Norway seizes Russian ship in Arctic to enforce Ukrainian compensation award

Norwegian authorities have detained a Russian research and cruise vessel in the Arctic archipelago of Svalbard, acting on a request from Ukraine's state energy company Naftogaz. The ship, the Professor Molchanov, was held late Wednesday in the port of Barentsburg, a Russian-operated coal-mining settlement on the Norwegian territory.

The seizure is part of Naftogaz's long-running effort to enforce a $4.22 billion compensation award, plus interest and legal costs, granted by an arbitration court in The Hague in April 2023. The award stems from Russia's expropriation of Naftogaz assets in Crimea following the 2014 annexation.

Russia has condemned the arrest as an act of piracy and summoned Norway's ambassador to protest. The Russian Foreign Ministry accused Norway of violating the 1920 treaty that governs Svalbard, saying Russian citizens and organizations on the archipelago are effectively under blockade. Moscow has said it does not recognize the arbitration court's jurisdiction and has refused to pay.

Norway's justice ministry said the dispute over the vessel is a matter between Naftogaz and Russia, not involving the Oslo government. Svalbard Governor Lars Fause said authorities are in dialogue with Barentsburg leadership and are ready to help crew and passengers return to Russia safely if they wish.

The 71-metre vessel, built in Finland in 1982, can carry 32 crew and 52 passengers. It arrived in Barentsburg on Tuesday with a group of Russian scientists. Andrei Gorbunov, editor-in-chief of Komsomolskaya Pravda radio, who was accompanying the expedition, said no one had been arrested and the ship was simply forbidden from leaving port.

Naftogaz's legal team, led by U.S. firm Covington and Norwegian firm Wikborg Rein, had monitored the ship for months. Clovis Trevino, a Covington partner, said the vessel's value is only a small fraction of the roughly $6 billion now owed, including interest and costs, but called the seizure a "very meaningful win." She expects Russia to challenge the arrest in court, which would delay any auction of the vessel.

The arrest was ordered by a district court on Monday, requiring the Svalbard governor to ensure the ship does not move. Naftogaz says it will continue pursuing Russian assets in multiple jurisdictions, including the U.S., France, Britain, and Finland, until the compensation is paid. Russia is appealing, arguing it was given no notice of the proceedings.