Norwegian authorities have seized the Russian-owned expedition cruise ship Professor Molchanov in the Arctic as part of efforts to enforce a compensation award obtained by Ukrainian energy company Naftogaz over the expropriation of its assets in Crimea.
The seizure took place on Wednesday, September 2nd, near Norway’s Svalbard archipelago after Russia failed to pay Naftogaz US$4.22 billion, plus interest and legal costs, following an arbitration ruling issued in The Hague in 2023. The award relates to assets taken by Russia in Crimea following its annexation of the peninsula in 2014.
Naftogaz said the action formed part of international efforts to enforce the arbitral award against the Russian Federation. The company has been pursuing compensation through legal proceedings since 2016.
According to Covington, the US law firm representing Naftogaz, Norwegian authorities took control of Professor Molchanov following a 24-hour standoff with the Norwegian Coast Guard. The law firm said it had monitored the vessel for several months.
Professor Molchanov is a Russian-owned vessel used for commercial expedition cruises, including voyages to Svalbard. Naftogaz said Norwegian authorities were handling the passengers who were on board at the time of the seizure.
The Russian government has challenged the Norwegian action. Russia’s state news agency TASS reported that a Foreign Ministry spokesperson described the seizure as piracy, while Russian Minister for the Development of the Far East and the Arctic Alexei Chekunkov said Moscow would contest the ruling. According to Interfax, Chekunkov characterized the seizure as another example of what he described as Western legal and governmental lawlessness.
Naftogaz said the Russian Federation could not avoid responsibility for the arbitration award by refusing to comply with it. Acting CEO Sergii Fedorenko said the company would continue seeking Russian assets in other jurisdictions until the compensation awarded to Naftogaz and other companies within the group was paid.