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Russia’s antimonopoly service blocks Karat Group’s Arkhangelsk Trawl Fleet bid

Заграничный «рыбный» портал сообщает, что ФАС отозвала у МТФ разрешение на приватизацию Архангельского тралового флота.

Murmansk Trawl Fleet (MTF) is no longer able to participate in the bidding process for state-owned rival Arkhangelsk Trawl Fleet (ATF), with a final decision on bids coming this week.

The final decision on bids for the cod and haddock fishing company is expected on Nov. 19 but MTF is no longer part of the process, a spokesman for the company, which is part of the Karat Group of companies, suppliers to Ocean Trawlers.

“MTF is no longer a bidder. The Russian Federal Antimonopoly Service (FAS) has withdrawn its approval to buy ATF previously given to MTF,” the spokesman told Undercurrent News.

The reason for such decision of FAS is “unclear”, he said.

“In practice, it means that MTF was knocked out from the process of privatization, as MTF no longer can qualify to be a bidder,” said the spokesman.

“In our opinion, there’s no reason for such withdrawal and this situation could have been caused by the competitors of MTF,” he told Undercurrent.

This means Russian Sea Catching (RSC), the fast-expanding fishing company partly owned by Gennady Timchenko, the resources billionaire who is close to Vladimir Putin, Russian president, is a clear front runner to acquire ATF, the sale of which is being run by Gazprombank.

ATF has an ageing fleet but large quotas for cod and haddock. RSC is expanding fast in Alaska pollock quotas in the Russian Far East and is now the number one in this species, with 177,000 metric tons. The company has acquired four companies in pollock, but none outside of this species, yet.

Andrey Teterkin, the CEO of the company, told Undercurrent RSC is in the process of setting its investment and expansion plans for next year, which could include new builds.

Earlier bidders for ATF were MTF; RSC; Meridian, a Moscow-based processor; a fund called Nordic Investments, along with current ATF management; as well as the North West Fishing Consortium, a non-profit holding of various Russian fishing companies.

None of the other bidders could be reached for comment.

“So, we get an answer about new ATF owner less than in a week, but after that there will be rather long – one-to-two month — period for formalization of this decision and signing all appropriate documents,” a spokesman for RSC told Undercurrent.

The spokesman confirmed RSC has entered into an option agreement with Sobinbank, on RUB 1 billion ($30.71 million) in credits relating to ATF.

“Pawn for these credits are the three biggest ATF vessels and some capital facilities,” he said.

“RSC reached an option agreement with Sobinbank on these credits. So we have a right to buy ATF credits from Sobinbank,” he said. “It could provide us with some advantages during privatization and, in case we win ATF privatization, it will afford us to noticeably decrease external ATF liabilities.”

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