The Indicator from Planet Money

How your favorite fish sticks might be funding Russia's war

February 26, 2026

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  • Russia is circumventing U.S. import bans on its seafood by processing its catch in countries like China, where it is substantially transformed and relabeled as a product of that processing nation. 
  • The practice of 'substantial transformation' allows Russian fish, such as pollock and pink salmon, to enter the U.S. market disguised as Chinese exports, thereby continuing to fund the Kremlin's war in Ukraine. 
  • Despite new U.S. rules aimed at closing this loophole, experts suggest the system remains imperfect, requiring more robust validation methods like scientific testing beyond simple reporting to effectively stop Russian seafood imports. 

Segments

Russian Seafood Funding War
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(00:00:12)
  • Key Takeaway: Russian seafood exports, including products like fish sticks and canned salmon, are a significant source of revenue funding the Kremlin’s war in Ukraine.
  • Summary: The episode of The Indicator from Planet Money addresses how Russian seafood sales contribute billions to the Russian economy. Before the war, Russia exported about $6 billion worth of fish globally, including $1 billion to the U.S. This industry is supported by figures close to Vladimir Putin.
Substantial Transformation Loophole
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(00:04:17)
  • Key Takeaway: The U.S. trade law concept of ‘substantial transformation’ allows Russian fish to enter the U.S. labeled as Chinese product after processing in Chinese plants.
  • Summary: A whole frozen fish block processed into breaded fillets in China receives a ‘Product of China’ label, regardless of its Russian origin. Russia leverages China’s low labor costs and processing expertise to transform its catch into consumer goods like imitation crab and fish fingers. Before the war, about 90% of Russian seafood sold in the U.S. utilized this Chinese processing loophole.
Market Undercutting and Bans
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(00:06:55)
  • Key Takeaway: Russia undercuts global markets by selling fish harvested under less strict environmental and labor regulations at lower prices, negatively impacting U.S. fishermen like those in Alaska.
  • Summary: Russia flooded the market with cheap pink salmon following the invasion, which negatively affected the market for Alaska salmon. While the U.S. implemented bans, the initial effectiveness was limited due to the processing loophole. Subsequent rules have attempted to ban fish coming through the China loophole, but verification remains a challenge.