FX.co ★ China bans imports of Russian frozen fish

Remarkably, China is one of those countries that manage to take advantage of the coronavirus pandemic in their economic interests. Besides, isn’t it amazing that China is the first country that contained the spread of the deadly virus within the state borders because of its concerted efforts?

Now the second largest global economy is gladly exploiting the opportunity to ban any unwanted imports in the context of fighting against COVID-19 without imposing official sanctions. Australia and Russia were the first long-standing partners to fall prey to such a protectionist trade policy. A couple of days before the new year, Beijing announced that Russian seafood vessels were barred from unloading their cargos in all domestic ports.

Therefore, this decision of China’s authorities could entail the termination of Russian fishing companies. In fact, 61% of Russia’s fish exports account for China. Last year, Russian companies exported 1.09 million tons of frozen fish and seafood to the amount of $3.27 billion. Russian suppliers encountered first troubles with complicated port inspections as soon as China’s veterinary authorities had detected positive coronavirus traces on fish packaging. Russian fish companies will suffer a negative effect from China’s ban as early as in January 2021. The season of fishing pollock in the Sea of Okhotsk is just around the corner. Experts estimate that the pollock catch will total 1.2 million tons in Q1 2021. Sadly, Russia lacks industrial capacities to process such large volumes of fish as well as ample storage facilities. So, the bulk of frozen fish has been going for exports for many years straight. Far Eastern fishing companies will take the brunt of China’s ban on fish imports, spokesman for Russia's fisheries agency, Alexander Savelyev commented on Beijing’s move.