Firm issued fake insurance for Russian oil tankers, Norway says

(Reuters) — The insurance issued to dozens of aging oil tankers used by Russia to skirt international sanctions was bogus, according to Norwegian authorities now investigating the small company behind the allegedly forged documents.

Norway-registered Romarine AS purported to be an insurance provider with a website listing dozens of tankers believed to be part of Russia’s shadow fleet, including vessels under Western sanctions.

However, the company was not registered as an insurance provider by Norway’s Financial Supervisory Authority (FSA), the agency said.

Western nations have imposed sanctions on hundreds of ships they suspect Russia is using to avoid price cap restrictions on exports of crude oil and other cargoes.

Such vessels are not regulated or covered by conventional Western insurers, posing the risk of unsafe tankers and environmental damage in the event of a wreck.

What makes the matter of Romarine stand out is that the company made an effort to show the tankers involved had Western insurance coverage in the event of pollution or sinking.

“It’s an extremely unusual case,” Jo Gjedrem, an FSA official, told Reuters.

The FSA sent a warning to Romarine in January, but the company failed to respond, the authority told Reuters, prompting it to issue an order March 4 instructing the company to halt operations.

Romarine, in response to emailed questions from Reuters, said it was aware of the FSA’s March 4 order and that it had replied “with some delay through our lawyers.” Romarine said it operated in line with applicable regulations, but that it had decided to stop taking new business until there is “positive feedback from the authority.” The FSA said it had received no reply from Romarine.

Romarine AS is fully owned by Andrey Mochalin, a Russian citizen and former employee of Norwegian insurer Hydor AS, Norwegian commercial database Proff shows.

Johan Gjernes, Romarine’s former chairman and Hydor AS’s chief business officer, told Reuters by email that Romarine was sold to Mr. Mochalin who owns it outright. Mr. Gjernes resigned from Romarine in August 2023, while Mr. Mochalin became its chairman a year later, Norway’s official company registry shows.