In the past 15 years, almost 2/3 of all cod from the Barents Sea has been handled by Norwegian fish buyers, with a considerable share from Russian fishermen.
In 2002, Russian deliveries started to decrease, and two years later, they were reduced by almost 40%.
"Part of the problem in Finnmark and Troms is that the industry was based on continued large deliveries of cod from Russia", says Senior Scientist Frode Nilssen at Fiskeriforskning. "Today's situation is much closer to what would be normal."
More modern fishing fleets
The main reason for the decline can be found in the development in Russia in recent years. The Russian fisheries industry has gone from being a small link in the Soviet system's planned economy to becoming a relatively free market actor today.
In the 1990s, the Russian fishing fleet needed renewal. The solution for many was to enter into so-called bareboat charter contracts wherein Western shipping companies leased out boats to the Russians in turn for the Russians' pledge to deliver their catches in Norway. This ensured a good supply of raw materials to the Norwegian fishing industry.
Now, many have terminated their contracts and the Russians are free to choose where they want to deliver their fish. Also, many of the large, older vessels have been replaced with modern factory vessels where the fish is frozen on board instead of being delivered near the catch area.
Must be more attractive
The Norwegian fishing industry is also meeting strong competition for the Russian cod. One factor is that the EU is cutting the quotas to preserve their stocks. As a result, the Russians are expecting increased demands from the EU and are orientating themselves towards these markets. Other markets also give good returns.
But Norway is also being voted out because it is expensive to deliver fish here, and because some fishermen feel they are treated poorly. Russian fishermen feel they are subjected to stricter controls than others who discharge their catches in Norway, and encounter a rather inflexible body of laws.
"We cannot expect to return to an equally good situation as we previously had. But if we want the Russians to deliver more fish in Norway, we must also make ourselves interesting as a customer as concerns price, marketing potential and adaptation", says Nilssen.
