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Norwegian authorities seized a Russian vessel in the Arctic to enforce a USD 4.22 billion compensation obtained by the Ukrainian energy firm Naftogaz, following the expropriation of its assets after the annexation of Crimea in 2014, according to official sources.
The vessel Professor Molchanov was detained off the Arctic archipelago of Svalbard, as detailed by Covington, the American law firm representing Naftogaz.
The Governor of Svalbard's office confirmed in a statement that the ship was seized and will remain in the archipelago. "The Governor will take care of the crew and passengers on board in collaboration with Trust Arktikugol," it added.
Russia's Ambassador to Norway, Nikolai Korchunov, stated that Moscow will manage the vessel's release through legal channels. "We insist on the immediate release of the ship and on guaranteeing the safety of its passengers and crew," he noted.
The number of passengers and crew on board was not immediately specified. Arktikugol is the Russian company that manages Moscow's assets in the archipelago.
Svalbard, Norwegian territory since 1925, is located halfway between the North Pole and continental Europe. Its governance is regulated by a 1920 treaty that allows citizens of signatory states, including Russia, to settle there without a visa.
The vessel arrived on Tuesday, September 1, in Barentsburg, a Russian-administered coal mining settlement on Spitsbergen, the largest island in the archipelago, with a group of Russian scientists on board, according to a journalist accompanying the expedition.
Andrei Gorbunov, editor-in-chief of the Komsomolskaya Pravda (KP) broadcaster, stated that the ship docked without incident and the expedition members disembarked. News of the oceanographic vessel's seizure was only released on Wednesday evening, September 2.
"The detention has had no impact on the expedition participants or the vessel's crew. No one has been arrested. We all continue with our usual activities," Gorbunov wrote on the KP website.
"For now, the Professor Molchanov is simply prohibited from sailing from Barentsburg Port. It is unclear how long this restriction will last," he added.
Previously, Naftogaz obtained court orders to seize two properties of Trust Arktikugol in Svalbard, including a rental residence, although Russia filed legal appeals to halt the process.
Naftogaz has been pursuing legal action against Russia since 2016 to demand compensation for the expropriation of its assets in Crimea.
In April 2023, a Hague tribunal ordered Russia to pay Naftogaz USD 4.22 billion, plus interest and legal costs.
"Russia cannot evade its responsibility simply by refusing to comply with an international arbitration award," stated Sergii Fedorenko, acting CEO of Naftogaz.
Norway indicated that the dispute is exclusively between Naftogaz and Russia, and therefore does not involve the government in Oslo. "Russia can request the district court to re-evaluate the case," stated the Ministry of Justice.
Covington noted that it had been tracking the Professor Molchanov for months. Awaiting its arrival, Naftogaz's lawyers requested the court to detain and forcibly sell the vessel.
The petition was approved by the Nord-Troms and Senja District Court, which ordered the Governor of Svalbard to ensure the vessel remains immobilized.
Naftogaz indicated that it is coordinating enforcement actions in various jurisdictions, including the United States, France, the United Kingdom, and Finland, where Russian assets have been frozen. Russia, for its part, is appealing the measure, arguing that it did not receive prior notification.
"We will continue to pursue Russian assets worldwide until the compensation awarded to Naftogaz and other companies of the Naftogaz Group is paid," the Ukrainian company affirmed.
Barentsburg is one of two Russian settlements in Svalbard, along with Pyramiden. Together they account for 392 residents out of a total population of 2,914, according to statistics from Norway's statistics office.
The Svalbard Treaty restricts the military use of the archipelago, although the islands do not constitute a demilitarized zone. Russia has frequently accused Norway of militarizing the territory, a claim Oslo denies.
