Icelandic tech company Vélfag, which produces a range of systems for both shore-based and at-sea processing, has been granted a few days’ grace in its efforts to get sanctions lifted. The company had previously been part-owned by sanctioned Russian fishing company Norebo.
The Ministry for Foreign Affairs has extended Vélfag’s temporary exemption from restrictive measures until 24th October, while the Ministry prepares its final decision. The company has been invited to present formal objections and comments before a conclusion is reached.
Vélfag’s comprehensive written response fully rejects the premises outlined by the Ministry, and refers to both Icelandic administrative law, and relevant case law of the Court of Justice of the European Union (CJEU), stressing that the burden of proof lies with the authorities, that retroactive application of sanctions is prohibited under EU law, and there are no real ownership links or control between Vélfag and any listed entity.
The company’s majority owner has also obtained an independent legal opinion from leading experts in Brussels specialising in EU law and the implementation of international sanctions, who state that the decision of the Icelandic authorities does not comply with EU law or established EU practice, as Vélfag was neither owned nor controlled by any listed entity at the time of the measures, and EU restrictive measures cannot be applied retroactively, according to the principles of the rule of law and CJEU case law.
‘The freezing of Vélfag’s assets falls outside the material and temporal scope of EU restrictive measures. The Icelandic authorities’ decision constitutes an unlawful retroactive extension of Regulation (EU) No. 269/2014,’ the opinion states.
The Chairman of Vélfag’s board expressed his expectation that since a legal opinion from one of Europe’s leading law firms is available, the Icelandic authorities will evaluate this with care and finally lift the sanctions.
