The case in summary: The government is using the Security Act to stop a possible sale of the Søre Fagerfjord property in Svalbard. This for fear of damaging effects on national security interests. The decision has been made in accordance with Section 2-5 of the Security Act, and means that all attempts at negotiations and purchases, both related to the property and the company, cannot be carried out without express consent from the Ministry of Industry and Fisheries. The decision cannot be appealed, but can be brought before the court in the usual way. If the owners do not comply with the decision, they may be prosecuted, and the ministry may decide to take over ownership of the property. The property is located in Sør-Spitsbergen National Park, and Industry Minister Cecilie Myrseth believes it is worthless. The property’s lack of value has previously been pointed out by several people, and it is not permitted to search for minerals or engage in mining in the area, or to build anything on the property. The summary is made by an AI service from OpenAi. The content is quality assured by news’s journalists before publication. The government applies the emergency brake to prevent the sale of the property Søre Fagerfjord in Svalbard to unwanted actors. This is due to concerns about adverse effects on national security interests, confirms Minister of Industry and Fisheries Cecilie Myrseth (Ap) to news. – It is important for the government that we are now able to preserve calm and stability around this area, and not least that we ensure that national security interests are not threatened, she says to news, when we meet her in Tromsø. STOP: The government has adopted the Security Act. Industry and Fisheries Minister Cecilie Myrseth (Ap) confirms this to news. Photo: Erik Waagbø / news In recent months, the company AS Kulspids, where a former Russian citizen is completely central, has tried to sell the last privately owned property on Svalbard. Despite repeated warnings, including government attorney Frode Sejersted’s order to stop the sale, the company has continued the sale. The government’s decision is made in accordance with § 2-5 of the Security Act, which is in many ways a safety valve in the legislation. – I wish we didn’t have to make such a decision, but we have seen ourselves absolutely forced to do so, says the Minister of Business. The property’s location on Svalbard. The decision means that all possible attempts at negotiations and purchases, both related to the property and the company, cannot be carried out without the express consent of the Ministry of Industry and Fisheries. As the decision is made by the King in Council, it cannot be appealed. The decision can be brought before the court in the usual way. The decision: The decision entails: Negotiations on or implementation of the acquisition of the property Søre Fagerfjord in Svalbard cannot be undertaken without the express consent of the Ministry of Trade and Fisheries. There is no negotiation or acquisition of shares that will directly or indirectly give the buyer a total direct or indirect share of at least 10 percent of the share capital, share or votes in the company AS Kulspids. This also applies when this means that the buyer obtains significant influence over the management of the company in another way, or that the buyer obtains this together with his close relatives. The company AS Kulspids is required to continuously inform the ministry of all bids received for the property and direct or indirect holdings in the company. The same applies to actors who represent the owners in the sales process. Acquisitions in violation of points 1 and 2 cannot be carried out according to their content. Relevant data controllers (including the Mapping Authority and Brønnøysund registers) have been instructed by the Minister of Business and Industry that any such transfer must be refused registration. Security assessment In preparing the decision, the ministry has obtained statements from the Intelligence Service (E-service), the Police Security Service (PST) and the National Security Agency (NSM). These support that there is a “not inconsiderable risk that national security interests are threatened”, when selling to stakeholders from countries with which Norway does not have security political cooperation. – This decision is in many ways a precautionary decision, to ensure that you have both peace, stability and control in Svalbard around this property, says Myrseth. Despite the notice from the government attorney that the sale process must be stopped, the company still advertises the ad on its website. Facsimile: Kulspids.com If the owners do not comply with the decision, the owners may, in accordance with § 11-4 of the Security Act, be prosecuted. The ministry can also make a decision on taking over ownership of the property. When asked whether criminal prosecution would be relevant, Myrseth replies: – I assume that you follow Norwegian law in Norway, but through such a decision it is also possible to prosecute if you do not. The decision means that it is neither possible to register, register or carry out a sale of the property and the company, should the owners try to do so. Timeline for the case AS Kulspids, which owns the property Søre Fagerfjord in Svalbard, entered into an agreement with the state. In the agreement there is a consent clause. This follows the property forever. The agreement states that the property cannot be sold without the consent of the ministry. The bond, which was entered into in 1919, was not registered until 1932. Advokatfirmaet Schjødt is putting forward, on behalf of AS Kulspids, a demand for the cancellation of the mortgage bond, which prevents the company from selling the property. The mortgage bond was deleted the same day. The Ministry of Industry and Fisheries demanded correction of the land register, as they believed the deletion was incorrect. The Mapping Authority made a decision on correction. The rectification decision states, according to a ruling from the Borgarting Court of Appeal: “It followed from the document that negotiations on the sale or other right of disposal of the fields, e.g. pledging, must not be initiated without the consent of the Ministry of Trade. When the lien was deleted, this was also deleted. The reason for that was that it was not specifically noted in the land register and was overlooked during the deletion. However, the land registration authority does not have the authority to delete this type of lien by its own initiative.” AS Kulspids appealed the Mapping Authority’s decision to the Borgarting Court of Appeal. The Borgarting Court of Appeal upheld the state’s finding that the consent clause is a lien that “must rest on the property forever”. Photo: Maria Kommandantvold / news The last private property on Svalbard, Søre Fagerfjord, is for sale. Business Minister Cecilie Myrseth tells news that the property on Svalbard cannot be sold. At the same time, she states that the ministry was in negotiations for the purchase of the property in spring 2019. Photo: Aurora Ytreberg Meløe / news The government attorney sends a letter to the company, in which he requests that the sale process be halted and that the advertisements be removed immediately. 5. This entails requirements for the state’s consent to negotiations and acquisitions etc. of shares in Aktieselskabet Kulspids and the property Søre Fagerfjord on Svalbard. Show more – Not good Since it became clear that Aktieselskabet Kulspids wanted to sell the property, there has been a great deal of disagreement between the owners of the property and the ministry. Lawyer Per Kyllingstad, who is assisting the company in the sale of the 60.9 square kilometer property, has always believed that the sale is legal. He himself has believed that it would “contrary to fundamental law” if the shareholders of a company cannot dispose of the shares when they are “not encumbered”. – There is no doubt that the current owners are free to sell the shares in the company – and to the buyer or buyers they wish to sell to, Kyllingstad wrote in a letter to government attorney Sejersted in May. SELLER: Attorney Per Kyllingstad assists the owners of the property in the sale. Photo: Terje Bendiksby / NTB Myrseth reacts to the fact that the company has not stopped marketing the property. – I don’t think that’s right. That is the reason why we now have to take this step and make a decision according to the Security Act, in order to secure what is stated in the lien, which the owners have expressed that they do not respect. In the bond from 1932, it appears that the ministry must at all times be kept “informed about the position as well as with regard to securing and operating the fields as well as the company’s financial position”. Kyllingstad himself has believed that there are no restrictions on the sale of the shares. Furthermore, he has claimed that this has been done for “more than 100 years”, and that the ministry is aware of this. news has requested documentation on this, but has not received it. 1932: The bond, which was entered into in 1919, was not registered until 1932. Property without value This is not the first time the company has tried to sell the property. In November 2018, the company’s chairman submitted an application to divide the property into six parts. This then the seller, based on “feedback from potential buyers”, considered this appropriate to offer the property to several buyers. This is according to an e-mail Kyllingstad sent to the Governor earlier in the year, which news has been given access to. On the inspection, the company should “bring potential buyers of all or part of the property with them”, according to the communication news has been given access to. Both applications ended in rejection. VALUE?: Aktieselskabet Kulspids is trying to sell the property for 300 million, around NOK 3.5 billion. The ministry itself believes that the property is “without any kind of value”. Photo: Kulspids Industry Minister Cecilie Myrseth herself believes that the property, which the state has previously tried to buy for 20 million, has no commercial value. – This is a property without any kind of use value. It is located in a national park, which means that you cannot use the property, she says. The property is located in Sør-Spitsbergen National Park. Vernet Eiendommen’s lack of value has previously been pointed out by several people. – I would probably be surprised if there is someone who pays 3.5 billion, said lawyer at Elden Advokatfirma, Arnt Angell, to news in May. In 2016, he assisted a family from Bergen with the sale of the property Austre Adventfjord in Svalbard. As the property is located in a national park, it is not permitted to search for minerals or engage in mining in the area. It is also not permitted to build anything on the property. This is completely contrary to the advertising of the property, where it is advertised as having “significant geopolitical, scientific and environmental significance”. – It is difficult to see that anyone can successfully challenge that protection, said Angell. Hello! Thank you for reading the matter! Do you have any tips for this case or similar cases? Feel free to send me an email! Published 01.07.2024, at 06.00
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The government takes action on property on Svalbard – uses the security law – news Troms and Finnmark
