According to a press release, the Ministry of Foreign Affairs in Norway has rejected the application for a exemption in order to insure the Havila Capella.

The issue stems from Russian-linked financing for the Norwegian coastal ship that has resulted in insurance coverage challenges. 

In a decision made by the Ministry of Foreign Affairs on April 26, it became known that they had granted Havila Kystruten a exemption from the sanctions regulations to operate Havila Capella for six months.

he exemption did not entail any right to insure the ship and on Monday the Ministry of Foreign Affairs rejected the shipping company’s application to take out insurance on the grounds that being able to take out insurance in itself would mean that a property is made available to the registered owner.

“This is very disappointing and means that we still have an unresolved situation for Havila Capella. Based on this, we have no choice but to cancel Havila Capella’s next roundtrip along the Norwegian coast, which was scheduled to start in Bergen on May 15,” said CEO Bent Martini.

“We are very sorry for the situation that has arisen beyond our control, and for the consequences this means for the coastal population, our passengers, employees and suppliers.”

Martini also added that Havila Kystruten is confused by the Ministry of Foreign Affairs’ assessment.

“As the sanctions are set up, any insurance payment will not benefit the ship’s registered owner. In the event of a total breakdown, other parties will receive the insurance payment. We can do nothing but accept the authorities’ assessment, but disagree with the decision,” he explained.

The company said it will now continue the work of finding a solution to get Havila Capella back in service on the Norwegian coast.

The Havila Castor, meanwhile, a sister ship,. has arrived in Norway and is ready to sail.