Norwegian authorities have seized a Russian commercial passenger vessel in the Svalbard archipelago following a request from Ukraine’s state-owned energy company Naftogaz, as Kyiv seeks to enforce a $4.22 billion arbitration award against Russia.

The detention of the vessel, named Professor Molchanov, marks a new step in Ukraine’s efforts to pursue Russian commercial assets abroad over claims linked to Moscow’s seizure of Ukrainian energy assets in Crimea.

Naftogaz obtained the arbitration award in 2023, arguing that Russia had unlawfully taken control of the company’s assets following the annexation of Crimea in 2014. After Moscow refused to comply with the ruling, the Ukrainian company began seeking legal action in foreign jurisdictions to identify and seize Russian-linked assets.

Naftogaz CEO Sergii Fedorenko said the detention of the vessel in Svalbard showed that Russia could not avoid responsibility for the claims. He said the company would continue tracking Russian assets around the world.

The move was carried out after a decision by the Nord-Troms District Court on August 31. Svalbard Governor Lars Fause said the vessel was prevented from leaving its current location in Barentsburg.

Moscow condemns move

Russia criticized the decision, describing the detention as politically motivated and a violation of international law.

Russian President Vladimir Putin accused actions targeting Russian civilian vessels and commercial shipping of amounting to "acts of state terrorism." Moscow said the detention should not be viewed as a simple commercial dispute and announced that it would challenge the decision.

Russia’s ambassador to Norway, Nikolay Korchunov, said the embassy was in contact with the vessel’s passengers and crew and would provide assistance.

Wider legal battle over Russian assets

The Professor Molchanov, which is used for commercial exploration and tourism voyages, is known for operating in the waters around Svalbard.

The case highlights how Ukraine’s efforts to recover billions of dollars from Russia have expanded beyond financial claims and energy assets into international legal disputes involving commercial property.

The detention of the vessel adds another dimension to the broader dispute between Kyiv and Moscow over sanctions, compensation claims and Russian assets held abroad.(ILKHA)