Norwegian authorities seized a Russian vessel in the archipelago of Svalbard in the Arctic on September 2nd as part of an action by the Ukrainian energy company Naftogaz to recover $4.22 billion in arbitration award funds.
According to the Governor’s Office of Svalbard, the vessel named “Professor Molchanov” was seized in Barentsburg based on a court order from the Nord-Troms and Senja District Court. The court ruled on August 31st to allow Naftogaz to apply for the vessel’s seizure.
The Governor’s Office stated that it is the local enforcement authority and executed the seizure on September 2nd per the court’s order. The court ordered the vessel to remain at the designated location in Barentsburg until further decision by the Governor or the court. The Governor’s Office will collaborate with the Russian state-owned company Trust Arktikugol, which manages Barentsburg, to handle matters related to the crew and passengers on board.
The “Professor Molchanov” is a Russian vessel used for commercial expeditions, with its route including the Svalbard archipelago.
Naftogaz is seeking compensation in accordance with an arbitration award related to Russia’s seizure of Naftogaz’s energy assets in Crimea. In April 2023, the Hague arbitration tribunal ruled that Russia must pay approximately $4.22 billion to Naftogaz and associated companies, in addition to interest and legal costs.
Naftogaz stated that Russia has not complied with the award, leading the company to apply for the seizure of Russian commercial assets in multiple countries. The company’s CEO, Sergii Fedorenko, mentioned that this is an important step to “restore justice” for Russia’s unlawful seizure of Naftogaz assets in Crimea. Naftogaz will continue to trace Russian assets worldwide to hold Russia accountable for refusing to comply with international arbitration awards.
According to the Associated Press, Russian President Putin referred to the seizure of civilian vessels and attacks on commercial ships as “state terrorism” during his speech at the Eastern Economic Forum in Vladivostok on September 3rd. He also criticized Ukrainian President Zelensky’s recent warning to foreign airlines. Zelensky’s statement highlighted that flying within Russia may no longer be safe due to Ukraine’s long-range drone attacks.
The Norwegian Ministry of Justice clarified that the incident is a legal matter between Naftogaz and Russia, not a political action involving the Norwegian government. Russia, as a party to the case, has the right to request a regional court to review the case again.