Norway arrests Russian vessel in Svalbard on Naftogaz’s claim

Norwegian authorities arrested the Russian vessel, Professor Molchanov, in Svalbard on Wednesday following an application by Ukrainian state energy company Naftogaz to enforce an arbitral award worth approximately $4.22 billion against Russia, according to Naftogaz.

The seizure was ordered by the Nord-Troms and Senja District Court on Aug. 31 to secure enforcement of Russia’s outstanding obligations under the award, which amounts to approximately $4.22 billion plus interest and costs.

The award concerns the expropriation of assets belonging to Naftogaz and other Naftogaz Group companies in Crimea, which Russia annexed in 2014, said the company.

Naftogaz said the award had previously been recognized as enforceable in Norway.

Professor Molchanov is owned by the Russian Federation and is used for commercial expedition cruises, including to Svalbard, according to the company.

“This is another important step towards restoring justice for Russia’s unlawful seizure of Naftogaz assets in Crimea. Russia cannot evade responsibility simply by refusing to comply with an international arbitral award,” said Naftogaz Acting CEO Sergii Fedorenko.

“We will continue to pursue Russian assets around the world until the compensation awarded to Naftogaz and other Naftogaz Group companies is paid,” he added.

Under the court order, the vessel may not leave its location, while the governor of Svalbard is required to take measures to prevent it from being moved.

The Norwegian Broadcasting Corporation, NRK, reported that the vessel was arrested in the port of Barentsburg following the court order.

Svalbard Gov. Lars Fause told NRK that authorities would assist those affected by the arrest and help crew members and passengers return to Russia.

The vessel arrived in Longyearbyen at 2 pm Tuesday (1200GMT), according to Norway’s vessel-tracking system.

Fause noted that authorities intended to handle the matter locally through cooperation, discussion and dialogue with authorities in Barentsburg, while questions concerning foreign policy would be referred to Oslo.

Naftogaz said passengers on board are being handled by Norwegian authorities.