Norway seizes Russian vessel in Svalbard over Naftogaz arbitration award

Norwegian authorities have seized the Russian-owned expedition vessel «Professor Molchanov» in Svalbard following a request from Ukraine’s state energy company Naftogaz, which is seeking to enforce a multibillion-dollar arbitration award against Russia, Euronews reported.

The vessel was seized on Wednesday in the port of Barentsburg after the Nord-Troms and Senja District Court issued an order on Monday. It is not permitted to leave its current location.

The action is part of Naftogaz’s efforts to obtain compensation for assets in Crimea that the company says were expropriated following Russia’s annexation of the peninsula in 2014. Since then, Naftogaz has sought enforcement in several countries where Russian commercial assets are located, including Finland, which seized Russian assets in connection with the case earlier this year. The outstanding principal under the arbitration award is approximately $4.22 billion, excluding interest and costs, which could bring the total to around $5 billion.

Barentsburg is a Russian coal-mining settlement on Svalbard. Under the 1920 Svalbard Treaty, Norway has sovereignty over the archipelago, while citizens and companies from signatory states, including Russia, have certain rights to engage in economic activities there.