Iceland has imposed sanctions on Russian fishing companies Norebo and Murman Seafood, following the lead of Norway and the E.U.
Norebo and Murman have allegedly carried out espionage activity for Russia in European waters, and in May, the European Union placed a ban on the two companies. Among several reasons for the ban, the E.U. explained that ships owned by Murman Seafood had maintained “regular presence close to Norwegian critical infrastructure and military sites.”
Norway followed the E.U.’s lead in July by banning the same two companies, and the Faroe Islands also soon began debating whether to do the same.
"Within a short time, the government will ask the parliament to extend the current authorization so we can implement the same sanctions," Faroese Prime Minister Aksel V. Johannesen said in a recent speech to parliament.
Now, Iceland has initiated sanctions, confirming to Icelandic broadcaster RUV that the companies’ assets have been frozen and ships belonging to the companies that have been sailing on the border of the Nordic nation’s exclusive economic zone have been denied access to its ports.
One complicating factor to Iceland’s sanctions is that Norebo once held a controlling stake in Vélfag, an Icelandic seafood processing equipment manufacturer. More than half of the company was bought by Norebo in 2022 – a few months before Russia invaded Ukraine.
Norebo is owned by Russian businessman Vitaly Orlov, who is reportedly part of Russian President Vladimir Putin’s inner circle.
Norebo then sold its Vélfag shares in 2023 to Titania Trading, who was owned at the time by Vitaly’s son Nikita.
Though Titania is now owned by banker and financial advisor Ivan Nicolai Kaumann, the potential existing link to the Orlovs was still enough for Iceland to place sanctions on Vélfag in late July.
“I don't want to comment on individual cases other than to say yes, that's true, and this is the first time that Icelanders have faced a potential freezing of funds. We are simply working on it,” Icelandic Foreign Minister Þorgerður Katrín Gunnarsdóttir said, per RUV. “As I said earlier, this is sensitive, and there are many things to consider. There are enormous overall interests for the national economy involved, and we are also looking to other countries, not least the Nordic countries, and we are simply doing that work right now.”
Vélfag Managing Director Trausti Árnason responded to the sanctions by saying that the company has fully severed ties with Norebo and the Orlovs and called for a suspension of the penalties.
After further investigation, on 11 August, Vélfag received temporary exemptions from the Icelandic government on trade sanctions and freezing of funds, and the firm is working to make those exemptions permanent.
