Norway Ship Seizure Raises Fears Over Russian Asset Confiscations

Norway said Friday it would provide necessary assistance to Russian citizens stranded in the Arctic after authorities seized a Russian ship at the request of Ukraine’s state energy company Naftogaz, despite Moscow accusing Oslo of “piracy.”

The Professor Molchanov remains detained at Barentsburg in Norway’s Svalbard archipelago under a court order connected to Naftogaz’s effort to enforce a $4.22 billion arbitration award against Russia for assets illegally seized following Moscow’s 2014 annexation of Crimea.

“Norwegian authorities are doing what we can to protect Russian citizens who have found themselves in a difficult situation in Svalbard now,” Norway’s Foreign Ministry told Reuters, adding that Oslo was fulfilling its international obligations.

The seizure left passengers and crew aboard the vessel unable to continue their journey and raised questions about supplies reaching Russia’s isolated settlements on the Arctic archipelago.

Norway’s government said Russian companies are regularly granted exemptions from sanctions to allow food and other essential goods to reach the settlements.

Barentsburg, where the Professor Molchanov is being held, and another Russian settlement on Svalbard have a combined population of 392, compared with 2,914 people across the archipelago, according to Statistics Norway.

The new statement underscores Oslo’s position that enforcing the Ukrainian compensation award does not mean abandoning its responsibilities toward civilians living on Svalbard.

Ship seized over Russia’s seizure of Ukrainian assets

As Kyiv Post reported earlier this week, Norwegian authorities seized the Professor Molchanov in Barentsburg after the Nord-Troms and Senja District Court issued an order on Aug. 31 at Naftogaz’s request.

Naftogaz said the action forms part of a broader international campaign to recover compensation from Russia for the unlawful expropriation of the Ukrainian company’s assets in Crimea.

A Hague-based arbitration tribunal ruled in favor of Naftogaz and other companies in the group in 2023.

The award has been recognized as enforceable in Norway, and Naftogaz says Russia’s outstanding obligation amounts to approximately $4.22 billion, excluding additional interest and costs.

The Professor Molchanov is owned by the Russian Federation and is used for both scientific expeditions and commercial cruises, according to Naftogaz.

The 71-meter vessel can accommodate up to 32 crew members and 52 passengers and includes a library, sauna, bar and two restaurants.

Although the value of the vessel represents only a fraction of Russia’s outstanding obligation to Naftogaz, its seizure is significant because Kyiv has increasingly sought to turn arbitration victories into the actual confiscation or sale of Russian assets abroad.

Naftogaz has said it intends to continue pursuing Russian property internationally until Moscow pays the compensation awarded over its Crimea losses.

Moscow cries ‘piracy’

Russia reacted angrily to the seizure.

As Kyiv Post reported on Sept. 4, Moscow demanded that Norway immediately release the Professor Molchanov and ensure the safety of its passengers and crew.

Russia’s Foreign Ministry summoned Norwegian Ambassador Heidi Olufsen in protest, while Russian officials accused Oslo of undermining Moscow’s presence in Svalbard and described the seizure as “piracy.”

Russia has said it will appeal the Norwegian court decision.

Norwegian authorities have rejected Moscow’s attempt to portray the case as a political action by the government.

Oslo says the governor of Svalbard was legally required to execute the Norwegian court order and that the government itself is not a party to the underlying dispute between Naftogaz and Russia.

Svalbard adds sensitive Arctic dimension

The dispute has also drawn attention because of Svalbard’s unusual legal and geopolitical status.

Under the 1920 Svalbard Treaty, Norway exercises sovereignty over the archipelago while citizens and companies from treaty signatory states are granted equal rights to engage in certain commercial activities there.

Russia has maintained a presence on the islands for decades and operates a coal mine at Barentsburg.

Moscow has argued that Western sanctions and restrictions threaten its ability to maintain its settlements, while Norway maintains that the treaty does not exempt Russian citizens, companies or state property from Norwegian law.

Norway’s announcement Friday seeks to separate two issues increasingly intertwined by Moscow: enforcement of a Ukrainian legal judgment against Russian state property and the provision of essential goods and assistance to civilians living in Svalbard.

For Naftogaz, the ship remains another Russian asset caught in Kyiv’s widening international effort to make Moscow pay for property seized after the occupation and illegal annexation of Crimea.