Norway detains Russian cruise ship in Svalbard over Ukraine's $4.2 billion Crimea claim
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Norway detains Russian cruise ship in Svalbard over Ukraine's $4.2 billion Crimea claim

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Norwegian authorities seized the Russian-owned vessel Professor Molchanov in Svalbard after a court order supporting Ukraine's Naftogaz claim for compensation related to assets seized in Crimea.

Norwegian officials detained the Russian state-owned expedition cruise ship Professor Molchanov on Wednesday at Barentsburg, a settlement on the Svalbard archipelago. The action follows a court order from the Nord-Troms and Senja District Court that upheld a request by Ukraine’s state energy company Naftogaz, which is seeking to enforce a $4.2 billion arbitration award against Russia for assets expropriated after the 2014 annexation of Crimea.

Svalbard governor Lars Fause, whose office carried out the enforcement, said the vessel is prohibited from leaving the port and that passengers on board are being handled separately by Norwegian authorities. The Kremlin has not commented on the seizure.

The Hague-based Permanent Court of Arbitration ruled in 2023 that Russia must compensate Naftogaz and six affiliated firms for the unlawful takeover of gas fields, pipelines and the Black Sea producer Chornomornaftogaz. The principal amount of the award is about $4.22 billion, which could rise to roughly $5 billion with interest and costs. Russia has refused to pay.

"Russia cannot evade responsibility simply by refusing to comply with an international arbitral award," said Naftogaz acting CEO Sergii Fedorenko, describing the seizure as a step toward restoring justice. He added that the company will continue to pursue Russian assets worldwide until the debt is settled.

Naftogaz is represented in Norway by the law firm Wikborg Rein, together with international counsel Covington & Burling. The Svalbard operation is part of a broader effort, with enforcement actions underway in about ten jurisdictions and similar seizures already occurring in Finland and France. Barentsburg, a Russian coal-mining settlement, exists under the 1920 Svalbard Treaty, which affirms Norwegian sovereignty while granting signatory states, including Russia, equal rights to commercial activity on the islands. The Professor Molchanov operates commercial expedition cruises to Svalbard and other Arctic destinations.

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