Norway has seized a Russian ship in the Arctic to enforce a $4,22 billion damages claim that Ukrainian energy company Naftogaz received over Moscow seizing its assets after Russia's annexation of Crimea in 2014, officials said late Wednesday.
The ship "Professor Molchanov" was seized near the Norwegian Arctic archipelago of Svalbard, announced the American law firm Covington, which represents Naftogaz.
The office of the Governor of Svalbard confirmed that the ship had been seized and would remain in Svalbard, adding: "The Governor, in cooperation with the Arktikugol Trust, will take care of the crew and passengers on board."
Russia will demand the release of the seized ship and has sent a protest to the Norwegian ambassador, who has been summoned for talks on this occasion, the Russian Foreign Ministry announced, RIA reports.
Russian Ambassador to Norway Nikolai Korchunov announced that Moscow would seek legal action to secure the ship's release.
"We insist on the immediate release of the ship and guaranteeing the safety of its passengers and crew," Korchunov said.
Russian ship remains in Svalbard
It was not immediately clear how many passengers and crew members were on board. Arktikugol ("Arctic Coal") is a Russian company that manages Moscow's assets on the archipelago.
Svalbard, which has been a Norwegian territory since 1925, is located halfway between the North Pole and the European mainland and is governed under a 1920 treaty, which also allows citizens of signatory countries, including Russia, to settle there without a visa.
The ship arrived on Tuesday in Barentsburg, a Russian-run mining settlement on Spitsbergen, the archipelago's largest island, with a group of Russian scientists, a journalist who accompanied them said.
Andrei Gorbunov, editor-in-chief of Radio Komsomolskaya Pravda (KP), said the ship docked without incident and the expedition members disembarked. News of the ship's seizure only emerged on Wednesday evening.
"This seizure did not affect the expedition participants or the ship's crew in any way. No one was arrested. We are all continuing with our duties as usual," Gorbunov wrote on the KP website.
"For now, 'Professor Molchanov' is simply prohibited from leaving the port of Barentszburg. It is completely unclear how long this ban will last."
Naftogaz previously obtained court orders to seize two properties of the Arktikugol Trust in Svalbard, including a guesthouse for rent, but Russia has legally challenged those decisions.
Since 2016, Naftogaz has been trying to collect compensation from Russia for the expropriation of its assets in Crimea.
Hague court orders seizure of Russian assets
The arbitration court in The Hague ordered Russia in April 2023 to pay Naftogaz $4,22 billion, plus interest and court costs.
"Russia cannot avoid responsibility by simply refusing to comply with an international arbitration decision," said Naftogaz Acting CEO Sergiy Fedorenko.
Norway said that this was a dispute between Naftogaz and Russia and that the government in Oslo was not a party to the proceedings.
"Russia may ask the district court to reconsider the case," the Justice Ministry said.
Covington said they had been monitoring the movements of the "Professor Molchanov," which is used for commercial cruises, for months.
Anticipating his arrival, Naftogaz lawyers filed a court application for the seizure and forced sale of the ship.
The request was approved on Monday by the Nord-Troms and Senja District Court, which ordered the Governor of Svalbard to ensure that the ship is not moved.
Naftogaz said it was coordinating the implementation of the decision in multiple jurisdictions, including the United States, France, the United Kingdom and Finland, where Russian assets were frozen. Russia has appealed, claiming it was not informed.
"We will continue to search for Russian assets around the world until the compensation awarded to Naftogaz and other companies from the Naftogaz group is paid," the Ukrainian company said.
Barentsburg is one of two Russian settlements on Svalbard, along with Piramiden. Together, they have 392 inhabitants, out of a total population of 2.914 on the archipelago, according to Statistics Norway.
The Svalbard Treaty limits military use of the archipelago, but the islands are not a demilitarized zone. Russia has repeatedly accused Norway of militarizing the islands, a charge Oslo denies.
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