Monopolist Fish Farming Business in Lake Sevan

Monopolist Fish Farming Business in Lake Sevan


On 21 April the Armenian Government adopted three decisions in regard with the development of fish farming in Lake Sevan. Upon the proposal of Economics Ministry, an amendment was made to “Complex Program on Trout Reserve Recovery and Developing Fish Farming in Lake Sevan”. If it was planned earlier that private companies would be involved in the establishment of a cage net fish far, with this amendment this function will be carried out by newly founded “Sevan Aqua” CSJC, 100% shareholder of which is the Fund on Recovery of Sevan Trout Reserves and Developing Fish Farming. It’s planned to locate 50 cage nets in the area of 30 ha in Lake Sevan by 2024 each of which with 1000 tons of productivity and to raise 50,000 tons of summer trout and gegharkouni, while around 25% of the young fish will be let out into Lake Sevan for the recovery of trout reserves. One of the main problems that environmentalists are concerned with is the artificial forage for the fish, which contains phosphorus and nitrogen, which promote to the waterlogging and contamination of the lake. The project doesn’t mention the country of origin and the supplier company. It says that in the frames of this project in case of producing 10,000 tons of fish or more it will be economically beneficial to found a production of fish forage in Armenia. “The funds need for the solution to the environmental problems will be collected from 200 AMDs to be paid for each kilogram of sold fish by “Sevan Aqua” CJSC, 1.5% of the earnings, as well as from other profit shares received by the companies established by the fund,” the project says. At the same time, the project clearly shows that a part of the funds – around 2.6 billion AMD, will be directed to finance the investments needed for the fish farming project as a borrowing, which will be repaid in 2021-2022. That is, the funds transferred to the fund from fish farms will be again directed to business, while the environmental problems need to wait till 2021-2022. By the way, the studies carried out in the frames of this program revealed around 140 Sevan-related problems.

18:44 April 21, 2016


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