Norway on Wednesday detained a Russian ship in the Arctic to enforce an international arbitration award issued in The Hague relating to Russia's seizure of assets belonging to Ukrainian energy company Naftogaz in Crimea.
U.S. law firm Covington, representing Naftogaz, said the vessel, named Professor Molchanov, was brought to port by Norwegian coast guard forces after a 24-hour standoff off the Svalbard archipelago. The ship is Russian-owned and used for commercial expedition cruises, including voyages to Svalbard.
The detention came after Russia failed to pay Naftogaz $4.22 billion plus interest and legal costs, as ordered by a 2023 arbitration ruling in The Hague over compensation for assets seized in Crimea, the Ukrainian peninsula illegally annexed by Russia in 2014.
In a post on social media platform X, Naftogaz said the detention was part of "the global efforts to enforce the arbitration award Naftogaz obtained against the Russian Federation regarding the unlawful expropriation of its assets in Crimea." Naftogaz has pursued its case against Russia since 2016 seeking compensation.
Russia's state news agency TASS quoted the Russian Foreign Ministry spokesperson as calling Norway's action "piracy." Russia's Minister for the Development of the Far East and Arctic, Alexei Chekunkov, said Moscow would appeal the ruling and described the move as "another example of legal nihilism and lawlessness on the part of Western countries," according to Interfax.
Sergii Fedorenko, acting CEO of Naftogaz, said: "Russia cannot evade responsibility simply by refusing to comply with international arbitration rulings. We will continue to track Russian assets worldwide until compensation is paid to Naftogaz and other group companies."
Regarding passengers on board, Naftogaz said they were being processed by Norwegian authorities.
