Investing In Piracy

Not getting enough return on your traditional Wall Street bond, stock, and options investments?

Somali sea gangs lure investors at pirate lair

In Somalia’s main pirate lair of Haradheere, the sea gangs have set up a cooperative to fund their hijackings offshore, a sort of stock exchange meets criminal syndicate.

Heavily armed pirates from the lawless Horn of Africa nation have terrorised shipping lanes in the Indian Ocean and strategic Gulf of Aden, which links Europe to Asia through the Red Sea.

The gangs have made tens of millions of dollars from ransoms and a deployment by foreign navies in the area has only appeared to drive the attackers to hunt further from shore.

It is a lucrative business that has drawn financiers from the Somali diaspora and other nations — and now the gangs in Haradheere have set up an exchange to manage their investments.

One wealthy former pirate named Mohammed took Reuters around the small facility and said it had proved to be an important way for the pirates to win support from the local community for their operations, despite the dangers involved.

“Four months ago, during the monsoon rains, we decided to set up this stock exchange. We started with 15 ‘maritime companies’ and now we are hosting 72. Ten of them have so far been successful at hijacking,” Mohammed said.

“The shares are open to all and everybody can take part, whether personally at sea or on land by providing cash, weapons or useful materials … we’ve made piracy a community activity.”

Haradheere, 400 km (250 miles) northeast of Mogadishu, used to be a small fishing village. Now it is a bustling town where luxury 4×4 cars owned by the pirates and those who bankroll them create honking traffic jams along its pot-holed, dusty streets.

. . .

“Piracy-related business has become the main profitable economic activity in our area and as locals we depend on their output,” said Mohamed Adam, the town’s deputy security officer.

“The district gets a percentage of every ransom from ships that have been released, and that goes on public infrastructure, including our hospital and our public schools.”

. . .

Haradheere’s “stock exchange” is open 24 hours a day and serves as a bustling focal point for the town. As well as investors, sobbing wives and mothers often turn up there seeking news of male relatives missing in action.

. . .

Piracy investor Sahra Ibrahim, a 22-year-old divorcee, was lined up with others waiting for her cut of a ransom pay-out after one of the gangs freed a Spanish tuna fishing vessel.

“I am waiting for my share after I contributed a rocket-propelled grenade for the operation,” she said, adding that she got the weapon from her ex-husband in alimony.

“I am really happy and lucky. I have made $75,000 in only 38 days since I joined the ‘company’.”

See also:
Bandit Bourse? Somali pirates hijack oil tanker, organize ‘stock market’
Pirate stock exchange helps fund hijackings
Somali pirates set up ‘stock exchange’
Avast ye! Somali pirates create exchange for stolen loot
Invest in Your Favorite Somali Pirate
Somali Pirate Haven Is the Ultimate Deregulated Free Market

Crime pays.

/until the civilived world finally gets good and tired of having its ships constantly hijacked and sends Mr Cruise Missile to pay Haradheere’s “stock exchange” a visit

Consensus Building

As the dust continues to settle, a more consistent narrative is taking shape and setting up.

Missing channel pirate ship carried Russian arms for Iran

A CARGO ship that vanished in the Channel was carrying arms to Iran and was being tracked by Mossad, the Israeli security service, according to sources in both Russia and Israel.

The Arctic Sea, officially carrying a cargo of timber worth £1.3m, disappeared en route from Finland to Algeria on July 24. It was recovered off west Africa on August 17 when eight alleged hijackers were arrested. The Kremlin has consistently denied that the vessel was carrying a secret cargo. It claims the ship was hijacked by criminals who demanded a £1m ransom.

The official version was challenged by sources in Tel Aviv and Moscow who claimed the ship had been loaded with S-300 missiles, Russia’s most advanced anti-aircraft weapon, while undergoing repairs in the Russian port of Kaliningrad.

Mossad, which closely monitors arms supplies to Iran, is said to have tipped off the Russian government that the shipment had been sold by former military officers linked to the underworld.

The Kremlin then ordered a naval rescue mission which involved destroyers and submarines. Any evidence that the Kremlin had let advanced weaponry fall into the hands of criminals or be sold to Iran would be highly embarrassing, so military officials believe a “cover story” was concocted.

“The official version is ridiculous and was given to allow the Kremlin to save face,” said a Russian military source. “I’ve spoken to people close to the investigation and they’ve pretty much confirmed Mossad’s involvement. It’s laughable to believe all this fuss was over a load of timber. I’m not alone in believing that it was carrying weapons to Iran.”

The alleged hijackers, four Estonians, two Russians and two Latvians, will go on trial in Moscow. According to the Kremlin’s account, they boarded the Arctic Sea in the Baltic by claiming their inflatable craft was in trouble and then took over the ship at gunpoint.

Sources in Moscow suggested Mossad may have played a part in the alleged hijacking by setting up a criminal gang, who were unlikely to have known anything about a secret cargo. “The best way for the Israelis to block the cargo from reaching Iran would have been to create a lot of noise around the ship,” said a former army officer.

“Once the news of the hijack broke, the game was up for the arms dealers. The Russians had to act. That’s why I don’t rule out Mossad being behind the hijacking. It stopped the shipment and gave the Kremlin a way out so that it can now claim it mounted a brilliant rescue mission.”

According to Israeli military sources, Israel received intelligence that weapons bound for Iran were being loaded in Kaliningrad, a port notorious for gun runners. “A decision was then taken to inform the Kremlin,” said the source.

Had the S-300 missiles been delivered, Iran would have significantly strengthened its air defences. An Israeli air force source said that in the event of an attack on Iranian nuclear installations, such missiles could increase Israeli casualties by 50%.

. . .

Sources who suspect Mossad’s involvement point to a visit to Moscow by Shimon Peres, the Israeli president, the day after the Arctic Sea was rescued. Peres held four hours of private talks with Dmitry Medvedev, the Russian president. Although the Israeli foreign ministry would not be drawn on the Arctic Sea, it confirmed that the two leaders had discussed the sale of Russian weapons to countries hostile to Israel. According to Israeli officials, Peres received verbal guarantees from the Russians that they would not sell advanced weapons systems to Iran or Syria.

“Clearly the Israelis played a role in the whole Arctic Sea saga,” said a Russian military source. “Peres used the incident as a bargaining chip over the issue of arms sales to Arab states, while Israel allowed the Kremlin a way out with its claims to have successfully foiled a piracy incident.”

See also:
Arctic Sea ghost ship ‘was carrying weapons to Iran’
Was Russia’s ‘Hijacked’ Ship Carrying Missiles to the Mideast?
‘Times’: Mossad staged Russian ship hijacking
Ship hijack mystery deepens despite arrests
Russian Military Says to Check Arctic Sea Cargo
Best Explanation Yet, But Is It The Truth?

Okay, so the Mossad gets wind of a plot by Russian mobsters to illegally smuggle and sell sophisticated S-300 anti-aircraft missiles to Iran. Israel tips off the Russian government, but there’s a problem. If word of this illegal arms sale gets out, the Russian government will be highly embarrassed and lose face. So, a cover story unfolds whereby the Mossad arranges for a “hijacking” of the Arctic Sea which throws a monkey wrench in the mobsters’ plan and allows the Russian Navy time to swoop in and “rescue” the ship. It’s a win win for both Israel and Russia. The Israelis help stop the sale of advanced missiles to Iran, which would drastically complicate any future Israeli airstrikes against Iran and, instead of of looking like incompetent dumbasses, unable to keep track of the inventory of their most sophisticated weapons, the Russians come off looking like heroes, having recovered their ship and crew (and the missiles) from the “hijackers”. The Mossad dissapears and the Russians throw a thick security blanket over the whole episode and its aftermath, maintaining plausible deniability that there was ever any illegal attempt to smuggle and sell S-300 missiles in the first place.

/makes sense to me

New Day, New Story

Yesterday, there weren’t any hijackers, but today there are suddenly eight. Go figure.

Russia Detains Eight in Hijacking of Ship Arctic Sea (Update1)

Russia’s navy detained eight suspected hijackers of the Maltese-flagged freighter Arctic Sea after a 25-day odyssey that ended in the Cape Verde islands off west Africa, Defense Minister Anatoly Serdyukov said.

The eight hijackers are citizens of Estonia, Latvia and Russia, Serdyukov told President Dmitry Medvedev today in comments published on the Kremlin’s Web site. The armed group boarded the Arctic Sea on July 24, then forced the crew to change course toward Africa and to shut down the ship’s navigational equipment, he said. The freighter had been en route from Finland to Algeria.

Russia learned of the Arctic Sea’s location “several days ago” and kept that information secret to give its warship, the Ladny, time to navigate the Cape Verde archipelago and catch the hijackers by surprise, Rossiyskaya Gazeta, the government’s newspaper of record, reported. The North Atlantic Treaty Organization provided logistical support, the newspaper said.

The disappearance of the Arctic Sea, owned by Helsinki- based Oy Solchart Management AB, sparked international speculation about its fate, including a reported sighting at the Spanish port of San Sebastian, a possible second attack off Portugal and a Finnish police report of a ransom demand.

. . .

Defense Ministry spokesman Alexei Kuznetsov said by phone in Moscow today that he couldn’t confirm or deny the Rossiyskaya Gazeta report that NATO cooperated in the investigation. He said the crew was aboard the warship Ladny near Cape Verde and was being questioned. Carmen Romero, a spokeswoman for NATO in Brussels, couldn’t be reached for comment immediately.

The freighter was en route from Finland to Algeria with a cargo of timber valued at 1.3 million euros ($1.8 million). The seller was Rets Timber, a joint venture between Europe’s largest papermaker, Stora Enso Oyj, and UPM-Kymmene Oyj, Kari Naumanen, chief executive officer for Helsinki-based Rets, said by phone today. Most of the lumber came from other companies, he said.

Rets knows “nothing more than what’s public,” and wasn’t contacted by the hijackers, Naumanen said.

Finnish police didn’t contact Rets before going public with their investigation and haven’t shared internal information, he said. “They have not put one single question to us.”

The vessel will continue to Algeria to deliver its shipment, which is the property of three importers in Algeria, Naumanen said, declining to identify them. Rets has used Solchart for shipments to Algeria and Egypt for about 13 years, he said.

See also:
Russia says Arctic Sea was hijacked, suspects arrested
Eight Are Arrested Over Arctic Sea Hijacking
Russia Says It Holds Hijackers of Cargo Ship
Russia holds eight after recovering missing ship Arctic Sea
Crew of Arctic Sea under interrogation in hopes of yielding answers to mystery
Arctic Sea hijackers ‘threatened to kill crew, sink ship’
Hijackers of Ship Arctic Sea Demanded $1.5 Million From Insurer
Ship location kept quiet to protect hijacked crew
Doubts cast on Russia’s ‘rescue’ of Arctic Sea
Look Ma, No Hijackers

So, eight criminals hijack an 18 year old freighter laden with a cargo of $1.8 million worth of wood and demand $1.5 million in ransom? It hardly seems worth the effort, certainly no self-respecting Somali pirate would sink that low.

/sorry, I’m still not buying it, there’s got to be more to this story that’s not being made public yet

Where Oh Where Has The Arctic Sea Gone, Where Oh Where Can It Be?

What Happened to the Missing Ship ‘Arctic Sea’?

Russia’s president has ordered the Russian Navy to take part in the search for the cargo ship “Arctic Sea.” Manned by a Russian crew, the ship vanished two weeks ago off the coast of southern Europe.

President Dmitry Medvedev told Secretary of Defense Anatoly Serdyukov to “take all necessary measures to establish the whereabouts and to find the missing ship ‘Arctic Sea’ with a Russian crew on board, as well as to free [the ship’s crew], should such a need arise,” the Kremlin told Interfax on Wednesday.

The Arctic Sea is a 5,000-ton cargo ship that was carrying timber worth approximately $1.6 million from Finland to Algeria. It left port July 23, and the next morning was reportedly boarded in Swedish waters in the Baltic Sea by a band of masked hijackers in a high-speed rubber boat, who identified themselves as anti-drug police. The 15-man crew was tied up while the hijackers searched the ship.

After 12 hours, they apparently disembarked and sped away, breaking radio and other communications gear but without taking anything of value, the crew reported to the Maltese Maritime Authority, where the ship is registered. Instead of making port after the incident, the ship continued on its trip.

The ship was last heard from July 28, when it radioed the Dover, England, Coast Guard because it was approaching the English Channel. In a call the Coast Guard called routine, the ship said that it was en route to the Algerian port of Bejaia, where it was due to arrive Aug. 4. The last time its position was recorded by tracking equipment was July 30, when it was off the coast of the northern French town of Brest. On Aug. 2, the ship was spotted by Portuguese coastal patrol planes.

But the next day, Aug. 3, Interpol told the Dover Coast Guard that the ship had been hijacked more than a week before and asked the Coast Guard to stay vigilant. By that point, however, the ship had passed through the English Channel and had fallen off the radar.

See also:
Secret cargo theory as hunt for missing vessel Arctic Sea goes on
Hijacked Arctic Sea feared to be carrying secret cargo of drugs
Missing ship may have secret cargo
Russian Navy Joins Search for Freighter
Hunt Intensifies for Missing Cargo Ship
Ship disappears after sail through English Channel
Piracy fears surround Arctic Sea disappearance
Arctic Sea’s unstable sisters
MV Arctic Sea

Unless it sank, I find it hard to believe, in the age of satelites, that they can’t find a 300 ft. ship in the Atlantic. This whole episode is well within the realm of the bizzarre. The Russians cannot be happy about what’s happening. The resolution of this mystery should prove to be quite interesting, if we ever find out for sure.

/given the seemingly professional nature of the presumed piracy, I think we can safely say that whatever cargo the Arctic Sea was transporting, it sure as hell wasn’t timber