- Fraudulent Insurance Scheme Puts Baltic Waters at Risk.
- Fake Norwegian Insurer Shields Shadow Fleet from Scrutiny.
- Investigation Uncovers Massive Maritime Insurance Fraud.
One Monday morning in September 2024, an email arrived in the inbox of the Norwegian Financial Supervisory Authority. The sender is a Ghanaian insurance expert who wants to check a Norwegian company before his client signs a contract. The email has an official-looking document attached, complete with the authority’s stamp and logo. But something does not add up, reports Dan watch.
A Gut Feeling That Exposed a Fraud
“Something wasn’t right and I couldn’t put my finger on what it was,” says the Ghanaian insurer, who chooses to remain anonymous. “Maybe I was just following my instincts.”
The authorities in Oslo soon recognize the document as suspicious. It is dated April 2016, but no company by that name was ever registered in Norway at that date. It speaks of non-existent Norwegian legislation, and the individual who signed it has never been an employee of the Financial Supervisory Authority—he might not even be real. The whole document is a forgery.
A Company That Doesn’t Exist
Further inquiry reveals that the company is an empty shell. Though it is supposed to be a genuine insurance company, it has no operations at all, no financial records, and no staff—save for one Bulgarian board member and its Russian proprietor, a businessman currently residing in Saint Petersburg.
Despite its illegitimacy, the firm has sold hundreds of certificates of insurance for oil tankers, some of which are owned by a shadow fleet that operates beyond regular norms. The practice is said to pose a threat to global efforts against oil leaks and environmental disasters.
Deception at an International Scale
Collaborating with Norwegian media, investigative journalists reveal how Denmark and 11 other NATO nations have unwittingly accepted documents from this bogus firm. Danish maritime law professor Kristina Siig calls the discovery deeply troubling.
“I’ve never seen it proven so systematically before. There have been isolated cases, but not on this scale and not this systematically. It’s outrageous. It completely undermines the system,” she says. When contacted for comment, the company responds with a curt email saying that the sole individual who can respond to questions is ill and not available. Several attempts to reach the Russian owner and the Bulgarian board member are ignored.
A False Sense of Security
In March 2025, an oil tanker leaves a Russian port with 100,000 tons of oil on board. As part of an international initiative to stop environmental catastrophes, Finnish officials check the ship’s documents and find them to be forged.
For months, ships had been producing counterfeit insurance certificates without anyone noticing. Experts in maritime law caution that the consequences extend far beyond sanctions violations—these forged policies remove a critical layer of safety checks that legitimate insurers would impose. “Another aspect is that an insurance company would check that safety is in order before agreeing to insure a ship. The security that this provides goes out the window. They are cheating the system,” says Kristina Siig.
Governments Grapple to React
Danish authorities admit that proof of certificates by the fake insurer has been elusive. They now collaborate with Norway and other infected nations to open up further. The Danish Maritime Authority affirms that if these ships involved don’t have legal insurance, sanctions could befall them.
“If, based on dialogue with Norwegian authorities and relevant flag states, it turns out that the ships do not have the conventional insurance coverage, measures will be initiated against these ships in cooperation with relevant partners.”
Challenges in Regulating Shadow Fleet Operations
While Denmark and Finland’s foreign ministries have not commented directly, Denmark reaffirms its commitment to holding shadow fleet operations accountable. Finland’s maritime authority, Traficom, acknowledges the difficulty of identifying fraudulent insurance providers with limited resources.
“We control all the ships we can, but we can’t force them to do more right now. We don’t have the resources. But we are looking at the possibilities to do more during inspections,” says Traficom Maritime Director Sonninen Sanna.
A Web of Deception Across the Seas
Journalists dig up at least 255 ships that have been certified by the rogue insurer. Of them, 76 are proven to belong to Russia’s shadow fleet and cross through Danish waters regularly. The firm has no known financial support to pay claims in case of an oil spill. It is based in St. Petersburg and has Russian-designed branding. Harvard University sanctions expert Craig Kennedy cautions that such fraud exposes the whole Baltic region to danger.
“Sham insurance directly violates this international convention and raises risks for everyone,” he says. According to Kennedy, the issue extends beyond sanctions evasion. “It violates a core principle of global shipping standards, and should be of concern to all coastal and importing countries.”
A Criminal Investigation Unfolds
Regulators first assumed the bogus insurance company to be real because the official permit from the Norwegian Financial Supervisory Authority was attached. However according to investigators, the permit is a forgery, and the company never did have permission to sell insurance in Norway. Even the business address of the company claimed by it is spurious. The Norwegian Shipowners’ Association tried to put an end to the misinformation but couldn’t do that.
Following these revelations, a Norwegian police raid is carried out on March 21, 2025, in Oslo. There are four charges filed, including the Russian proprietor, the Bulgarian board member, and two Norwegian business partners.
Ongoing Investigation and Continued Operations
“The Oslo Police District has started an investigation based on a report from the Financial Supervisory Authority. This has led to further investigations of the reported company and associated persons. Four persons have been charged and are under investigation,” confirms a police spokesperson. The authorities are also probing whether the Russian owner and the Bulgarian board member have breached Western sanctions.
After exposure in the media, several ships have been taken off the company’s website. However, as recently as March 23, 2025, another ship associated with the shadow fleet was added to the list—demonstrating that, in spite of increasing legal pressure, the false insurer remains operational.
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Source: Dan watch
