Russia Demands ‘Immediate Release’ Of Vessel Seized By Norway Over Naftogaz’s $4.2 Billion Claim

Russia has demanded the immediate release of a vessel seized by Norway in the Arctic.

The seizure is linked to a $4.2 billion compensation claim by Ukraine’s state energy company Naftogaz over assets taken by Russia after its 2014 annexation of Crimea.

The Professor Molchanov was seized on Wednesday in Svalbard, a Norwegian Arctic archipelago, under a court order dated Aug. 31, the governor of Svalbard said.

Naftogaz is trying to enforce a $4.2 billion arbitration award against Russia. A Hague-based arbitration tribunal ruled in favour of Naftogaz in 2023 over assets seized after Moscow annexed Crimea. Norway recognises the ruling.

The Professor Molchanov is a research vessel that is also used for expedition cruises. It is now being held at the quay in Barentsburg, a Russian-operated mining settlement in Svalbard.

The vessel will stay there until the governor or Norwegian courts make a decision.

Russia’s Foreign Ministry summoned Norwegian Ambassador Heidi Olufsen on Thursday and protested against the seizure.

The ministry said Russia rejected the seizure of the Professor Molchanov. It also accused Norway of taking actions to limit Russia’s presence in Svalbard.

The Russian Embassy in Norway said it would appeal the decision.

Norway said the seizure was not a political move against Russia. Norwegian authorities said they were enforcing a court ruling and were not a party to the dispute between Russia and Naftogaz.

Norwegian Justice Ministry spokesperson Frank Lynum said the governor of Svalbard was required to carry out the court order.
Lynum said the matter was being handled through the normal Norwegian court process.

Russia Says Vessel Is Its Only Supply Route

Russia says the Professor Molchanov is the only remaining supply route for its settlements in Svalbard. It says this is because of sanctions Norway imposed after Russia’s full-scale invasion of Ukraine.

Russia operates a coal mine in Barentsburg, where around 350 Russian and Russian-speaking Ukrainian residents live. It also operates a smaller settlement at Pyramiden.

Svalbard is governed by a 1920 treaty. The treaty recognises Norwegian sovereignty over the Arctic archipelago but gives nationals of countries that signed it equal rights to carry out certain economic activities and exploit natural resources there.

Norway says those rights do not mean Russian people or companies operating in Svalbard are free from Norwegian laws and regulations.

The seizure is part of Ukraine’s effort to recover money from Russian state and commercial assets held abroad. Kyiv is seeking compensation for losses caused by Moscow’s actions against Ukraine.

References: Channel NewsAsia, Kyiv Post