At the time, Greek shipowner Victor Restis, SwissMarine's second largest shareholder, was in jail awaiting trial for fraud, money laundering and embezzlement. But he remained a SwissMarine director.

SwissMarine's board approved bank account forms and an application to join NASDAQ OMX Commodities Clearing House in Stockholm which deleted Mr Restis from both the list of directors, and from the list of major shareholders, while explicitly denying that any director was under investigation for fraud or money laundering.

In a statement to the Financial Review on Saturday, SwissMarine said this was the result of an "inadvertent error", and that the company kept banks and counter parties fully informed "as required or as applicable".

Copies of the bank applications are contained in the files of Bermuda-based law firm Appleby, obtained by German newspaper Süddeutsche Zeitung and the International Consortium of Investigative Journalists.

Leaked documents show that Glencore secretly funds and helps operate a "ghost fleet" of 167 bulk cargo ships through SwissMarine Corporation.

The documents reveal Glencore's hidden links to the sanctions scandal, which unfolded as Western intelligence agencies worked in 2012 and 2013 to identify companies trading with Iran.

The documents show that Glencore secretly funds and helps operate a "ghost fleet" of 167 bulk cargo ships through SwissMarine Corporation.

Glencore owns 47.1 per cent of SwissMarine's voting stock but says that its three directors do not control the company, because Mr Restis, who has sold down to 23 per cent, also appoints three of SwissMarine's nine directors.


None of this would surface in 2012 when Glencore and Xstrata announced merger plans.

SwissMarine – Owns 11 capesize ships jointly with Glencore Plc – Charters 156 ships Source: ICIJ | Research: Neil Chenoweth | Data Editor: Edmund Tadros | Interactive: Les Hewitt Australian clients SwissMarine ships are regulars in Australian ports Glencore BHP Rio Tinto Coal ship Champel Hamilton arriving at Newcastle Port, 2013 Appleby File notes – April 23, 2003 The mystery owners Glencore owns 47.1% of voting shares through its company Sidhalu SA In 2013 Greek ship tycoon Victor Restis owned 24.1% of voting shares through his company Worldwide Shiptrade Management Inc Extract from Jan 2009: Appleby email May 13, 2013 US group United Against Nuclear Iran (UANI) claims Victor Restis is linked to Iranian scheme to buy supertankers to smuggle oil to China. Restis denies all claims. May 23, 2013 UN Panel of Experts reports that a Glencore deal to swap alumina shipments to Iran for aluminum which was allegedly used in Iran’s program to build a nuclear could have skirted international sanctions on Iran. Jul 19, 2013 Victor Restis sues UNAI for libel Jul 23, 2013 Victor Restis arrested in Athens and charged with bank fraud, embezzlement and money laundering. Jul 26 2013 Restis, still a director of SwissMarine, held in prison awaiting trial. Dec 3, 2013 Restis released on bail. Charges dismissed October 2016. Victor Restis escorted from court by plainclothes police, Athens - Jul 23, 2013. What SwissMarine told Standard Chartered Bank in June 2013 DNB Bank Caymans – SwissMarine deletes Restis from list of directors. Deletes Restis from list of major shareholders. Application form – NASDAQ OMX Clearing House Stockholm What SwissMarine said in October 2013 while Restis was in prison on bail SMC did reply “NO” to the question 1.A as to whether any Relevant Person had been the subject of any investigations for theft, embezzlement, fraud, misfeasance, malpractice or other similar misconduct, or any other serious offence. The answer ‘NO’ to question 1.A was given in error and inadvertently. Question 1.A is comprised of two separate questions; the answer to the first question was ‘NO’ — whilst the answer to the second question should have stated ‘YES” — but that was overlooked. The Nasdaq application: SwissMarine discussed and kept all bank and financial institutions and counterparties (as required or as applicable) fully informed and updated. For commercial reasons, Glencore’s investment in SwissMarine Corporation Ltd. (“SMC”) was not widely disclosed. Where required, Glencore has disclosed its beneficial ownership in SMC, such as to banks or tax authorities. Mr Restis not listed in item 4.3 The DNB Bank application: It is incorrect to state that Mr Restis was not listed as a director of SMC. Mr Restis was listed as a director of SMC on page 18 of the DNB Corporate Account Forms pdf, “Company Profile”, section, item 4.3. Glencore: Source: ICIJ | Research: Neil Chenoweth Data Editor: Edmund Tadros | Graphic: Les Hewitt Glencore owns 47.1% of voting shares through its company Sidhalu SA Application form - NASDAQ OMX Clearing House Stockholm SMC did reply “NO” to the question 1.A as to whether any Relevant Person had been the subject of any investigations for theft, embezzlement, fraud, misfeasance, malpractice or other similar misconduct, or any other serious offence. The answer ‘NO’ to question 1.A was given in error and inadvertently. Question 1.A is comprised of two separate questions; the answer to the first question was ‘NO’ — whilst the answer to the second question should have stated ‘YES” — but that was overlooked. Australian Financial Review Interactive infographic Interactive infographic by Les Hewitt

Australian government approval was a shoo-in, with the government desperate to keep miners onside while it introduced the Mining Tax.

Shadow treasurer Joe Hockey taunted the government, repeatedly citing Glencore CEO Ivan Glasenberg's comparison of Australia to the Congo: "At least in the Congo they need you. They want you there. And if they start changing the rules on you, you may not continue investing."

Today SwissMarine owns 11 Capesize vessels – the huge ships that carry coal and iron ore – and charters another 156 ships.

SwissMarine ships are regular visitors to Australian ports, carrying coal, iron ore and grain for BHP, Rio Tinto and Glencore

One of the world’s largest conglomerates, Glencore, has operations spread around the world. But the map on its website has one notable omission… The firm’s Bermuda operations are not listed. Click to unlock “The Glencore Room” in Bermuda Glencore’s commodity operations Source: ICIJ, Bloomberg, Glencore, Appleby | Data Editor: Edmund Tadros | Interactive: Les Hewitt The firm’s Bermuda office is not officially listed We do not intend to suggest or imply these companies, transactions and scenarios have avoided taxes or acted improperly The Glencore Room Source: ICIJ, Bloomberg, Glencore, Appleby, Xxxxxxxxx xxxxx: Neil Chenoweth | Data Editor: Edmund Tadros | Interactive: Les Hewitt NEW CALEDONIA In 2007, Glencore’s subsidiary in Bermuda helped finance a major nickel project in New Caledonia. INTERNTIONAL EXAMPLES CHAD In 2014, Glencore bought oil and gas assets in Chad. In a PowerPoint presentation prepared by Glencore, the company proposed using three Bermuda subsidiaries to move tens of millions of dollars in inter-company loans. Bermudan companies would also play a role in a proposed “tax bump,” according to the PowerPoint. AUSTRALIA In 2013, a Glencore Bermuda subsidiary signed loans worth tens of millions of dollars with a related company in Australia in currency swap deals. Until recently, there has been a dedicated “Glencore Room” in the offices of offshore law firm Appleby in Bermuda. At one stage the unmanned office was core to Glencore’s global operations. PERU One Glencore subsidiary in Bermuda held shares in a Peruvian company, Los Quenuales S.A., which has received $US1.17 million in environmental fines since 2008, according to Peruvian news outlet Convoca. RUSSIA Between 2003 and 2007, Glencore’s subsidiary in Bermuda loaned another Glencore subsidiary in Cyprus more than $US2.5 billion to finance the company’s operations in Russia. Law firm Appleby allegedly helped Glencore cloak its dealings in secrecy. Glencore is Appleby’s third largest client group, with 107 companies incorporated or administered by Appleby. JAMAICA In 2005, one of Glencore’s subsidiaries in Bermuda wrote a letter to Jamaica’s tax commissioner, objecting to the country’s demands the company pay taxes on share transfers in an alumina plant. ITALY In 2006, a Glencore subsidiary in Bermuda bought almost half of Eurallumina SpA, an Italian aluminium company. Glencore’s office operations ARGENTINA One Glencore subsidiary in Bermuda controlled half of Minera Alumbrera Limited, a gold and copper mining company in Argentina that temporarily stopped work this year after pollution complaints. CANADA In 2013, a Glencore Bermuda subsidiary that financed Glencore’s grain business lent $US2.2 billion to a related Canadian company. The firm is the world’s largest commodities trader Leading supplier of zinc and cobalt Leading trader of wheat Biggest merchant of pulses, such as chickpeas $US173.8b in revenue worldwide 16th on Fortune Global 500 list of large companies Sudbury Nickel Operations Canada Glencore is a Swiss-based commodity trading and mining company 155,000 employees and contractors worldwide Top 10 countries that Appleby clients are connected to Appleby describes itself as one of the world’s leading offshore law firms. A member of the offshore “magic circle”. 67 Number of countries About the investigation 13.4m Total number of documents *Includes residential addresses, business addresses, nationality, birthplace and passport Banking & asset finance Corporate finance Derivatives Funds & investment services Fund governance Insurance & reinsurance Intellectual property Islamic finance Mergers & acquisitions Real estate finance Regulatory Structured finance Appleby 6.8 million Corporate services include: Asiaciti Trust 566,000 382 Number of journalists 19 secrecy jurisdictions 6.0 million 1.4TB Size of the leak 96 Number of media partners Email extracts Glencore allegedly asked Appleby staff to backdate documents. Lawyers at Appleby were concerned about being asked to backdate documents for Glencore. SwissMarine operates 167 bulk cargo ships - 11 Capesize vessels and charters another 156 ships. “Those discussions about cargoes that may move or be sold put SwissMarine in a unique place in terms of information, giving it a slight edge over its rivals. If something is going to move, we will know before anybody else.” SwissMarine chief executive Peter Weernink in 2013 interview Shipping firms know the plans of mines they service, useful information for Glencore, a commodities trading company. Appleby allegedly helped Glencore disguise its part-ownership of a shipping company. Glencore secretly owns 47% of the voting stock of Bermuda shipping company, SwissMarine Corporation. Why it is useful to own a shipping firm Tax bump From Merope Holdings, Overview holding structure, Nov 10, 2014 Switch to Bermuda Integration planning Tax rationale From Glencore’s “Project Ranger, Proposed structure, May 13, 2014” Glencore integration planning – pwc.com.au, Jan 30, 2013 Corporate structures Source: ICIJ, Glencore, Appleby Data Editor: Edmund Tadros | Graphic: Les Hewitt CANADA In 2013, a Glencore Bermuda subsidiary that financed Glencore’s grain business lent $US2.2 billion to a related Canadian company. AUSTRALIA In 2013, a Glencore Bermuda subsidiary signed loans worth tens of millions of dollars with a related company in Australia in currency swap deals. CHAD In 2014, Glencore bought oil and gas assets in Chad. In a PowerPoint presentation prepared by Glencore, the company proposed using three Bermuda subsidiaries to move tens of millions of dollars in inter-company loans. Bermudan companies would also play a role in a proposed “tax bump,” according to the PowerPoint. RUSSIA Between 2003 and 2007, Glencore’s subsidiary in Bermuda loaned another Glencore subsidiary in Cyprus more than $US2.5 billion to finance the company’s operations in Russia. Australian Financial Review Interactive infographic Interactive infographic by Les Hewitt

Glencore has its own subsidiary, ST Shipping, that operates ships under a tax-free deal with Singapore. So why would a commodities trader need or want a secret holding in another shipping fleet?


In its early days Glencore, then known as Marc Rich & Co AG, had a colourful reputation, notably for buying oil from Iran during the 1979 Teheran hostage crisis.

"Marc Rich knew how to deliver," Rich biographer Craig Copetas told German broadcaster WDR. "He knew how to do that on time and in massive amounts. You want oil in South Africa during an oil embargo – you call Marc Rich. He gets it there.

"You know how hard it is to get tankers of oil in and out of a sanctioned country? Marc Rich knew how to do it. It is all in the traffic."

By traffic, Copetas means shipping.

In February 2001, Glencore had just begun paying kickbacks to the Iraqi government for oil shipments in a breach of the UN's Oil For Food program, the 2005 Volcker report concluded (Glencore denied any knowledge that its agents paid up to $US25 million in kickbacks).

It was also that month, on February 2 and February 28 in 2001, that two Iraqi oil shipments bound for the US were diverted to Singapore and Croatia, where Glencore stood to make up to $7 million in extra profit (Glencore denied any intention to breach UN Oil For Food rules).

Between these two diverted shipments, on February 20 2001, Bermuda law firm Conyers Dill & Pearman lodged an application to register SwissMarine. Glencore declined to say why it decided to launch a shipping venture at that time.

Glencore and Restis Group, one of the 10 biggest ship-owning businesses in Greece, teamed with four former Cargill commodities traders in the new company.


Glencore and Restis each had 43 per cent of the voting A stock. Employees received B and C shares which were cash settled. This was not permanent equity – when employees resigned, their shares were paid out in cash.

By 2004 SwissMarine was grossing $US1 billion a year in freight revenue.

The Volcker report detailed the strict instructions Glencore gave to its bankers never to divulge its connection with Iraq oil sales. Glencore imposed similar levels of secrecy on its new shipping company.

Glencore held its stake in SwissMarine through a Swiss company, Sidhalu SA. Appleby Bermuda provided three SwissMarine directors to represent Sidhalu.

"We are providing these directors at the request of Glencore International AG but this is very confidential information," Appleby's April 2003 file note said. "Accordingly, do NOT associate Glencore with SwissMarine under any circumstances."

In 2004 one Appleby employee wrote that a colleague "mentioned an element of confidentiality attaching to this structure – I can't remember exactly what it is, but I know it's there ... We obviously need make sure that nothing improper is said to the wrong people."

Glencore told the Financial Review, "For commercial reasons, Glencore's investment in SwissMarine Corporation Ltd ('SMC') was not widely disclosed. Where required, Glencore has disclosed its beneficial ownership in SMC, such as to banks or tax authorities."

In November 2012, the shipping market buzzed with gossip that Dimitris Cambis, a Greek professor with no previous shipping experience, had just bought eight ageing supertankers through a web of front companies for $US204 million.


On February 27 2013 Reuters journalist Jonathan Saul reported in London that "officials involved with sanctions" had shown him shipping documents which showed that Cambis' tankers were being used to ship Iranian oil to China to beat US sanctions.

Western intelligence

Cambis denied any involvement with Iran.

Two days later in New York another Reuters reporter, Louis Charbonneau, broke another story: "Glencore bartered with firm linked to Iran nuclear program."

He said he had been shown a report by a Western intelligence agency which revealed that since 2011 Glencore had a barter deal with Iran Aluminium Company (Iralco) to exchange thousands of tonnes of alumina in exchange for processed aluminium.

The report said that from mid-2012 Iralco had been supplying aluminium to Iran Centrifuge Technology Co (TESA), which was on the UN sanctions list and had been making uranium enrichment gas centrifuges for the nuclear program.

Glencore told Charbonneau the trade was legal and it had no knowledge of the link to Iralco until the EU banned alumina sales in December 2012, when it "ceased transactions".

On March 13 2013 the US Treasury blacklisted Cambris, 14 of his companies and his eight tankers, for helping Iran avoid oil sanctions.


At this point the Iran sanctions story had two unrelated arms: the aluminum deals by Glencore; and Cambris and his tankers. In both cases the information appeared to be based on Western intelligence sources.

Then on May 13 the stakes increased again. A US lobby group, United Against Nuclear Iran (UANI), claimed it had been given documents that showed that Victor Restis, his shipping firm EST, and the failing Greek bank he controlled, FB Bank, had been part of the Iranian tanker scheme—which Restis vehemently denied.

Later in court UANI would be more specific, claiming that "by at least mid-2010, Restis was conspiring with Cambris to devise a web of business entities and relationships to buy crude oil from Iran and sell it to Chinese buyers".

The UANI court documents gave a detailed account of Restis' involvement in the scheme and claimed that "Restis viewed himself as the strategic partner in the business plans because he had the knowledge and resources to provide and manage a fleet of tankers".

Glencore was in a difficult position. The merger with Xstrata had gone through on May 2 and the new group needed some good press.

On May 23 Charbonneau had another exclusive, reporting that a confidential UN Panel of Experts report had concluded the aluminum swap deals by Glencore and Trafigura could have been a way to get around international sanctions against Teheran over its nuclear program.

Glencore denies any wrongdoing and points to a UN Security Council statement in June 210413 months later, that "there are no sanctions that prohibit barter or swaps in aluminium or other materials".

But that was 13 months later. In mid-2013 Glencore was under pressure.


On July 19 2013 Restis sued UANI for $2 billion in defamation damages, claiming its documents were forgeries. Four days later Restis himself was arrested by Greek police and charged with bank fraud, embezzlement and money laundering.

The charges related €15 million in loans Restis had from FB Bank, part of €500 million in suspect loans to major shareholders of the bank, which previously Restis controlled.

Restis was released but when he returned to court on July 26 the magistrate remanded him in custody to face the charges.

Restis' lawyers said the Iran sanctions claims had been devastating to Restis' business, leading to the cancellation of a billion-dollar IPO on Nasdaq, while Restis' shipping company, Enterprises Shipping and Trading SA, had been put on a blacklist of companies said to trade with Iran – triggering difficulties with banks refusing to process its funds.

This was the prospect that Glencore faced: the two sides of the Iran sanctions story, the aluminum trading and the allegations about Restis and the oil tankers, had an obvious overlap – SwissMarine.

The secrecy that Glencore had attached to its shareholding, if it was revealed now in the context of the two Iran controversies, would look doubly bad for the newly formed Glencore Xstrata.

SwissMarine had just contracted to spend €300 million on six new ships, half of which was to be funded by Glencore. And now their partner was in prison, facing trial on fraud and money laundering charges.

At the minimum, the risk was that SwissMarine could be blacklisted, just as EST had been.


But this was only if the secret of the shareholdings became public knowledge.

In June 2013, before Restis' arrest, SwissMarine had filed a Know Your Customer form with Standard Chartered Bank which listed Restis owning 24.1 per cent of the company.

In October 2013 SwissMarine had to apply to join the Nasdaq OMX Commodities Clearing House in Stockholm, which was critical to the bunkerage and forward freight agreement contacts that SwissMarine used. It also had to set up a bank account.

Copies of SwissMarine's application to DNB Bank ASA Caymans branch and to Nasdaq were sent to Glencore's Appleby nominees on the SwissMarine board.

In the DNB form, Restis' name had been cut from the list of directors. SwissMarine listed Sidhalu SA as the only shareholder with more than 20 per cent and made no reference to Glencore or to Restis' holding.

SwissMarine's Nasdaq application included Restis in the list of directors but listed only Glencore as the ultimate beneficial owner of more than 30 per cent, despite Restis' contractual right to three of the nine board seats.

As part of the entry SwissMarine gave details of "Relevant Persons", which meant "the Company, its board directors, senior management and anyone controlling 30 per cent or more of the shares or voting rights".

The form asked: "Has any Relevant Person ever been convicted in a court of law of any theft, embezzlement, fraud, misfeasance, malpractice or other similar misconduct, or any other serious criminal offence? Has any Relevant Person been the subject of any such proceedings or been investigated for the same?"


Victor Restis, still a SwissMarine director, was in prison in Greece at the time.

SwissMarine ticked the box "No".

SwissMarine executive Peter Weernink told the Financial Review that it was not necessary for SwissMarine to answer this question, and ticking the No box was an inadvertent error.

He said in July 2013 SwissMarine had discussed Mr Restis' arrest with the Oslo compliance team of Nasdaq NOS, before it was merged into Nasdaq OMX in Stockholm.

With the DNB form SwissMarine had changed the way it calculated share capital for Standard Chartered Bank four months before. It now included the cash-settled employee shares, which reduced Restis' stake to 18.15%, which meant it did not have to be declared..

Mr Weernink said the form was submitted to DNB in February 2014 and did list Restis as a director.

However the copy of the form obtained by the Financial Review, which a senior Glencore executive sent to Appleby with instructions for directors to approve it, lists only five directors, and does not include Restis.

The link between Glencore and Restis was never made public.


The Appleby directors did not appear to be aware that Mr Restis was in prison.

In the same period one Appleby director asked Glencore if they could be given more information when they approved decisions. Glencore refused and said that it would prefer if they acted as they always had.

Restis was released on bail on December 3 2013. He repaid the €15.8 million loans and three years later the charges against Restis, his mother Bella and 15 others were all dismissed by the Greek Supreme Court.

The UANI defamation case was dismissed in March 2015 after the US Department of Justice intervened to claim that for UANI to disclose its sources and other details that Restis' lawyers were demanding would threaten US national interests. It fuelled the belief that the information on Restis' alleged email accounts had come from US intelligence or the Mossad.

"As to Mr Restis," Glencore told the Financial Review, "Mr Restis is one of a number of other shareholders in SwissMarine which is a non- controlled investment of Glencore. Glencore has no other commercial relationship with Mr Restis."

This isn't quite accurate. While Restis remains on the SwissMarine board, the Appleby documents show he is also chairman of SwissMarine Services SA, an independent company where Glencore is the largest shareholder, which has a commissionaire agreement with the shipping group.

When asked if Glencore directors were aware of any sanctions breaches by SwissMarine vessels trading with Iran, Glencore responded: "Glencore is unable to comment on this question without more detail or access to the underlying documents being reviewed by the ICIJ that form the basis of this question."