Vélfag provides technical support, spare parts, and maintenance to the fishing fleet.
The company Vélfag ehf., which specializes in technological services and solutions for the maritime sector, has announced its decision to temporarily suspend its operations, along with the activities of its employees, while awaiting a verdict in the company's case against the Icelandic state.
The Ministry of Foreign Affairs has rejected the extension of Vélfag ehf.'s exemption from coercive measures and accused the Icelandic company of failing to provide sufficient documentation regarding the change of ownership and of not demonstrating a willingness to cooperate.
Furthermore, according to Vélfag, the Ministry has allegedly blocked access to its own funds and made it "impossible" to carry out daily operations, including employee payments and customer service.
On the contrary, the company states that it has already submitted all the data requested by the ministry. "We regret that we are unable to serve our Icelandic and international customers in the meantime, including shipping companies that rely on our services and spare parts," reads a statement.
Vélfag assures that none of the beneficial owners of the company or its parent company – neither Ivan Kaufmann, owner of Titania Trading Ltd., Titania itself, nor Nikita Orlov, former owner of Titania – are on any sanctions list.
The only company that is on sanctions lists and was its former parent is Norebo JSC, a Russian company specialized in fisheries and seafood exports, with which it claims to have no connection whatsoever.
Finally, Vélfag has provided details from a letter issued by Arion Bank, which states that the freezing of the funds resulted from instructions from the Ministry of Foreign Affairs and that the ministry is the only authority with the legal power to decide on lifting the freeze.
"Meanwhile, an Icelandic high-tech company is stuck in a state of anarchy for which no one is taking responsibility," the company states in the same statement.