How your favorite fish sticks might be funding Russia's war - The Indicator from Planet Money Recap

Podcast: The Indicator from Planet Money

Published: 2026-02-26

Duration: 9 minutes

Guests: Jessica Gephardt

Summary

Despite U.S. bans, Russian fish continues to enter the American market through Chinese processing plants. This loophole allows Russia to sustain its seafood exports, indirectly funding its war efforts.

What Happened

Pollock, a popular fish used in products like imitation crab and McDonald's Filet-O-Fish, is one of the many species caught in the North Pacific. While some is caught by American fishermen, much of it comes from Russian waters. Despite U.S. sanctions on Russian seafood following the invasion of Ukraine, Russian fish is still making its way into the U.S. market through a loophole involving Chinese processing plants.

The process involves Russian-caught fish being sent to China, where it's processed into products like fish sticks and canned salmon. Once processed, these products are labeled as Chinese and exported to the U.S., bypassing the sanctions. This practice has been ongoing, even before the war in Ukraine, due to China's efficient processing capabilities and low labor costs.

Jessica Gephardt, an assistant professor at the University of Washington, explains that the concept of 'substantial transformation' allows the origin label to reflect the country where the fish was last processed rather than where it was caught. This makes it difficult to enforce bans effectively, as the true origin is obscured.

Moreover, Russia's seafood industry benefits from less stringent environmental and labor regulations compared to the U.S., enabling them to sell at lower prices globally. This, coupled with the loophole, allows Russia to continue funding its war in Ukraine through seafood exports.

Gephardt's study found that before the war, about 90% of Russian seafood entering the U.S. came via China. Despite Biden's initial ban, this figure hasn't significantly decreased, highlighting the ineffectiveness of the current bans.

While the U.S. government has attempted to tighten regulations, including banning fish coming through China, the system remains imperfect. Strengthening these bans requires more robust validation systems, such as audits and scientific tests, to ensure compliance and transparency.

Amidst these challenges, U.S. fishermen, particularly in Alaska, face economic pressure as Russia floods the market with cheaper fish, impacting local fisheries. The episode underscores the complexity of international trade regulations and their enforcement, especially in industries with intricate supply chains.

Key Insights

• Pollock caught in Russian waters becomes 'Chinese' through processing in China, sidestepping U.S. sanctions meant to restrict Russian seafood imports. This loophole allows Russian fish to enter the U.S. market, funding Russia's war efforts despite sanctions.
• The concept of 'substantial transformation' means that fish processed in China is labeled as Chinese, not Russian, obscuring its true origin. This labeling practice complicates enforcement of bans and allows Russian seafood to continue flowing into the U.S.
• Despite the Biden administration's ban on Russian seafood, 90% of it still enters the U.S. via China, showing the ineffectiveness of the current regulatory measures. More robust systems like audits and scientific tests are needed to ensure compliance.
• U.S. fishermen, especially in Alaska, struggle economically as cheaper Russian fish floods the market. This situation highlights the tension between international trade regulations and the realities of competitive pricing in global supply chains.

Key Questions Answered

How does Russian seafood end up in the U.S. despite import bans?

Russian seafood enters the U.S. market through processing plants in China. These facilities process Russian-caught fish, which is then labeled as a product of China and exported to the U.S., evading sanctions.

What role does China play in Russian seafood exports?

China's role involves processing Russian-caught fish in its specialized plants. This process allows the fish to be labeled as Chinese, enabling Russia to bypass U.S. import bans and continue exporting its seafood globally.

Why is Russian seafood still a threat to U.S. bans?

The concept of 'substantial transformation' allows processed seafood to be labeled by the country where it was last processed. This legal loophole enables Russian fish to enter the U.S. market labeled as Chinese, undermining the effectiveness of U.S. bans.