• Norwegian authorities have uncovered a scam involving fake insurance documents allowing Russian oil tankers to circumvent sanctions.

• Romarine AS, a small firm, is under investigation for providing forged insurance certificates to dozens of ageing tankers.

• The case highlights the risks associated with unregulated tankers and the potential for environmental disasters.

Uncovering the fraud

In a startling revelation, Norwegian authorities have uncovered a fraudulent scheme involving fake insurance documents for Russian oil tankers. The investigation, led by Norway’s Financial Supervisory Authority (FSA), targets Romarine AS, a company that purported to be an insurance provider for dozens of ageing tankers believed to be part of Russia’s shadow fleet.

The FSA became aware of the issue after receiving an inquiry from overseas last September, asking about a document carrying the FSA’s letterhead that certified Romarine as a vessel’s insurer. “We immediately saw that it was false,” said Jo Gjedrem, an official at the FSA. The letterhead had been copied and pasted into the forged document, citing non-existent Norwegian law and bearing a false signature and stamp.

In response to the inquiry, the FSA sent a warning to Romarine in January, but the company failed to respond. This prompted the authority to issue an order on March 4, instructing the firm to halt operations. Romarine, in an emailed reply to Reuters, acknowledged the FSA’s order and stated that it had responded “with some delay through our lawyers.” The company claimed it was operating in line with applicable regulations but decided to stop taking new business until receiving “positive feedback from the authority.”

Key Information:

Company Details:

• Name: RO MARINE AS
• Business Address: R&D/Insgaten 25, 0158 Oslo, Norway
• Postal Address: Postboks 357 Sentrum, 0101 Oslo, Norway
• Organization Number: 917021481
• Home Country: Norway
• Website: www.romarine.no
• Supervised by: Finanstilsynet, Norway
• Approval Date: 14 April 2016
• License Type: Non-life insurance company

The shadow fleet

Romarine’s website, as of early March, listed at least 30 oil tankers subject to U.S., EU, or UK sanctions, including the oil tankers Captain Kostichev and Ionia. These vessels were presented in certificates of insurance to Russian port authorities. Although the Captain Kostichev has since been deleted from the website, the Ionia remains listed.

The Ionia, a Gabon-flagged tanker, provided a certificate of insurance to Russian port authorities in Primorsk on February 2, listing Romarine as its insurance provider. Similarly, the Panama-flagged Captain Kostichev presented a certificate dated March 24 to port authorities in De Kastri, also listing Romarine as its insurer. It turns out to be a fraud.

Investigation and consequences

The FSA posted a warning on its website against using Romarine’s services on March 25. Oslo police have launched an investigation into the company’s business activities after receiving a complaint from the FSA. The police are investigating four people – two Norwegian citizens, one Bulgarian, and a Russian – on suspicion of creating and using falsified documents and performing insurance mediation activities without a license.

The investigation has raised concerns about the safety and environmental risks posed by unregulated tankers. “It’s an extremely unusual case,” Gjedrem told Reuters. The unregulated nature of these tankers means they are not covered by conventional Western insurers, increasing the risk of accidents and environmental damage.

The case of Romarine AS underscores the challenges faced by international authorities in regulating the shadow fleet of oil tankers used by countries like Russia to circumvent sanctions. The potential for environmental disasters and the need for stringent oversight are critical issues that demand attention.

As the investigation unfolds, the case serves as a stark reminder of the complexities and risks associated with the global oil trade. The use of fake insurance documents not only undermines regulatory efforts but also poses significant threats to safety and the environment.

Sources include:

Reuters.com

Reuters.com

Reuters.com