Norwegian authorities detained the Professor Molchanov in Svalbard under a Naftogaz-backed court order, as the Ukrainian energy group pursues compensation from the Russian Federation for assets taken in Crimea.
The Nord-Troms and Senja District Court authorized the attachment on Aug. 31. The Governor of Svalbard enforced it two days later. The Governor’s office said the vessel could not leave Barentsburg unless the Governor or the court changed the restriction.
A tribunal of the Permanent Court of Arbitration issued its award on Apr. 12, 2023, ordering the Russian Federation to pay $4,222,875,858.81. Interest runs from March 18, 2014, at six-month EURIBOR plus 2%, compounded every six months until payment. The tribunal also ordered reimbursement of $23,889,036.26 and €882,435.90 in arbitration costs, with interest from the award date.
The award names Naftogaz and five other Ukrainian companies as claimants, and the Russian Federation as respondent. Gazprom is not listed as a party. The dispute stems from Russia’s 2014 takeover of Naftogaz group assets in Crimea; arbitration began in October 2016.
Naftogaz says the ship belongs to the Russian Federation and has been used for commercial expedition voyages, including trips to Svalbard. Acting CEO Sergii Fedorenko said Russia “cannot evade responsibility” for the unpaid award. Svalbard Governor Lars Fause told High North News that Norway was not a party to the civil dispute.
The seizure also disrupted travel for 69 Russian citizens who had been due to sail on the vessel. On Sept. 8, the Governor’s office said Norwegian authorities had helped them return to Russia via Kirkenes.
In a separate measure, Norway’s Justice and Public Security Ministry adopted a regulation on Sept. 18 limiting attachment of supplies and operating materials needed by Svalbard communities. The ministry said creditors could reach those essentials only after other attachable property in Norway had been ruled out. It cited the archipelago’s vulnerable supply lines and said the rule was adopted without a hearing.
A 1920 treaty recognizes Norway’s sovereignty over Svalbard while granting citizens and companies from treaty parties equal rights in specified activities, according to Norway’s parliament.
The Barents Observer reported Oct. 22 that lawyers for Naftogaz and Arktikugol had argued over the vessel earlier that week and that a ruling was expected within days.
