Professor Molchanov Beverley Howlett / MarineTraffic
Crime & Piracy

Norway acts as debt collector for Ukraine, impounding Russian ship

Reuters

Norwegian authorities have seized a Russian vessel at the request of Ukrainian state firm Naftogaz, to ensure that the Russian Federation meets its outstanding obligations, Naftogaz said on Wednesday.

Naftogaz has been pursuing legal action against Russia since 2016 to seek compensation for Moscow's expropriation of Naftogaz property when Russia annexed Crimea in 2014.

A tribunal in The Hague in April 2023 ordered Russia to pay Naftogaz $4.22 billion plus interest and legal costs to compensate for assets it seized in Crimea, but Moscow has not done so.

Naftogaz said the seizure was ordered by the Nord-Troms and Senja District Court on August 31. It said the vessel, the Professor Molchanov, was owned by Russia and used for commercial expedition cruises, including to the Norwegian archipelago Svalbard.

"Russia cannot evade responsibility simply by refusing to comply with an international arbitral award," said Naftogaz Acting CEO Sergii Fedorenko.

Under the court order, the vessel may not leave its current location. The Governor of Svalbard is required to take the necessary measures to prevent the vessel from being moved.

Reuters was not immediately able to reach the Nord-Troms and Senja District court for comment outside business hours and Naftogaz did not say what the next step would be.

"We will continue to pursue Russian assets around the world until the compensation awarded to Naftogaz and other Naftogaz Group companies is paid," it said.

Naftogaz has said it is coordinating enforcement measures across multiple jurisdictions, including the United States, France, the United Kingdom and Finland, where Russian assets have been frozen. Russia is appealing the process, saying no notice was given.

(Reporting by Pavel Polityuk; Editing by Philippa Fletcher)