Vélfag Takes Emergency Measures

In light of the unprecedented and hostile actions taken by Arion Bank and the Ministry of Foreign Affairs, led by Þorgerður Katrín Gunnarsdóttir, against Vélfag, the shareholders of the company—together with its board and management—have decided to implement an immediate 30% reduction in staff as the first step in an emergency plan.

The termination of employment contracts marks the initial phase of this plan, which was adopted in response to the sanctions imposed by Arion Bank and the Icelandic Ministry of Foreign Affairs. The measures are intended to ensure the company’s survival until Þorgerður Katrín Gunnarsdóttir decides either on the formal expropriation of the majority shareholder or on the lifting of the sanctions.

“It is deeply alienating that a country aspiring to join the European Union has yet to grasp the definition of the rule of law and the core European values—such as property rights. This disregard now results in numerous families in Iceland losing their livelihoods. I doubt it was worth it, and I know it helps no one,”

stated the representative of the majority shareholder.