© 2007 Institute of Current World Affairs
The Institute awards long-term fellowships to develop a deep understanding of an issue, country, or region outside the US and to share that understanding with a wider public.
Institute of Current World Affairs - Home Page

Below is a hobbled text version of a PDF document.
In order to read the actual document please click the link below and register if necessary.
(One-time registration is free and very quick.)
Read article

1/1/1993 - Petropavlovsk-Kamchatsky’s Port Opens to Foreign Shipping, And Privatization Fever Sweeps the Fishing Industry. by Peter H. Christiansen

NOT FOR PUBLICATION WITHOUTWRITER SCONSENT PHC INSTITUTEOFCURRENTWORLDAFFAIRS PETROPAVLOVSK KAMCHATSKY S PORT OPENS TO FOREIGN SHIPPING AND PRIVATIZATION FEVER SWEEPS THE FISHING INDUSTRY January Petropavlovsk Kamchatsky Russia Mr Peter Bird Martin Executive Director The Institute Current World Affairs West Wheelock Street Hanover New Hampshire 03755 Dear Peter The Petropavlovsk Kamchatsky oficially foreign commercial vessel traffic This awaited result concerted lobbying Kamchatka Regional Administration Kamchtka Region Soviet People Deputies Russian Federal government Kamchatka Region future With Petropavlovsk Kamchatsky poised increasingly important North Pacific regional economy Petropavlovsk Kamchatsky advantage geographic location which offers excellent access world richest fishing grounds Sea Okhotsk Bering Sea North Pacific The protected harbor Avacha Bay conveniently situated ocean easily included along trade route goods moving between Alaska Japan During recent visit peninsula American fishing company executive commented In terms location access resources Petropavlovsk Kamchatsky position Dutch Harbor Alaska fifteen years The potential development unbelievable The executive expressed common among foriegners visiting Petropavlovsk Kamchatksky problem Russian Far East fishery gaining access resources there fifty foreign vessels fishing Kamchatka waters making region attractive investors interested doing something besides merely extracting oceans bounty Like Russian matry ushka which conceals identical dolls within itself solving problem Russia never brings trouble rather uncovers unforseen Peter H Christiansen researching Pacific Fishing Nation Since Institute Current World Affairs Crane Rogers Foundation provided fellowships enable outstanding young adults outside United States write about international areas issues Endowed bythelateCharlesR Crane theInstituteisalsosupportedbycontributionsfromlike mindedindividualsand foundations difficulties which often bothersome maddening original problem Consider opening All Kamchatka Regional Administration efforts Petropavlovsk Kamchatsky right where started Moscow hedged opened conditionally Under rules Russian Naval High Command requires minimum advanc notice approve foreign vessel According local reports The Russian Far East Fleet High Command decision exception permit organizing exceptional Russian razovi valid calls foreign vessels bearing goods foodstuffs Kamchatka region maintaining appropriate permission system excluding vessels conducting fishing operations those vessels which subject restriction calls Russian Far East ports Russian Federation Resolution September I The Port Ajar Vesti December The reasons restrictions Petropavlovsk Kamchatsky rooted Kamchatka historical position Russia distant frontier The during century Kamchatka experienced notlcable influx foreigners after Russo Japanese War defeated Russian Empire granted Japan fishing conce ssions The foreign presence threatened Russia Tsar waves political exiles called stoliplnskie pereselentsi Russian Stolypin settlers named Fyodor Stolypin Tsarist Russia reformist Prime Minister Kamchatka counterbalance Japan growing influence peninsula Ten Years Before Revolution B P Polevoi Kamchatka In recent history foreigners completely excluded Kamchtka Region until Prior Kamchatka Russians secret closed average citizens Only military personnel citizens special permission passports allowed peninsula The reason strict security simple The Kamchatka peninsula still highly militarized piece estate A flotilla Russian Navy nuclear submarines based across Avacha Bay Petropavlovsk Kamchatsky Krasheninnikova Harbor times while climbi hills I sleek profile heads Pacific In there swarms sailors coast guard naval vessels docks runways Ellzovo Regional Airport gateway Kamchatka ranks MIG fighters parked battle ready their bunkers The heavy military presence exciting Cold War friends remember Revolution Day November United States aircraft carrier Independence visit Avacha Gulf right outside Russian prompting Soviet naval contingent scramble chase The infamous overflight Korean Air Lines Flight ended shooting tragedy Ten years later Russia disarming Yeltsin Bush solemly signed START Treaty Moscow eight thousand miles national security remains overriding concern Petropavlovs Kamchatsky press regularly features articles military bemoaning growing presence foreigners Kamchatka Russians frequently accused xenophobia their nervousness regarding Kamchatka interpreted simple prudence In October Randall Lecoque Consul General newly opened American Consulate Vladivostok swung through Petropavlovsk Kamchatsky aquainted visit At press conference Kamchatka journalist asked Lecoque America Russia relaxed military tensions there still three American nuclear submarines posted outside entrance Avacha Bay Lecoque replied nothing about submarines would refer matter American Naval Attache Embassy Moscow friendly relations apparently preclude surveillance It therefore surprise foreign vessels calling Petropavlovsk Kamchatsky still permission Russian Naval High Co mmand based Vladivostok thousands kilometers The opening changes nothing foreign commericial fishing traffic which excluded rules anyway needs luxury quick advantage newly opened Unless permission system changes foreign investors fishing shipping companies unlikely interested developing Petropavlovsk Kamchatsky Marine infrastructure development attractive especially complement The opinion often expressed Petropavlovsk Kamchatsky could become major processing transshipment center ground salmon northern waters Russian Far East markets Asia North America The sizeable foreign fishing fleet operating Russian waters around Kamchatka could Petropavlovsk Kamchatsky needs The City Petropavlovsk Kamchatsky Kamchatka Regional Administrations could millions dollars annually customs duties pilots related services money desperately needed reconstructing degraded infrastructure Petropavlovsk Kamchatsky growing private sector economy which could provide goods services foreign vessels calling would greatly benefit A fully would stimulate interest developing Petropavlovsk Kamchatsky natural industrial processing storage marine services Foreign investment these industries eagerly sought Kamchatka politicians businesses since would allow Kamchatka control resources local fishermen price produce According unofficial estimates coming Russian Far East presently costs three times world market price This because Russian Far East doesn modern processing plants caught taken somewhere processing Processed known value added product fishing industry reason fetches better price value market In Kamchatka fishing enterprises produce substandard product outdated processing plants consequently value their Until Kamchatka develop processing capabilities little realizing enormous economic potential doomed razbazarit Russian squander fritter resources rather domestically produced value added product Frittering Kamchatka marine resources suits foreign fishing companies harvest cheap process reaping profits while avoiding enormous costs building modern processing plants country embroiled economic political chaos To compensate domestic processing power Kamchatka fishing enterprises overseas processing This highly disadvantageous For example Moreproduct water fishing branch Kamchatrybprom ships catches Thailand processing finished product labeled Product Thailand North America Effective shore based processing requires developed transportation networks storage support Kamchatka never developed infrastructure instead fishing industry compeletly oriented towards removing resources shipping elsewhere Russian ocean going factory trawlers traditionally catch processes freeze churning blocks headed gutted product which offloaded transports mainland This practice perfectly acceptable producing Soviet Union internal consumption since people factory institutional cafeterias Russians traditionally fried there demand quality fresh tasting North America Japan But times consumer tastes changing As housewife I nicely packaged fresh attractive thawed remains something caught months I meals family month In West ensure quality market demands individually quick frozen IQF surimi Both processes expensive processing packaging technologies beginning their Russian Far East fishing enterprises The Kamchatka housewife until entire Russian fishing industry retools itself piece In meantime Kamchatka politicians businessmen planning future According P G Premyak Chairman Kamchatka Region Soviet People Deputies overarching design Kamchatka create major transportation Russia Far East North Pacific To complement Petropavlovsk Kamchatsky regional officials Elizovo Regional Airport international traffic Plans works construct international commercial airport Puschino Puschino military airfield concrete runway built specially Buran space shuttle These grandiose plans Opening Kamchatka peninsula international traffic would diversify local economy bring great financial benefits region Boris Sinchenko First Secretary Kamchatka Regional Administration The opening peninsula foreign traffic would allow amelioration pressure fishery resources Russian press significantly increase opportunities currency without utilizing biological resources To point Moscow press statistics already cited demonstrating landing airplane airport similar earns thousand dollars about million rubles change present exchange To nothing currency tourists businessmen ready spend establish service infrastructure Welcome No Entrance Unauthorized Personnel Vesti December Creating transportation Petropavlovsk Kamchatsky however easier The logistic difficulties involved bringing project fruition evilly multiply rather diminish region infrastructural deficiencies Elizovo airport accomodate Boeing airliner really begins after plane lands Creating infrastructure necessary demands Western tourists hotels restaurants comfortable waiting rooms civilized bathrooms project requiring years effort Even installing customs immigration services eeded handle foreigners Elizovo beyond present financial means Regional Administration By means comparison Khabarovsk Airport Russian Far East stretched limit coping fifty international flights while Magadan barely handle The short alternative called Kamchatka corridor allow foriegn flights Russian territory Kamchatka would bring Kamchatka region substantial profit arranging overflight logistics while boosting safety margin international flights between North America Asia since corridor passes rather water Poorly developed infrastructure hampers integration transport between Petropavlovsk Kamchatsky Kamchatka airports Elizovo Airport kilometers Petropavlovsk Kamchatsky single overburdened degraded convenient cargo shippi there railroad Puschino airport buried hundreds kilometers ocean Kamchatka beyond lacks minimum services needed commericial traffic At first glance Petropavlovsk Kamchatsky better shape Kamchtaka airports As Russian Far East premier fishing appropriate infrastructure docks wharves piers cranes already place along miles dredged developed waterfront Unfortunately existing shortcomings outweigh potential advantages Like Soviet built world ramshackle rotting disintegrating concrete rusting metal Virtually entire eight waterfront needs upgrading modernization restoration There small container cargo entire entire Kamchatka peninsula MorPort Sea Port hardly hotbed shipping activity A recent offload Japanese automobiles MorPort underscores problems facing Petropavlovlsk Kamchatsky The automobiles Ro Ro special transport vessel allows quick offloading vehicles rolling driving rolling driving Under normal coditions Ro Ro offload entire cargo hours maximum The offload MorPort three According Kamchatka Television reports eyewitness accounts outraged automobile owners nearly rioted waded through thickets paperwork watched helplessly inexplicable technical difficulties disinterested dockworkers created further delays The shipyards which could repairing Russian vessels servicing foreign vessels For example Lenin Shipyard SRV SudoRemontnyVerf Russian spent December January suffering through interminable series slowdown strikes downs workers demanding etter working conditions To attractive calls foreign fishing vessels provide local fishing fleet trawl equipment spare parts Petropavlovsk Kamchatsky desperately needs upgrade deteriorated fishing equipment factories improve distribution network The Director Petropavlovsk Net Making Factory commented during recent interview would warehouse outlet Petropavlovsk Kamchatsky similar United States place where fishermen could simply trawl spare parts It would easier economical bring American equipment Seattle Now I everything factories Moscow It takes months orders filled ridiculous amount I rather bring everything across ocean I everyone would profit There demand trawl equipment The problems Hard currency initial investment stock finding West Coast partner willing chance unknown venture To lessen risks caused convertible ruble political instability economic chaos potential investors often conditions simply impossible Russians A recent visit group Japanese investors further illustrates situation The investors visited Petropavlovsk Kamchatsky Fish Cannery offered import install entire processing plant Cannery coughed thirty percent currency before delivery equipment It would great_ equipment renew plant Cannery Director But there currency Times really difficult money We potential cannery space vessels deepest draft offload right processing lines nothing could better And close kilometer undeveloped waterfront enough space expand modern facilities But investment abroad happen The Director privatizing Fish Cannery thinks situation improve markedly following privatization Before worked orders government anything structure Now I chance And privatize The process privatization begins after workers given enterprise kollektiv their Then newly independent enterprise registered government rough waters Russia economy For Fish Cannery approval pending about months following submission necessary documents City Regional Administrations speed light relatively considering nobody privatized anything country before Privatization tends popular among factory enterprise directors Petropavlovsk Kamchatsky despite enter troubles legacy failed administrative command system guarantee Still majority directors I spoken desire If I going I fighting promised Fish Cannery Director Commented private sector Kamchatka businessman The breakaway factory enterprise directors looking possible themselves things general population another question entirely The I privatization economic reform small groups people fellow travel education inclination begin create independent companies The biggest filled service infrastructure hotels communications If people create infrastructure foreigners begin seriously Petropavlovsk Kamchatsky There registered private enterprises Kamchatka Region employing approximately Kamchatka force these private enterprises commercial structure refers mostly people retailing goods rather producing Still indications privatization completely transformed Kamchatka fishing industry within The changes wrought privatization already enormous slowing The formerly omnipotent government fishing enterprise Kamchatrybprom vassals present enterprises Tralflot Rybkholodflot BOR A O Akros Lenin Kolkhoz during stroika years later during degovernmentalization these enterprises later decided privatize entirely Now Kamchatrybprom remaining industrial assets choosing privatize their including Tin Can Factory Fish Cannery distribution networks shops material bases Kamchatrybprom control According anonymous source Kamchatrybprom former industrial giant within controls Morflot newly created water fishing branch Kamchatrybprom quotas difficult getting source It possible quotas The Kamchtrybprom mixed blessing Kamchatka According uncomfirmed reports Kamchatrybprom fishing collectives remote regions Kamchatka voted their found going tougher expected According uncomfirmed report Ossora factory Bering Sea coast nobody worked months The inhabitants nearly completely dependent outside world marooned living mouth little better future In Petropavlovsk Kamchatsky centralization should ultimately attractive climate foreign investors directly individual factory enterprise directors rather through monolithic inflexible administrative command system There games players rules powerhouses everything their favor anymore recent events system patronage quiet death patrons suffer upstarts lightly Privatization Kamchatka formation small fishing enterprises owning vessels The fishing enterpises Pelingator Kamchatsudo Sozhgoi Kamchatka Native People Association Each these independent enterprises vessels On January newly created Kamchatka Union Independent Entreprenuers members Kamchatka Regional Administration Kamchtaka Region Soviet People Deputies representatives Kamchtaka largest fishing companies including Lenin Kolkhoz Rybkholodflot Tralflot A O Akros lobby greater quota shares According M S Timoshenko Chairman Kamchtka Fisheries Committee The independents awarded quotas basis their catching capacity award quota shares private enterprises without vessels We further consideration whether independents investing their profits KamChatka determine quota shares The Committee prohibited independents purchasing vessels In interest upgrading Kamchatka fishing Entreprenuers Unitel Vesti January The Independent Entreprenuers Union proposes number measures political clout Kamchatka highly competitive fishing industry According Union Vice President Sergey Sharov Union first provide Kamchatka citizens information about entreprenuer investments economy peninsula Sharov hopes create independent television network newspaper considers independent participation local politics mandatory The Union effect founded Kamchatka first independent business lobby defend their interests The Union manage without working system According reports The theme cooperation Occupies special place relatlons beween Entrepreneur Union other elements economic Regional Administration We completely dependent Adminis tration access resource quotas Sergey Sharov For example Administration promised eight ships Kamsudo total catch I00 pollock hundred fifty With quota shares chimed Union Board Member Vladimir Demchenko I barely baited The Union agrees request immediately demand conrete measures support entreprenuers Administration least equal footing government enterprises guaranteeing quotas natural resources It completely obvious competition entreprenuers tradlonal Kamchatka monopolles fishing bases fleet directorates rising price products their lowering This exactly government structure worried about Entreprenuers Unitel Vesti January Given inflatlon costs Operating vessel Union claim somehow manage lower rising prices probably spurious The really disturbing above dispaches concerns Union quota allocations which worth thousand dollars restriction vessel purchases which effectively blocks entreprenuers going business first place Since vessel costs millions dollars Is brakes privatization Some anticipate atomization Kamchatka fishing fleet companies vessels logical conclusion privatization Opines commentator Kamchatka fishing enterprises could collapse entirely privatization restrained enterprise level organization logically becomes privatization seperate factories refrigeration complexes particularly vessels In future professional fishermen understand since absolutely every thing including diesel going bought anyway purchased order zayavkam makes sense management structures UTRF Okeanrybflot Rybkholodflot All since known these structures there thousand managers suppliers versus thousand Kamchatrybprom On other total catch fallen third catch Having understood fishermen privatize against appeals their present leadership which doesn maintain common front general collapse Privatization Kamchatka Style Vesti Dec I0 Rather creating common front however Kamchatka traditional fishing enterprises reacted extremely fluid situation squabbling among themselves quota shares On January quota limits determined Kamchatka fishing fleet meeting Kamchatka Regional Fisheries Committee According press reports proceedings The meeting agenda consisted three points first confirmation general principles distribution natural resources proposal review enterprises purchase reoutfitting vessels comparitively little energy accepted peacefully But interesting important which representatives fishing enterprises gathered discuss third point agenda confirmation catch limits upcoming Almost quotas distributed quickly concern Kamchatka And And there indeed something argue about since present Kamchatka almost source currency which depends fiscal health Kamchatka fishing enterprises The loser argument turned Lenin Kolkhoz which catch limit while others their limits The Chairman Kolkhoz V Z Drachev demanded explainatlon unfair distribution His attempts prove Kolkhoz leader field represents Only single collective village inhabitants taken consideration By decided problem Committee Working Group review despite Working Group members opinion cannot solve problem At Kolkhoz Chairman accused M S Timoshenko Committee Chairman giving A O Akros opportunity capitalists offer price accusation truth In possible certa nobody Commission doubted matters stood would stand So quite surprising Committee decided prohibit Or transfer quotas between enterprises A Quota Quota Kamchatskaya Pravda Jan The winter Kamchatka The uncertainty privatization quota disputes wreak fishing industry resonates throughout lives peninsula citizens With demise traditional fishing monoliths workers their patrons often catastrophic results Kamchatka short heating since Petropavlovsk Kamchatsky entire neighborhoods regularly without water With fishing enterprises unable unwilling bring heating their apartments falls shoulders inexperienced private companies overburdened City Regional Administrations Not Petropavlovsk Kamchatsky Central Ma there wooden barracks owned Kamchatrybprom housing families children elderly women The barracks shabby story wreck without entire winter The barracks unfortunate dwellers appealed Kamchatrybprom Regional Administration Their appeals ignored KTV reported January Kamchatka Governer V A Biryukov dismissed saying Kak zhili Let living Kamchatka still future Best regards J Peter H Chrlstlansen