Revenue from salmon sales significantly increased
Rewritten Article:
Consumer curious about Russia's Pacific salmon fishing scene? Check out the latest scoop on the "Vostok" holding company, formerly owned by AFK "System" and now under new management. Milan Kerimova, a fish market novice, has taken the reins, perplexing industry insiders and leaving many pondering her links to AFK.
After several fruitless years, the previous owners failed to boost "Vostok" profits, with last year witnessing a disastrous 50% dip in salmon catches. Kerimova's JSC "Insoft" got ahold of JSC "More Project," controlling an astounding 99.9% of "Vostok." This revelation comes from a "More Project" 2024 annual report published late in April 2025. Multiple sources intimate that Kerimova is the buyer, while fish market insiders whisper that her move may be in AFK's interests.
Who's Milan Kerimova? No one seems to know, as repeated attempts to reach her went unanswered. Similarly, "Vostok" refused to comment, while AFK declined to divulge any information regarding the transfer. According to market estimates, the "Vostok" holding is valued at 13-15 billion rubles, including debt.
However, what's striking is that despite the impressive valuation, "Vostok" revenue clocked 115.7 million rubles in 2024, resulting in a staggering 195.7-million-ruble net loss. The four structures under the holding's wing saw a 27.4% decline in overall turnover from the previous year.
Despite the losses, "Vostok" remains a vital player in the Pacific salmon production arena. Assets include 30 fishing grounds, six factories, and over 35 ships, allowing them to produce nearly 24,000 tons of processed products, red fish, and caviar per year.
AFK's interest in fish processing started in 2021 when they acquired Kamchatka assets, later forming the RPP "Vostok." News broke in November 2023 about OAO "Krauninvest" owned by Olga Zachenyaeva acquiring 22.5% of the holding. But this association later vanished from the founders' list.
Why did AFK sell their Pacific salmon fishing empire? Industry experts believe it could stem from difficulties exporting products to certain countries due to sanctions against AFK and co-owners, Vladimir and Felix Evtushenkov. Embargoes and payment blockages can pose significant challenges in the industry, notes Nikolai Titov, co-founder of legal firm a.t.Legal.
Another factor could be the economic downturn in 2024, when salmon fishing firms experienced a major catch drop. According to Rosrybolovstvo, the number of catches fell by more than half since 2005.
Additionally, rising interest rates have become a hurdle for fishing companies relying heavily on borrowed funds, adds Ivan Peshkov, head of the M&A department at BGP Capital.
Is the Russian fishing business still profitable despite the challenges? Tatiana Pushkova, director of Neo's business and asset valuation practice, assures that global consumption growth and state support measures keep investment in salmon production promising, with a slight decline in overall profitability from 60% to 33% in recent years. In Kamchatka, a drop from 57.5% to 20.6% has been observed.
The new management of "Vostok" holding company, Milan Kerimova, has entered the business realm, previously owned by AFK "System" and known for its operations in the finance industry. Kerimova's recent acquisition of JSC "Vostok" through her JSC "Insoft" could potentially impact the Pacific salmon fishing industry due to her perceived links with AFK.
