RUSSIANS LIFT BAN ON NORWEGIAN SALMON

UNCLAS OSLO 000583

SIPDIS

SENSITIVE
SIPDIS

STOCKHOLM FOR FAS:PTHURSLAND

E.O. 12958: N/A
TAGS: PREL ETRD WTO EFIS NO
SUBJECT: RUSSIANS LIFT BAN ON NORWEGIAN SALMON



1. (U) Two Norwegian salmon producers resumed exports of
fresh chilled salmon to Russia after receiving export
approvals from Russian authorities on April 24. Producers
began shipping in the first week of May, officially ending
the four month old Russian ban on Norwegian salmon.
According to the Norwegian Seafood Export Council, the two
producers, Pan Fish AS and Fresh Harvest AS, received the OK
to ship fresh salmon following joint Norwegian-Russian
inspections during the first week of April. Two other
producers were also inspected at the time but have not yet
received approvals to ship product. The four companies
inspected were among the largest processing houses in Norway.


2. (U) On January 1, the Russian Agriculture Ministry placed
a ban on all fresh Norwegian salmon imports after allegedly
finding abnormally large amounts of lead and cadmium.
Subsequent tests by Norwegian officials concluded that the
salmon was safe to eat. Norwegian authorities had been
working with Russian Agriculture Ministry officials to get
the ban removed ever since. Joint Norwegian-Russian
inspections of aquaculture facilities were held from March 27
to April 5 and the issue was discussed at the political level
during Russian Prime Minister Fradkov's visit to Oslo in late
March.


3. (U) Russia is Norway's third largest and fastest growing
seafood export market. In 2005, Norway shipped USD 533
million worth of seafood to Russia. While the temporary loss
of the growing Russian market hurt, it did not materially
damage Norwegian producers as they were able to divert their
fresh and chilled salmon shipments to Asia and other Eastern
European countries. The remainder of their production was
frozen for later shipment. Interestingly, the Russians did
not stop frozen salmon imports which continued during the
ban.


4. (SBU) COMMENT. Some observers believe that health issues
may not have been the real reason for imposing the ban. The
Russians may have been concerned about Norwegian salmon
flooding their market -- Norway is the world's leading salmon
producer -- or they may have wanted to retaliate for
increasingly aggressive Norwegian regulation of Russian
trawlers operating in Norwegian waters. Regardless of the
reason for the ban, its removal is good news for the two
approved Norwegian producers. Additional approvals will ease
fears in some quarters over Russians using health regulations
as foreign policy tools. END COMMENT.
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