15. Dec '24

Danish companies buy fish for millions from Russian oligarch

Since Russia’s invasion of Ukraine in 2022, Danish companies have bought fish for millions. Three of them from companies belonging to a Russian oligarch suspected of espionage. “It’s necessary to use Russian fish,” says the director of one of the Danish companies.

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Three companies under the Norebo Group are suppliers to Danish fishing giants that produce fish fingers, stuffed plaice and fish for McDonalds. However, they say that no Russian fish ends up with customers who say no thanks. Illustration: Stine Mørch

Do you know anything about fish from Russia that we should know about?

Since Russia’s invasion of Ukraine, three Danish companies have bought cod worth millions from Russian oligarch Vitaly Orlov, who has ties to Russian President Vladimir Putin’s inner circle and is suspected of spying in the North Sea and the Netherlands.

Danwatch and Ekstra Bladet can document this based on access to files and logistics data from C4ADS – an American interest organisation that exposes illegal networks.

It is a problem of principle that we allow import or transit operations with Russian-caught fish when we know that 10-20 percent of the profits are used to buy munitions.
Frode Nillsen
Professor, Nord University Business School

Unlike the US, for example, the majority of Russian fish is not subject to EU sanctions. And the Russian fishing industry is still going strong, according to figures from Russia’s Ministry of Fisheries, the Russian fishing industry contributed a total of 7.6 billion Danish kroner in taxes and social contributions to the Russian treasury in 2023.

Which is why trade in Russian fish is problematic, experts say.

“This is a problem,” says Birthe Larsen, associate professor of economics and expert in sanctions at CBS, “the Russians do not feel a negative impact on the economy to the same extent and will therefore feel less pressure to stop the war, which is the whole purpose of sanctions.”

Professor at Nord University Business School, Frode Nillsen, who is an expert in food systems and Russia, agrees:

“It’s a problem of principle that we allow import or transit operations with Russian-caught fish when we know that 10-20 percent of the profit is used to buy munitions,” says Frode Nilssen.

The amount of Russian fish purchased by Danish companies

  • Since Russia’s invasion of Ukraine in February 2022 and until October this year, Danish companies have imported Russian fish worth DKK 532 million.
  • Danwatch and Ekstra Bladet can reveal that in 2022 and 2023 alone, three Danish companies bought fish worth at least DKK 137 million from a Russian oligarch suspected of espionage:
Jeka Fish (2022 & 2023): Cod for 104 million DKK
A. Espersen (2023): Alaska pollock for 26 million DKK
Boca Seafood (2003): Cod for 6.9 million DKK
  • The three companies have purchased Russian fish from LLC Roliz, JSC Sakhalin Leasing Flot and JSC YAMSy, all subsidiaries of Russia’s largest company in the fishing industry, Norebo Group.
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Sources: Statistics Denmark, the Danish Veterinary and Food Administration and C4ADS.

“Hard to avoid”

The Danish fishing giant A. Espersen imported 732 tons of Alaska pollock in 2023 at a value of DKK 26 million.

Director of A. Espersen, Tino Bendixen, writes in an email to Danwatch that “the company was among the first Danish companies to phase out their production and sales in Russia”, but they still import fish:

“We buy fish from Russian fishing companies that – like Espersen and other companies in our industry – are an integral part of the global food industry supply chain. We act within the framework that is politically determined and we follow all sanctions.”

There are no Russian fish in the products that the company sells in Denmark under the name Rahbek, says Tino Bendixen and confirms that it is generally difficult to know whether you as a consumer are eating Russian fish:

“For the vast majority of fish products, consumers cannot know for sure who owns or operates the ships that have landed and unloaded the fish in a Norwegian or Russian port, for example.”

STATEMENT from Tino Bendix, CEO of A. Espersen

First of all, we would like to inform you that Espersen has previously had both production and sales in Russia. However, Espersen was also among the first Danish companies to discontinue both on its own initiative in the spring of 2022 – shortly after Russia’s invasion of Ukraine.

This decision has had financial consequences for our company. But it was the right decision to make, and we stand by it.

The war affects us deeply and we have a significant proportion of Ukrainian employees at our factories in Poland and Lithuania.

We tried to reach you briefly by yesterday Wednesday to clarify some details, but without success. We hope the following answers your questions.

1) The considerations you make when continuing to buy fish from a country that is sanctioned and where several Danish companies have stopped their activities due to the war against Ukraine. Why are you continuing?

Sales and production of e.g. food and medicine are not covered by the politically determined sanctions against Russia. As already mentioned, Espersen no longer has any sales to or production in Russia.

We buy fish from Russian fishing companies that – like Espersen and other companies in our industry – are an integral part of the global food industry supply chain. We act within the politically determined framework and we follow all sanctions.

We note that Russia and Norway have agreed to reduce the catch quota in the Barents Sea by 25 percent for 2025 to secure the population. This is the lowest quota in decades and, all else being equal, it means that we will import significantly smaller quantities than before.

2) How much of the Russian fish is used in your products in Denmark? Which products?

The products Espersen sells under our own Rahbek brand do not contain Russian-caught fish. This is an active choice we have made as a company and have communicated to our customers.

Our parent company also produces for customers who sell the products under their own name and brand. We would like to elaborate on this a bit more in detail:

The Danish Veterinary and Food Administration asked if we had any objections to your request for access to documents regarding catch quotas and the origin of fish products. We have replied to the Danish Veterinary and Food Administration that we have no objections in this regard, as we follow all sanctions and legislation.

A. Espersen A/S, as the parent company, purchases all raw materials used in our production in Poland, Lithuania, England, Vietnam and Denmark. The catch certificates that the Danish Veterinary and Food Administration have given access to therefore concern raw materials purchased for the production of non-Rahbek products. Espersen primarily produces private label for other product owners, where we follow their recipes and requirements for raw materials.

3) How will the consumer know if they are really investing in a Russian fish when they buy one of your products?

As already mentioned, the products we sell under Espersen’s own brand, Rahbek, do not contain Russian-caught fish.

Unless a product owner chooses to disclose this publicly or promote his product as non-Russian, consumers cannot necessarily tell from the packaging.

For the vast majority of fish products, consumers cannot be sure who owns or operates the ships that have landed and unloaded the fish in a Norwegian or Russian port, for example. Russian ships are authorised to unload in three ports in Norway, but the origin of the raw material will still be listed as Russian.

4) Suspected of espionage: Several ships from Norebo Group’s fleet have been linked to suspicions of espionage, which is why Russian ships can no longer dock in the Netherlands.

In 2023, Nordic media reveals that at least 50 Russian ships have been collecting intelligence in NATO waters over the past ten years. The ship Taurus, owned by Norebo Group, is one of them. Another example occurred in May 2024, when the Dutch media Pointer revealed suspicious activity among Russian fishing vessels, including the Arctic Princess. A reefer ship that also belongs to Norebo Group. On 14 May 2024, Dutch Defence Minister Kajsa Ollongren told the Dutch parliament that Russian fishing vessels were no longer welcome in Eemshaven.

– What is your comment to this?

At Espersen, we have a clear and unambiguous sanctions policy that we adhere to and we follow all our suppliers closely. If one of our suppliers appears on the sanction lists issued by the authorities, we will terminate the collaboration. We have done this in the past and we will not hesitate to do so again if it becomes relevant.

In addition, there are a number of maritime and commercial authorities whose purpose is to regulate transportation by sea and the actual fishing of the associated vessels, respectively. We are not aware of any facts or documentation from the above authorities to support the claims made regarding Norebo.

Espersen complies with all sanctions against Russia (and other countries) down to the smallest detail and is in continuous dialog with the authorities to ensure that we continue to do so. Furthermore, as previously mentioned, we were among the first Danish companies to discontinue both sales and production in Russia. And our own products – Rahbek – do not contain Russian raw materials.

I hope the above answers your questions. Otherwise, please feel free to write again.

Russian fish worth 405 million

Jeka Fish, which you may know from the ‘Havet’s’ fish cakes, has purchased Russian cod for 104 million Danish kroner since 2022. And it’s not the first time. Since 2018, Jeka Fish has purchased around 13,000 tons of cod for a total value of DKK 405 million.

“Unfortunately, the business that Jeka Fish runs does not have a basis for existence without imported cod,” writes CEO Halldor Arnason in an email to Danwatch.

“Russian cod is necessary if we want to maintain our production and the jobs associated with it.”

He also emphasises that customers who do not want Russian fish will not get it.

Unfortunately, the business that Jeka Fish runs does not have a basis for existence unless it is built on imported cod.

High-quality products are a prerequisite for even being in the current market. That is why we predominantly use line-caught cod in our production, which, in addition to providing the best quality, is one of the most gentle types of fishing. The majority of the cod comes from the Pacific Ocean, where Russian and American ships account for more than 90% of the catches.

It is a fact of life in our industry that the supply of raw materials is controlled by quotas. Until 2019, the US was the main supplier of our Pacific cod, but due to the quota development, where quotas in the US were reduced and quotas in Russia were increased to more than 50 percent of the total catch, Jeka Fish started buying a greater share of Russian cod.

Jeka Fish operates in a market with very high scarcity of, and competition for, raw materials. To purchase the quantities of line-caught Pacific cod that Jeka Fish uses, it has not been possible to bypass Russia.

Russia is still the world’s largest supplier of whitefish. In the EU, the self-sufficiency rate for cod is a modest 5% (from Danish and EU fishermen), while 95% is imported. More than 30% of imported supplies, corresponding to 238,000 tons, are estimated to be of Russian origin when we include the Russian cod that goes through China before final export to the EU.

We comply with all sanctions against Russia, but the situation described above means that if Jeka Fish wants to maintain its production and the associated jobs etc. it is currently necessary to use Russian fish.

However, we have taken various measures to make the business less dependent on Russia. These include relatively more purchases of cod from other origins, and the production of fish species other than cod, which – like our main product – do not need to be line-caught and which can therefore be purchased in Denmark and in countries other than Russia. These are initiatives that take time to develop, but we expect 2025 to bring a breakthrough in this work, where the share of Russian raw materials is expected to decrease significantly. Over 95% of the cod products produced by Jeka Fish are exported out of Denmark. No Russian fish is used for customers who specifically do not want to buy Russian raw materials, including a number of Danish supermarkets. The task of ensuring that the individual end customer can opt out of Russian fish is – if applicable – the responsibility of the supermarket.

Did you know that …

  • Well-known billionaire Karsten Ree and the rest of the Ree dynasty have bought Russian fish for millions since the start of the war in Ukraine.
  • Karsten and his sons Christian, William and Oliver Ree together own just over 20% of the company Jeka Fish, which is headquartered in Lemvig and produces fish cakes under the ‘Havet’s’ brand, which can be purchased in a number of Danish supermarkets.

The third Danish company is Boco Seafoods, a company under Kangamiut Seafood in Dronninglund, which in 2023 purchased 203 tons of cod at an estimated value of DKK 6.9 million. The director of Kangamiut Seafood, Rasmus Grønborg Bak, says that Boco Seafood is in liquidated and so are the Russian suppliers.

However, trade data shows that both Kangamiut Seafood and another subsidiary, DanSea Nordic A/S, most recently purchased Russian fish in 2023.

“In relation to your question about ethics, we are very aware of the dilemma we face,” writes Rasmus Grønborg Bak in an email.

“On the one hand, the EU explicitly exempts basic foods, including fish, from Russian suppliers from sanctions, partly due to food safety concerns. On the other hand, as a company we do not want to support the Russian economy, which is why we have reduced the number of Russian suppliers to just a few,” writes the CEO, who did not wish to be interviewed.

STATEMENT from Rasmus Grønborg Bak, CEO of Kangamiut Seafood:

Thank you for your email and questions, which I will try to answer.

However, as we have previously written, we do not disclose details about our suppliers and customers due to business and competitive considerations. I hope you understand this.

In relation to your specific question regarding Boco Seafood, however, I can inform you that the company is no longer active, as all activities were discontinued in the second quarter of 2023. Thus, we no longer trade with the Russian company in question.

In addition, I can say that already in 2022, as a consequence of the war in Ukraine, we decided to make ourselves independent of purchases from Russian suppliers. At the time, we made a plan for this, which we are still following. We have since reduced the number of Russian suppliers to very few – and the few we still do business with are continuously screened by a leading Danish law firm to ensure that we comply with all applicable sanctions rules.

In addition, we continue to follow EU recommendations, and we are in continuous dialogue with the authorities and our industry association to ensure that no rules are violated.

In relation to your question on ethics, we are very aware of the dilemma we face. On the one hand, the EU explicitly exempts basic foods (including fish) from Russian suppliers from sanctions, partly due to food safety concerns. On the other hand, as a company, we do not want to support the Russian economy, which is why we have reduced the number of Russian suppliers to very few.

In relation to the above dilemma, as a values-based family-owned business, we have tried to make the best possible decisions in a difficult situation that is not black and white. We stand by the difficult choices we have made.

We do not want to participate in an actual interview, but I hope the above answers your questions

Sincerely yours

Rasmus Bak

Here are the Danish importers of Russian fish

  • A. Espersen
  • Boco SEAFOOD A/S (subsidiary under Kangamiut Group)
  • Sirena
  • Nordic Seafood A/S
  • SEPIO
  • North Atlantic Shipping
  • Jeka Fish
  • DanSea Nordic A/S (subsidiary under Kangamiut Group)
Source. Access to TRACES and IUU lists via the Danish Veterinary and Food Administration

Controversial fish

The three companies have purchased Russian fish from LLC Roliz, JSC Sakhalin Leasing Flot and JSC YAMSy, all subsidiaries of Russia’s largest company in the fishing industry, Norebo Group.

Norebo Group is owned by the Russian tycoon Vitaly Orlov, who is a controversial character, partly because several of the ships in Norebo Group’s fleet are suspected of espionage in the Netherlands and Northern Norway by several media.

This is denied by Sergey Sennikov, CEO of Norebo Management Company.

“Norebo is a private fishing company that advocates responsible corporate behaviour and has no ties to any government. Norebo, its group companies and employees have never been, are not and will not be involved in espionage or similar,” writes Sergey Sennikov.

“Such accusations are fantasy and are bordering on populist paranoia. Norebo is only engaged in the production and supply of seafood for human consumption.”

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In 2023, Nordic media reveal that at least 50 Russian ships have been collecting intelligence in NATO waters over the last ten years. The ship Taurus, owned by Norebo Group, is suspected to be one of them. Photo: Screenshot from Facebook

Russian oligarch under investigation for espionage

By trading with Russian companies, Danish companies risk supporting President Vladimir Putin’s war against Ukraine. “Vitaly Orlov is part of Putin’s outer circle,” explains Jakob Tolstrup, Associate Professor and PhD at the Department of Political Science at Aarhus University.

The outer circle earns incredibly large sums of money, but they do not have close connections to Putin and are thus dependent on having contacts in the inner circle to become “vulgarly rich”, as Jakob Tolstrup puts it:

“Vitaly Orlov has a very important contact to Putin’s inner circle, as he allegedly collaborated with oligarch Gleb Frank, whose father-in-law, Gennady Timchenko, is a big shot.”

According to Forbes, Gennady Timchenko is worth DKK 165.8 billion and owns several companies, including the natural gas company Novatek.

“But more interestingly, Gennady Timchenko has been part of Putin’s inner core since the 1990s,” says Jakob Tolstrup.

Fishing vessels with suspicious sailing patterns

In late 2022, the Kremlin announced a sudden redistribution of fishing quotas, with Norebo Group receiving the largest share. According to several media outlets, this was due to effective lobbying of the Kremlin. Norebo Group’s close relationship with the Russian government is also reflected in the many loans granted to Norebo by the state-controlled bank Sberbank, which has been crucial to the company’s rapid growth. Loans that Norebo itself has also addressed on social media.

The following year, Vitaly Orlov and Norebo Group came under scrutiny in the media for more shady activities. In 2023, the Nordic media, DR, NRK, SVT and Yle, revealed that at least 50 Russian ships had been collecting information in NATO waters over the last ten years. The ship Taurus, owned by Norebo Group, was one of them.

In December 2022, Taurus was docked in Tromsø Harbour in northern Norway, where it delayed its departure several times until an American submarine appeared and Taurus followed the submarine as it left Tromsø.

One of Taurus‘ many unusual sailing patterns that led a former intelligence agent to tell the Nordic media that it was a case of “espionage”.

Another example is from May 2024, when the Dutch media Pointer revealed suspicious activity among Russian fishing vessels, including the Arctic Princess. A reefer ship, also belonging to Norebo Group, which became central to the media’s investigation because it was close to military installations and ports of call in the Netherlands.

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The reefer ship Arctic Princess, belonging to Norebo Group, has been suspected of espionage. Photo: Vesseltracker / Marcel Coster

No more Russians in Dutch ports

In May 2024, the Dutch Minister of Infrastructure and Water Management, Mark Harbers, told the Dutch parliament that Russian fishing vessels were no longer welcome in Eemshaven.

“Future requests for dispensations for Russian-flagged ships to enter a Dutch port will no longer be granted,” Harbers said.

PET, the Danish Security and Intelligence Service, has no comment on specific companies, people or cases, but writes in an email to Danwatch:

“PET is very aware of Russia’s ongoing attempts to obtain products and technology from Western countries that can be used in Russia’s military programmes and the industries that support Russia’s military.”

PET has no comments on specific companies, persons or cases.

In general, we can inform you that PET is very aware of Russia’s ongoing attempts to obtain products and technology from Western countries that can be used in Russia’s military programmes and the industries that support Russia’s military.

The introduction and tightening of sanctions against Russia means that Russia’s ability to acquire foreign technology through direct imports has been significantly weakened. But despite the pressure from the sanctions, Russian networks still manage to circumvent the sanctions to a certain extent by, among other things, redirecting products and technology via third countries and exploiting Russian access and agreements with countries where access to Western technology is available.

The Russian networks are skilled, and illegal procurement is therefore often carried out by Western companies unwittingly exporting products, technology or technical assistance via intermediaries. PET also sees that Russia makes extensive use of front companies in third countries to hide the connection to the Russian market. Some companies are set up directly to circumvent sanctions, while others are already established companies with an interest in reselling imported goods to Russia. The Russian networks use different sales agents, distributors and front companies in different countries in order to disguise the real end-use of Danish-made products and the traces to Russia.

PET assesses that the Russian authorities – including the Russian intelligence services – support the systematic acquisition of products, knowledge and technology to be used to strengthen the Russian military.

Documentation

The catch certificates that document our Russian fish

Every time a consignment of fish is imported to Denmark, it is accompanied by a catch certificate that documents the exporter and the importer. The ship that caught the fish, the ship that transported the fish and the customs authority that granted access to the country. Information that is not publicly available and the packaging only states in which waters the fish was caught.

A Espersen Catch certificate V01
Catch certificate regarding fish caught by Norebo and purchased by A. Espersen.

Below we have gathered information from all certificates regarding the Danish company A. Espersen’s purchase of Russian fish.

Source: File insights and logistics data from C4ADS

Comment after deadline:

According to several media outlets, the Kremlin announced a sudden redistribution of fishing quotas in 2022, with Norebo Group receiving the largest share, allegedly after effective lobbying of the Kremlin. This was refuted by Norebo Group spokesperson Sergey Sennikov after the article’s deadline:

This is incorrect: Fishing rights in Russia are allocated for a long period by agreement with the state (in line with other fishing nations), where a share of each company in a TAC for each fish stock is set. . Investment quotas were distributed as a new regulation for some stocks much earlier than 2022, and in 2021 we received a small investment quota of cod and haddock for investment and construction of a processing plant in Murmansk (it is less than 10% of the plant’s annual capacity and the rest we provide from our quotas), which means that this amount was deducted from our historical quota. So we did not receive any additional quotas in 2022, as it is mentioned due to “redistribution of fishing quotas”.