Russian tour operator accused of running unlicensed business in Greenland
A Russian tour operator has spent years sailing tourists around Ilulissat without a Greenlandic licence and without paying tax, according to reporting by Greenland’s public broadcaster KNR. The company’s boats, known for their distinctive red sails, work the Disko Bay area each summer and the mayor of Avannaata Kommunia wants the Self-Government to close the loophole that allows it.
The operator, which KNR identified as the firm Rusarc, makes millions of kroner showing Greenland’s landscape to Russian visitors while contributing little locally, said mayor Lars Erik Gabrielsen. A highly placed source told him one company turns over around 40 million kroner in just ten weeks, a figure KNR could not verify.
“What we’re seeing here is that we can see customers coming aboard the boats. They’re running a tourism business. These aren’t just guests, but tourists,” said Gabrielsen.
After Russia’s invasion of Ukraine, the boats stripped their logos and flags from their hulls, according to KNR. The vessels are typically registered in Malta, Palau or Malaysia and present themselves as private passenger boats. As things stand, the operators are not breaking any law, which is why Gabrielsen is calling for tighter rules.
“When you use our surroundings to promote yourself, make money and sell expensive trips, you have a duty as a tour operator to pay tax and contribute to the local community,” said Gabrielsen. “We’re talking about millions we’re missing out on.”
The arrangement may not survive the season. Under Greenland’s 2025 Tourism Act, operators already active when the law took effect can run without a licence until January 2027, after which a licence becomes mandatory, requiring a substantial connection to Greenland and at least two-thirds local ownership. That would bar Rusarc unless it secures one.
Ivik Knudsen-Ostermann, who owns Greenland Cruises, welcomed the change and said the same rules should apply to everyone. “It’s money that goes straight to them. Of course they put some money into the local community, but no tax is being paid,” he said.
Rusarc rejected the criticism. In a WhatsApp message to KNR, it said it holds all necessary permits, is not a Russian company but a foreign legal entity whose managers live abroad, and pays harbour dues, taxes and applicable fees. It declined to say what its turnover is, whether it holds a Greenlandic licence, or what taxes it pays. It acknowledged the business may be ending: “As the legislation changes next year, this may be our last season in Greenland,” it wrote.
KNR reported that Greenland’s Department of Business and Mineral Resources did not respond to a request for comment before publication.
