Icelandic processing equipment supplier Vélfag has been forced into a shutdown following a decision by the Ministry of Foreign Affairs to end its suspension from sanctions. Staff have been sent on leave while the company waits for the outcome of its court hearing against the Icelandic state.
According to a Vélfag representative, the decision deprives the company of access to its own funds, which consequently forces it to suspend activity – including paying staff salaries and providing services to customers at sea and ashore who use Vélfag’s range of fish processing systems.
‘We are unfortunately not able to service our Icelandic and international customers, including fishing companies that rely on our services and spare parts,’ the company’s representative stated.
The company is adamant that it has provided all of the necessary documents to confirm its status, while the Ministry states that sufficient evidence has not been provided of the change of ownership from sanctioned Russian seafood group Norebo to the current majority shareholder, based in Switzerland. The Ministry states that the company has failed to cooperate.
‘The claim that these documents have not been handed over or that Vélfag has not been willing to cooperate is simply untrue,’ Vélfag’s representative said, stating that neither Ivan Kaufmann, owner of Titania Trading Ltd., Titania itself, nor Titania’s former owner Nikita Orlov are on any sanctions list.
‘The only sanctioned entity is Norebo JSC, the parent company of Norebo Overseas, which sold its holding in Vélfag on 19th July 2023 – more than two years ago,’ Vélfag states.
‘In the meantime, this high-tech company is at a standstill and nobody is accepting responsibility for this.’
