Norway Seizes Russian Ship as Naftogaz Pursues $4.22 Billion Award
Norwegian authorities have seized a Russian vessel at the request of Ukrainian state-owned energy company Naftogaz as the company works to collect billions of dollars awarded to it in a legal case against Russia.
The action is part of Naftogaz’s effort to enforce a $4.22 billion arbitration award related to property seized after Russia annexed Crimea in 2014.
According to Naftogaz, the Nord-Troms and Senja District Court ordered the seizure of the vessel on August 31. The ship, Professor Molchanov, is owned by Russia and has been used for commercial expedition cruises, including trips to Svalbard, a Norwegian archipelago.
Ship Cannot Leave Its Current Location
The Norwegian court order prevents the ship from leaving its current location. The Governor of Svalbard is also required to take the necessary steps to make sure the vessel is not moved.
The seizure comes as Naftogaz continues efforts to obtain compensation from Russia.
Naftogaz has pursued legal action against Russia since 2016 over property that Moscow took when it annexed Crimea in 2014.
In April 2023, a tribunal in The Hague ordered Russia to pay Naftogaz $4.22 billion, along with interest and legal costs. The award was intended to compensate the Ukrainian company for assets seized in Crimea.
Russia has not paid the amount.
Naftogaz Acting CEO Sergii Fedorenko said Russia could not avoid responsibility simply by refusing to follow the international arbitration award.
Naftogaz Pursues Russian Assets in Multiple Countries
The Norwegian seizure is not the only enforcement effort underway.
Naftogaz said it is coordinating measures in several countries as it attempts to enforce the arbitration award. Those jurisdictions include the United States, France, the United Kingdom and Finland.
Russian assets have been frozen in Finland, according to the report.
Naftogaz said it plans to continue pursuing Russian assets around the world until the compensation awarded to Naftogaz and other companies within the Naftogaz Group is paid.
Russia, meanwhile, is appealing the enforcement process. It says it was not given notice.
What Happens Next Remains Unclear
The seizure in Norway prevents Professor Molchanov from being moved, but the next step in the process was not immediately clear.
It was reported that it was unable to reach the Nord-Troms and Senja District Court for comment outside business hours. Naftogaz also did not provide details about what would happen next with the vessel.
For now, the ship remains subject to the Norwegian court order while Naftogaz continues its broader effort to enforce the $4.22 billion award against Russia in multiple countries.
