Norwegian courts have ordered the seizure of a Russian vessel in the Arctic to enforce part of a $4.22 billion (approximately €3.6 billion) compensation claim secured by Ukrainian state energy firm Naftogaz. The claim stems from Moscow’s 2014 seizure of Naftogaz assets in Crimea, which Russia illegally annexed.
Officials confirmed that the ship, identified as the Professor Molchanov, was prevented from departing the port of Barentsburg in the Svalbard archipelago late Wednesday. Svalbard has been Norwegian territory since 1925 but operates as a demilitarized zone where citizens of treaty signatory countries, including Russia, may settle and work without visas under specific conditions.
The seizure was initiated by Covington, the US law firm representing Naftogaz in its efforts to collect the compensation awarded by the Permanent Court of Arbitration in The Hague in 2023. Following Russia’s refusal to pay the fine, legal fees, and interest amid its ongoing war with Ukraine, Naftogaz has pursued the seizure and forced sale of Russian commercial assets through local courts.
“Russia cannot evade responsibility simply by refusing to comply with an international arbitral award,” said Sergii Fedorenko, acting CEO of Naftogaz.
Covington stated it had been tracking the Professor Molchanov for months. The Nord-Troms and Senja District Court approved the application on Monday, ordering Svalbard’s governor to ensure the vessel remained docked upon its arrival. The Svalbard governor’s office subsequently confirmed the seizure, noting it would collaborate with Trust Arktikugol, the Russian enterprise administering the Barentsburg mining settlement, to care for the crew and passengers.
Norway’s Justice Ministry indicated that the issue did not directly concern the central government in Oslo, adding that Russia could demand a reassessment of the case by the district court.
In response, Russia’s ambassador to Norway, Nikolai Korchunov, announced on Thursday that Moscow would seek the ship’s release through legal channels. “We insist on the immediate release of the vessel and on ensuring the safety of its passengers and crew,” Korchunov said. The Kremlin also summoned the Norwegian ambassador in Moscow to lodge a formal complaint.
The Professor Molchanov, a repurposed research vessel, arrived in Barentsburg on Tuesday with a group of Russian scientists. Andrei Gorbunov, editor-in-chief of KP radio, reported that the seizure had not impacted the expedition participants or crew, stating that everyone was continuing their work as usual. He described the vessel as being forbidden from leaving the port, though the duration of this restriction remained unclear.
Svalbard, located well north of mainland Norway within the Arctic Circle, has a population of slightly fewer than 3,000 people. Historically a whaling base in the 17th and 18th centuries, it became a coal mining site in the early 20th century. The 1920 treaty established it as a demilitarized zone, leading the Soviet Union to develop three company towns: Barentsburg, Pyramiden, and Grumant. While Barentsburg currently hosts around 300 mostly Russian nationals, tourism has become a growing industry in the stark polar archipelago.
Impressive legal maneuver in such a remote, demilitarized zone. Norway is really standing firm here.
Does the ship’s release matter much against a $4.22 billion debt? Russia seems determined to ignore international rulings entirely.