Norway seizes Russian cruise ship in Svalbard over Naftogaz compensation claim

Barentsburg, Norway. Norwegian authorities have seized the Russian cruise ship Professor Molchanov on behalf of Ukrainian energy company Naftogaz, which is seeking to enforce a $4.22 billion compensation award linked to assets expropriated after Russia annexed Crimea in 2014.

The vessel was seized late on Wednesday in Barentsburg, a Russian-operated coal mining settlement on Norway’s Arctic archipelago of Svalbard.

Russian protest

Russia described the seizure as an act of piracy and said it had summoned Norway’s ambassador to deliver a strong protest. The Russian Foreign Ministry said it would work to secure the vessel’s release.

The ministry said that Norwegian restrictive measures against Russia on Svalbard violated international law and had effectively placed Russian organisations and citizens operating on the archipelago under blockade. It accused Norway of violating the 1920 treaty governing Svalbard.

Norwegian response

Norway said it would propose options for crew members, passengers and others who wished to return home.

“We are in a dialogue with the Barentsburg leadership and are ready to find ways to safely return people to Russia,” Svalbard Governor Lars Fause told broadcaster TV2.

Norway’s Justice Ministry said the dispute concerning the vessel was between Naftogaz and Russia and did not involve the Oslo government.

Naftogaz compensation case

Naftogaz has pursued compensation from Russia since 2016 for the expropriation of its property in Crimea.

An arbitration court in The Hague ordered Russia in April 2023 to pay Naftogaz $4.22 billion, plus interest and legal costs. Russia has said it does not recognise the court’s jurisdiction in the case and will not pay.