EMFF casts financial safety net around fisheries hard hit by war

21 Jun 2022 --- The European Fisheries Committee has approved financial support for fisheries in the aquaculture sector to respond to shortages incurred by Russia’s invasion of Ukraine. The financial aid will help fisheries that can no longer fish and those whose economic survival is at stake through loss of income or shouldering expenses due to the war.

“The report calls for specific measures to alleviate the market disruption to the seafood supply chain caused by the Russian aggression. The EU must take urgent action to mitigate the impact of the war and ensure the survival of companies and jobs in the fisheries and aquaculture sectors,” says Nuno Melo, European Parliament rapporteur.

The draft negotiating position should be submitted to the plenary vote in July. Once it receives parliamentary approval, MEPs will start talks with EU governments on the final shape of the legislation.

Current state of EU fishing fleets
Based on the text adopted in parliament, the European Maritime and Fisheries Fund (EMFF) will support companies whose fishing operations have been jeopardized by the war. Factors to be addressed include a rise in the price of energy, raw materials and fish feed.Scarcity of marine fuel keeps many fishing vessels in port.

In addition, fisheries and aquaculture producer organizations and operators whose economic viability is threatened due to market and supply chain problems caused by the Russian military aggression will also receive assistance.

In 2019, the EU fishing fleet totaled 73,983 vessels, providing direct employment to 129,540 fishers. Aquaculture employs around 75,000 people, with the processing industry comprising about 3,500 companies.

Currently, fuel prices are preventing fishing operators from breaking even and the scarcity of marine fuel keeps many vessels in port. Furthermore, there is a lack of sufficient alternatives for species such as Alaska pollack and Russian cod. The lack of vegetable oil is also causing serious difficulties for the canning industry.

Addressing war consequences
EU governments will be able to use their remaining EMFF resources for the 2014-2020 programming period to address the war consequences in the fisheries and aquaculture sector.

In addition to financial compensation, member states could also use the state aid rules more flexibly. This would enable them to set up schemes to provide state aid to fisheries and aquaculture companies affected by the crisis.

Members of the European Parliament amended the proposal to extend compensation to those companies whose economic viability has been impacted by the conflict and to the processing sector. About 75% of co-financing from the fund would cover lost income and additional costs caused by disruption to supply chains after the start of the war (24 Feb).

By Inga de Jong

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