The legislation received overwhelming support from 242 deputies, underscoring the country's commitment to revitalizing its fisheries industry amidst ongoing economic and geopolitical challenges.
Enhancing Openness, Publicity, and Transparency
The primary objective of the newly passed law is to ensure openness, publicity, and transparency in the procedures for attracting investments into Ukraine’s fisheries sector. This initiative aims to create a more conducive environment for both domestic and international investors, facilitating equitable access to the sector’s resources.
Ministerial Endorsement and Strategic Vision
Vitaliy Koval, the Minister of Agrarian Policy and Food of Ukraine, highlighted the significance of the legislation during its passage. He stated:
“The adoption of the draft law on attracting investments in the fisheries sector will allow us to introduce mechanisms for equal access of entrepreneurs to resources, while simultaneously attracting additional funds to the market. These funds will be directed to the development of the fisheries sector in Ukraine, as well as other sectors of the economy.”
Koval emphasized that the law is a strategic move to bolster economic recovery post-conflict and to leverage Ukraine’s rich aquatic bioresources for sustainable growth.
Key Provisions of the Law
The Draft Law No. 8119 introduces several legal and organizational principles aimed at attracting investments in two main areas:
- Aquaculture Development: Promoting sustainable fish farming practices to increase production efficiency and meet both domestic and international demand.
- Fishery Exploitation: Enhancing the sustainable extraction of fish from water bodies through special commercial fisheries, ensuring that resources are utilized responsibly and remain available for future generations.
Auction-Based Investment Mechanisms
A notable feature of the law is the establishment of auction-based mechanisms for investment attraction. This approach is designed to:
- Ensure Fair Competition: By conducting transparent auctions, the government can allocate fishing rights and investment opportunities equitably among interested parties.
- Maximize Revenue: Auctioning resources allows the state to secure the highest possible returns from its natural assets, reinvesting these funds into the sector’s development.
- Promote Sustainable Practices: Allocating fishing rights through auctions encourages investors to adopt sustainable and environmentally friendly practices to maintain their licenses and reputation.
Sustainable and Competitive Fisheries
The legislation places a strong emphasis on the sustainable and non-exhaustive use of aquatic bioresources. Key objectives include:
- Environmental Protection: Implementing measures to safeguard aquatic ecosystems from overfishing and pollution, ensuring the long-term viability of fish populations.
- Increased Productivity: Enhancing the efficiency and output of fisheries through modern technologies and best practices.
- Market Competitiveness: Strengthening Ukraine’s position in the global fisheries market by ensuring high-quality production and adherence to international standards.
Infrastructure and Investment Opportunities
The draft law also addresses the critical infrastructure needs that underpin the fisheries sector’s productivity. Areas of focus include:
- Irrigation Systems: Improving water management to support aquaculture and ensure optimal conditions for fish farming.
- Logistics and Crop Storage: Developing robust logistics networks and storage facilities to reduce post-harvest losses and maintain product quality during transportation and storage.
Overcoming War-Induced Losses
Despite the sector’s significant potential, the fisheries industry has endured substantial losses estimated at $80 billion due to the war, with more than 65% of these losses concentrated in conflict-affected regions. To facilitate the restoration and growth of the fisheries sector over the next decade, the study conducted by the Government Office for Attracting and Supporting Investments UkraineInvest outlines the necessity of attracting $56 billion in investments.
Conclusion
The Verkhovna Rada’s adoption of the Draft Law No. 8119 marks a pivotal step in Ukraine’s efforts to rebuild and modernize its fisheries sector. By fostering a transparent and equitable investment environment, the law aims to attract significant financial resources, drive sustainable development, and enhance the competitiveness of Ukraine’s fisheries on the global stage.
As Ukraine continues to navigate the complexities of post-conflict economic recovery, strategic investments in key sectors like fisheries will play a crucial role in ensuring long-term prosperity and food security, both domestically and internationally.
