Norway Seizes Russian Vessel to Enforce $4.22 Billion Naftogaz Arbitration Award

Norwegian authorities seized a Russian vessel in the Arctic archipelago of Svalbard on Wednesday at the request of Ukraine's state-owned energy company Naftogaz as part of efforts to enforce a $4.22 billion arbitration award against Russia, The Associated Press (AP) reported.

The Russian vessel Professor Molchanov is seized in Svalbard as part of efforts to enforce a $4.22 billion arbitration award won by Ukraine's Naftogaz. [Photo: Арктикуголь]

The vessel, Professor Molchanov, was seized at the port of Barentsburg following a Norwegian court order issued Aug. 31. The ship is owned by the Russian state and is used for commercial expedition cruises. 

Naftogaz is seeking compensation for energy assets that it says Russia unlawfully expropriated after annexing Crimea in 2014.

An arbitration tribunal in The Hague ordered Russia in April 2023 to pay Naftogaz approximately $4.22 billion, plus interest and legal costs. The award has also been recognized as enforceable in Norway. 

Russia has refused to pay the award, prompting Naftogaz to pursue Russian commercial assets in other countries as part of its enforcement strategy.

The Norwegian authorities said the seizure followed a ruling by the Nord-Troms and Senja District Court. The Governor of Svalbard, acting as bailiff, ordered the vessel to remain in Barentsburg.