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Commercial Fishing

HAMPIDJAN SUSPENDS TRADING WITH RUSSIA

HAMPIDJAN SUSPENDS TRADING WITH

Hampidjan suspends trading with Russia. Hampidjan says it strongly condemns Russia’s invasion of Ukraine and the approach to an independent democracy that is currently taking place. Hampidjan has systematically reduced trade with Russian fishing companies, suspended most of them, sends nothing to Russia, and thus contributes to influencing the government’s policies in Russia.

Hampidjan has for decades served Russian customers and to facilitate that transaction, a small sales company was established in Kaliningrad under the name Hampidjan Russia. There are only two employees in Kaliningrad and one in Murmansk, and they were responsible for the completion of contracts with Russian fishing companies. However, transactions were directly between the subsidiary Hampiðjan Iceland and customers in Iceland. The arrangement has been such that the cost of operating the office from Iceland was paid and it has been the only income Russian the sales company. Since the beginning of February, there has been no payment to Hampidjan Russia, so its operations are down. No agreements have been made and no transactions have taken place in recent months. Russian trawlers have not been received here in Iceland, but as a rule about 15 ships have stopped by to receive services before heading to the centres southwest of Icelandic territorial waters. All references to Russia have been removed from Hampidjan’s websites and the Russian website has been closed.

Hampiðjan has subsidiaries in 15 countries, including the Faroe Islands, Norway, Denmark and Spain. Sales from Denmark to Russian customers have been discontinued, however, the subsidiaries in the Faroe Islands, Norway and Spain comply with national government policies, and in those countries, services to Russian fishing vessels in Norwegian, Faroese and Spanish ports are exempt from trade restrictions. In particular, the Norwegian government considers it important because Russia and Norway have borders together and therefore share fish stocks in the Barents Sea.

In the past year, sales to Russian fishing companies accounted for 4.37% of the total turnover of the Hampidjan group. It was an unusually high sales because many sales were delayed due to the pandemic and brought it in in 2021 instead of 2020, so this year’s sales were not expected to reach 2021. Much of that transaction takes place at the beginning of each year, so it had been sold considerably this year before the invasion began, and the impact of the sales contraction does not fully emerge in the current year.

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