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Vessels Constructed at Cyprus on Russian Money Will Come Under the Russian Flag in May, 2010

April 28, 2010

27 fishing crafts built against security of the Russian Federation in 90’ies and registered at Cyprus may come under the Russian flag already in May. This was reported by the head of Rosrybolovstvo Andrey Krayniy in his interview to RIA Novosti.

“Currently, fishermen work with VEB. At first they should sign a document on debt restructuring. VEB is to grant a permission for purchase and sale and delivery of these vessels to Russian companies. And then they are to be deregistered at Cyprus. At the best case, this will take a week and a half,” said Andrey Krayniy answering the question on the government’s order deadline.

According to him, after settling this, Rosrybolovstvo is to register the vessels within 24 hours and issue fishing licenses.

“I believe the problem will be settled within May, since only paperwork still needs to be fulfilled,” added he.

In April, the Decree of the Government of the Russian Federation on Flagging Offshore Vessels under the Russian Federation (modern long-liners and sterkoders) which under new legislation are not allowed fishing in Russian waters since the beginning of 2009 and are laid up in ports of Kamchatka and Sakhalin was adopted. The situation involving these vessels drew a wide response in this February when fishermen went on hunger strike. Then Prime Minister Vladimir Putin ordered to get the offshore vessels under the Russian flag.

In due time the credit to construct vessels against security of the Russian Federation was granted by German bank KFW. In 2001 the loan debt was repurchased by Vnesheconombank and the vessels were chartered by Russian companies of the Kamchatka Territory and Sakhalin Region. From the date of debt transfer to VEB, loan debtors (Cyprus companies Bering Trawler Ltd and Okhodsk Fishing) and Russian freighters (Kamchatka-Vostok, AKROS) did not pay off the loan.

Source: IA PortNews

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