Norway seized the Russian-owned Professor Molchanov vessel off Svalbard to enforce a $4.2 billion compensation award issued in favor of Naftogaz.
The vessel, used for commercial cruise voyages, encountered action by Norwegian authorities as it approached Svalbard en route to Barentsburg, a Russian-owned mining settlement. Professor Molchanov was detained after a 24-hour wait with the Norwegian Coast Guard.
Seizures after Crimea underpin the award
Ukrainian energy company Naftogaz has been pursuing legal proceedings against Russia since 2016 over the seizure of its assets following the annexation of Crimea in 2014.
An arbitral tribunal in The Hague ruled in April 2023 that Russia must pay Naftogaz $4.2 billion. The award also included interest and legal costs.
Naftogaz’s acting Chief Executive Sergii Fedorenko said Russia could not evade responsibility by refusing to comply with the international arbitration ruling.
Norwegian court approves forced sale
The Covington law firm, acting on behalf of Naftogaz, said it had tracked Professor Molchanov for months. After the vessel approached Svalbard, the company’s lawyers applied to a Norwegian court.
Nord-Troms and Senja District Court on Monday approved the request to detain the vessel and subject it to a forced sale. The ruling ordered the Governor of Svalbard to enforce the decision, keep the vessel under supervision and prevent it from being moved.
The Governor of Svalbard confirmed that Professor Molchanov had been detained and would be held in Svalbard.
Russia challenges the proceedings
Naftogaz said it had coordinated enforcement proceedings in various countries, including the United States, France, the United Kingdom and Finland, where Russian assets had been frozen.
Russia is appealing the action, arguing that it was not notified. A spokesperson for the Russian Foreign Ministry described the seizure of the vessel as “piracy.”
The Ukrainian company said it would continue tracking Russian-owned assets around the world until the compensation was paid.
