubling for the isThis one reason why the unreported catches allowed by maya stressedaffect stock more areadily than healthy one. andchange fi shing pressureinteract; thus, climate change are inexact sciences, most environmental maintain experts insharp the key area of westernin Kamchatka) more than In response, the government reduced quotas for crabking by average size of crabs caught, according to industry observers. tonnage through catch inpeaked while fi shingis tightly controlled, The asAlaska. Russian in is driven below level,a certain its recovery may be weak even son may be the essential one for the downturn are understill debate. Just such an irrevocable les- change, and other factors play in dramatic andthis enduring former level. The that part overfi shing, environmental sharply in the early fi shingin impactlasting unless the government reigns in uncontrolled United States may benefi tRussian stocks, buthave will no Adopting management successful techniques from the a moratorium on pollock fi shingin the Sea of Okhotsk. decline, Nazdratenko with andChairman othersfor calling able quotas. Meanwhile, Russia’s pollock stocks continue to cooperative fi shing, vessel and programs, buy-back transfer- sea through management measures, including limited entry, tions and increased the value of pollock products produced at United States signifihas cantly resuscitated pollock popula- tinue regionally and in Washington, D.C. In recent years, the Political battles over the fi shing quotas forthese speciescon- of these species have caused ferocious debate as to the cause. economic importance, in dramatic changes the abundance region, where pollock and crabking have held a similar and viability of the species, therefore, largely will determine the future health and unrecorded exports are included. revenue earned from the region’s fi sheries, if illegal shing fi past decade, pollock and crabking have delivered most of the ies is how to ensure long-termOver sustainable theharvests. national, political, and economic change. lems at all once while simultaneously confronting dramatic of these countries, however, have had to address these prob- users, and arguments over the role of foreign interests. None declines bitter in seafood harvests, confl icts between resource The Putin Administration is explicitly committed to Although stock assessment and fi sheriesmanagement Alaska’s once enormous crabking population declined The key ecological and economic question for J. 2004. rfe 40 percent in waters by andRussian foreign operators. 1996 McKinleyville, 2000 The rfe 1980 , declining slightly in metricannual , but with a significant drop in the fi shingindustry. In the U.S. Pacifi c s, and remains at a fraction of its 2001 Russian , with another cut (especially rfe 100 The status of these : once crabking stock Far CA: East: 2002 Daniel rfe . fi sher- 101 A & Reference Daniel.      as follows: summarized consistently advocated fi certain sheries policies, whichcan be in the Fisheries Committee, the Putin Administration has fiing illegal shing orcorruption. Largelythrough top offi cials harsh and complex regulatory regime without reduc- actually  policies: and the region. Following is a short critique of the proposed of the political and economic problems facing the industry policy measures and the deep, recalcitrant nature of many ness stems from a combination of and unrealistic ill-informed the problems they were designed to address. ineffective- This and thus have donebe—implemented, little to ameliorate Some of thesecannot policies have not been—indeed  Reform the quota system by each allocation tying to a shipyards.Russian quotas to those companies buying fi shing fromvessels Stimulate shipbuildingRussian by offering guaranteed sels in Streamline other regulations to avoid costly delays for ves- back to portsRussian for repairs and other services. Reform and customstax law to draw the flRussian eet the domestic market as opposed to the export market. or delivering to shoreside facilities or otherwise selling to mies, and reward, through quotas, those firms establishing increasing employment and other benefits to econo- local Encourage inshore,fi small-boat sheries development,thus countries to offset current resource shortages in the fiIncrease open-ocean and shing shing fi in zones ofother input costs (such as fuel). In any the case, systemaccess subsidies and are even potentially givendisastrous, current such operations are unprofitable for shipownerswithout in Soviet times, experienced industry participants say and foreign-zone fi returning to open-ocean as shing, Although some Moscow and regional offi advocate cials product for export, especially crab. port mayclearance be introduced for vessels all carrying approved electronic systems. transmitting Mandatory ship locations; vessels are required toand operate install and Murmansk tolovsk-Kamchatsky track catches and government introducedhas a system based in Petropav- Crack down on fi illegal and exports.shingThe illegal pay for quotas prior in full to fi shing. auctions of many valuable quotas, obligating the buyer to pursuing its goal of intransparency uct to the market.Russian The government began also available only to shipowners agreeing to deliver their prod- shipyards,Russian with quotas. Indeed, quotas certain are product to the marketRussian or by ordering vessels from benefi thet Russian economy, throughthe delivery of companies not and arrears companiesin tax that directly specifi c capablevessel of shing fi for it, and by rewarding rfe 466 ports. Guide pages for Conservation w e i v r e v O 2001 through open  rfe

and . 59

OVERVIEW OVERVIEW Development. Newell, 60    

company reliably can estimate what its fi shing quotaswill to continue operations and employees.retain Since no have the required orfunds are tempted to overpay in order sion of requisite vessels. Many established firms do not credits, “mafi a” money, or other sources)and the posses- depends on fi nancial wherewithal (whetherfrom foreign system. The purchase of auctioned quotas, however, transparent compared to the traditional opaque quota auctions, but they do seem to be relatively open and tion. It is prematurestill to the assess overall impact of most tangible enactedchange by the Putin Administra- Introducing auctions for the most valuable quotas is the ing economic viability. quotas would undermine the industry’s ofchances achiev- tors shipsto purchasein Russian-built order to procure ships. For the federal government to force opera- Russian costs and higher productivity new than Russian-built older, foreign-built hulls with lower fi xedand operating ies today previously, than and those that do are typically at high prices. Far fewer vessels are entering the shipyards generally produce inferior, inconsistent products cannot turn out competitive vessels. At present, Russian through quotas are doomed to as long fail as those yards Attempts to stimulate shipbuilding in yards Russian fleet activity. several foreign ports remain centers of offshore Russian ing operations requires and that to receive the proper licenses and permits for fi sh- ciesfi harass shermenin their attempts toearn alivelihood, complained recently that about seventeen separate agen- ofport procedures.streamlining Nazdratenko Chairman control ineconomic all sectors may work his goal against ress in Putin’sarea. this toefforts strengthen governmental ports,Russian there appears to prog-be little meaningful forAs reforming regulations to attract the fleet back to have failed in the past decade. investment in shoreside development projects in the these reasons, most attempts to attract foreign or domestic tempted to avoid by basing many operations overseas. For problemsand infrastructure that the offshore fleet has at- shoreside operation encounter will the same regulatory ucts on board, suffilacks cient quotas.In addition,any already large domestic fi shing eet,fl which processes prod- and related shoreside plants remains sinceunlikely the shoreplants. Widespread development of inshore fi sheries products be delivered to the marketRussian or to Russian advantages of international trade and insisted that seafood The strategy.realistic tion about the state of the the Soviet’s worldwide fi shing presence,and in despera- policy proposal seems to be based more on nostalgia for longer be open to Russia on an acceptable basis. in foreign andzones would dramatically changed has no  rfe T S A E R A F N A I S S U R E H T J. would suffer if government policy ignored the 2004. McKinleyville, The 102 rfe separate signatures. Russian ’s stock, on than a sober and Far CA: 103 102 rfe To date, East: This This Daniel fi sher- rfe A destruction of the capacity must be implemented. The alternative may be the and enforcement improvements, measures to reduce fi shing resource alleviate problems. will In addition to managerial difficult to envision how publicallocations ofthis shrinking sia’s problematic fi sheriesmanagement and enforcement, itis clashes between base and tax overall economic Given well-being. the recent and theirshoreside families, communities, and the region’s depends. The implications are deeply troubling for fi shermen ing power outstrippedhas the resource base upon which it to the foreign and domestic capital (mostly in the form of vessels) Ironically, the tory procedures to attract the fleet back toRussian ports. requirewill reformfundamental of duties, taxes, and regula- theExpanding domestic activity of Russia’s fi shing industry & Reference rfe in crab shipped to theJapan same in was virtually The total amount of caught liveillegally red and blue king problem of enforcement remains as ofunsettled late about seafood deliveries illegal to Japan, the essential despite discussions between andRussian Japanese offi cials foreign and vesselsRussian for violating fi andsheryrules in uted some which he at assesses treasury, but in fact have “brought Russia only losses,” auctions have not brought more money to the Russian benefits tothe government: saidNazdratenko Chairman purchased. Finally, even top offi cials questionthe nancial fi tion greater of harvesting volumes illegally those than have bought quotassmall at high prices with the inten- industry observers are convinced that some companies fi shing operations. Perhaps more still,challenging many planning and fi nancing of effi cientmaintenance fl eet and be until the auctions are held, auctions complicatealso the especially especially live crab. and informationexchanging about fitrolling illegal and shing export bytightening controls Russia’s neighbors, Japan, particularly to assist in con- to amake profi withoutt illegal shing. fi It remains for agement that offers stability and opportunity for operators and campaigns more officers, butalso on providing man- enforcementcost-effective depends not only on public disruptions to legitimate operators. In the end, successful, fitheylittle shing, take note oftheir increasingly costly ment agencies to try fulfilltheir mandate to end illegal filating illegal shingcontinues. asMeanwhile, enforce- informed speculation about the role of auctions in stimu- 2000 comprisedactually a larger percentage of the catch in Daniel. 1999 2001 rfe was lower because of resource depletion, crab illegal than in than in the . Since the total volume of crabthis caught in the ). 104 u.s.$190 Despite several highly publicized ofarrests rfe oblast 1999 466 1990 fi shingindustryamounts attractedlarge of rfe Guide . The data for ’s most important industry. s, and succeededhas so well that fi sh- s and million in total to the budgetRussian u.s.$33 pages krai million (the auctions contrib- for s over fi shingrights and Rus- 2001 Conservation rfe are similar, and seafood imports, 2000 2002 as . and 

OVERVIEW OVERVIEW  Development. Newell, system often requires ship- the electricity grid. Russia are not connected to fi vethousandin villages the World estimates Bank ing and fi shing towns. But outpostsmilitary and min- settlements, essentially supply power to dispersed systems (see map instead designed a series of unfeasible. system in the northern constructing an integrated tainous topography made system. built the region’s energy relate to how the Soviets of summary,this but they extending beyond the scope energy morass are complex, products. est producer of refi ned KhabarovskKrai,oil,imports fuel as diesel fuel from the United States. Even the crude oil exports to purchase oil products from abroad, such refiningcapabilities. forexample, Sakhalin, uses profi ts from gion importsalso petroleum products because of inadequate of the three-quarters than Siberia generators, to fuel coal-driven which provide more such shortages, energy suppliers import fromcoal western number of people froze to death for lack of heat. To survive or power due to an inadequate and erratic supply; in gles with energy shortages. Residents are often without heat hydroelectric power from plants in Amur to China. River ( Sakhalin and Timpton Rivers ( by hydroelectric power stations on the Uchur ( ending in Hokkaido, through Sakhalin Japan—generated energy companies, ofdreams a power bridge from Sakha government,The Sakha together with domestic and Japanese Companies inexport also Primorskycoal. and Sakhalin production to Japan and other Asian-Pacifi ccountries. based Yakutugol, exports about some oilThe producer,fromcoal largest Sakhalin. Sakha- greatest economic hope. door, some promote oil, and gas, exportcoal as the region’s located in the oil reserves. reserves, second deposits,coal largest and eighth largest j. newell Energy The origins of the current Despite these export plans, the region continually strug- The region already exports large quantities of andcoal J. 110 2004. The —Russia holds the world’s—Russia gas natural largest 111 105 Soviet planners A considerable portion of these resources are rfe rfe McKinleyville, 2000 1 . NortheastWith energy-poor Asia next ’s moun- The . 112 19 This This ) to MW). 1300 rfe 106 Russian MW), with a third stationMW), on the rfe 108 ’s heat and power. There are plansalso to export 60 A power station belches coal soot in the arctic town of Pevek, Chukotka Peninsula. Chukotka of Pevek, town arctic the in soot coal belches station A power percent of its annual Far CA: rfe 3700 East: 109 Daniel ’s larg- The re- MW) MW) 2001 107 a A & Reference Daniel. reducing production. Some operating mines lack the capital ply. closed industry restructuring Coal many mines, greatly south, have power only a few hours a day. northern region. Many of even these villages, those in the becomehas acute in remote and in villages the mountainous even more costly, leading to a spotty supply. The energy crisis eral subsidies and high transport costs thesemake shipments roads become increasingly north). farther scarce Lower fed- through the southern are frozen most of the year) and poor(railroads infrastructure navigation season (the Sea of Okhotsk and the Siberian seas up to power stations. for Krai, Khabarovsk example, importedhas in again, many regions mustcoal be imported to fuel thermal per kWh). be trucked, shipped, or fl ownin, is expensive (up to largely rely on diesel generators and their fuel, since it must ping fromcoal surrounding regions. The smallest settlements area’s electricity and heating. To keep energy flthese owing, shut down the town as the enterprise may supplyalso the employ most residents, lack of deliverycoal essentially can or close. In towns where a single industrial enterprise may terprises unable to pay for are coal forced to halt production and centertrading banking of the powercauses This cuts and blackouts in Vladivostok—the transportation is too costly and workers have not been paid. Vladivostok, for example, often cannot produce because fuel to modernize and increase production. High High cost is only one reason for the erratic energy sup- Shipping tocoal the north is costly, duepartly to the short In the south, the Soviets built an electricity grid, but 85 percent of its fuel in some years. 113 466 Guide pages rfe travel primarily west to andeast for Conservation w e i v r e v O rfe . Many industrial en- 115 Coal minesCoal near 114 u.s.$0 

and . 61 21

Nikita Ovsyanikov

OVERVIEW OVERVIEW Development. Newell, 62 ���������� ��� ���� ������� ���������� �������� ��������� ��� ������� ��� ������� ������ ��� ������ Union, Chandler found “energy use in factories, apartments, developmentcal was stifl ed.Throughout the formerSoviet energy prices rarely reflcost, and ected actual ( ity because production costs were rarely important, ( economies,Stalinist ( Soviet Union: ( ing Chandler,to William an energy specialist on the former (energy per unit fi cientcountries, Russia has ahigh rate of energyintensity rfe municipal and regional budgets. enterprises require subsidies, which impoverishes further ������� ���� ���� ���� ���� ���� ���� ���� ���� ��� ���� ���� �� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� �� �

� Increased energy effi ciency would helpameliorate the � ’s energy crises. oneAs of the world’s most energy-inef- ���� ���� ����  ��� ���� ���� �� ���� ���� ������� T S A E R A F N A I S S U R E H T J. ������� ������� ������� ������� ������� ������� 2004. 1 ) energy-hungry heavy industry dominated) energy-hungry gdp ���� ). There are four reasons for accord- this, McKinleyville, ���� 2 ���� ) energy conservation was not a prior- The ���������� ����������� ����� �� ������ ����������� �� ��� ��� ������� ��� ���� Russian ���� ���� ���� ���� ���� ���� ���� ���� Far 4 CA: ) technologi- ����� 3 East: ) Soviet Daniel ������ �� ���� ���� ������ �� ����� ����� ����� ���� ����� ����� ����� ����� ����� ����� �� ����� A & Reference Daniel. although long a coal exporter, may face a defi a face this may of cit exporter, coal a long although and, gas and oil both for market potential a is China gas. natural Sakha for market primary potential a forms and (LNG) liquefigas natural Sakhalin ed of buyer major a become may II, Sakhalin from fi oil of the shipment rst received which Korea, South project. II Sakhalin the from oil imports now and decades for coal coking RFE ported im- has Japan liquefigas, and oil of natural ed importer largest world’s the Already scenarios. growth economic medium Agency Information Energy U.S using project), gas and oil I Sakhalin the in share percent 20 India’s of because (included India and China, Korea, South defi Japan, for energy cits projected and past shows 1.5 Figure oil. Eastern Middle on dependence reduce to means a as attractive is oil Russian and fuel, emission low- a as Asia to attractive is gas Natural gas. natural and oil, coal, of supplier future a as Russia sees Asia Northeast energy-poor use, energy rising with Faced Asia Northeast in geopolitics Pipeline p. 362). 362). p. (see pipeline gas Kamchatka the about concerns similar have environmentalists and 400), p. (see rivers spawning salmon- cross will alone II Sakhalin for pipelines The tanker. by oil ship would it there, From Vladivostok. near bay small a to Angarsk from pipeline km 3,800 billion, U.S.$5 a envisions Transneft China. Datsin, to Siberia) (Eastern Angarsk from pipeline km 1,700 billion, U.S.$1.7 a build to wants Company, Petroleum National Chinese owned state- the with Yukos, Asia. to oil export to plans pipeline competing announced Transneft and Yukos giants oil Khabarovsk. of shore eastern the on De-Kastri of town the in terminal tanker existing an to Strait Tatar the across one this — pipeline undersea another build to wants company the 2005, by oil its liver China. in buyers potential with negotiating also is ExxonMobil 2008. by Japan to gas natural exporting (Japan), Hokkaido to undersea and island the across line pipe- gas a build also may I, Sakhalin of operator Mobil, Exxon- occurs. this until proceed not will plans gas; for contract long-term a secured not has Energy Sakhalin But terminal. LNG largest world’s the of site future and Korsakov of port ice-free the to close Prigorodnoe, to Island Sakhalin across pipelines export gas and oil build to plans II) (Sakhalin Energy Sakhalin markets. these to gas and oil bring to necessary infrastructure the building (see fi just in years 1.5). g. fi fteen resource —JN costs. environmental with come projects These already or planning are companies Sakhalin-based 118 466 Guide pages for 117 In late 2002, Russian Russian 2002, late In Conservation 116 To de- and 

OVERVIEW OVERVIEW  Development. Newell, 3 4 5 1 1 6 9 8 1 5 5 0 5 0 0 5 �� ������ ��� ���� � �������� ���� ��������� ����� ���� ��������������� ����� ����� ����� 0 ° ° ° 0 ° ° ° N N N N E E ° ° J. E E � � � � � � � � � � � � ��������������� � 2004. � � � � � � � � � � � � � � McKinleyville, � � � � ����������� The � � � �

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OVERVIEW