Russian Sea Co. faces 60% revenue decline, heavy losses as it cannot make up salmon shortfall
SEAFOODNEWS.COM by Eugene Gerden August 20, 2014
Russian Sea is under threat of serious financial losses due to sanctions against Western countries, which were recently imposed by the Russian government. The company’s revenue may decline by almost 60% this year.
Prior to the sanctions, the company announced a tender for the delivery of 29,000 tons of salmon from 10 Norwegian fish factories. The deliveries were scheduled during the period of September 2014-September 2015, however, due to imposition of ban on imports, these plans will be never implemented.
According to the company’s initial plans, banned Norway salmon should be replaced by its own production from the fish farms in the Murmansk region, purchases of Far East salmon, as well as the salmon imports from Chile. However their salmon production does not exceed 6000 tonnes per year...
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