Norway seizes Russian ship to enforce $4.2 billion compensation claim

Norway has seized a Russian ship in the Arctic, in order to enforce a $4.22 billion compensation claim that Ukrainian energy company Naftogaz won due to the seizure of its property after Russia's annexation of Crimea in 2014.

The ship "Professor Molchanov" was seized near the Norwegian archipelago of Svalbard. The governor of Svalbard confirmed the seizure and announced that the ship will be kept in this territory.

The Russian ambassador to Norway, Nikolai Korchunov, stated that Moscow will seek the release of the ship through legal channels, also demanding guarantees of the safety of passengers and crew, writes Reuters .

The ship arrived in Barentsburg, a Russian settlement in Svalbard, on Tuesday with a group of Russian scientists. According to published information, no crew members or members of the expedition were arrested and the ship was simply prevented from leaving the port.

Naftogaz has been pursuing legal proceedings against Russia for compensation for the expropriation of its Crimean properties since 2016. In April 2023, an arbitration court in The Hague ordered Russia to pay Naftogaz $4.22 billion, excluding interest and legal costs.

Lawyers for Naftogaz had been tracking the movements of the ship, which is used for tourist cruises, for months. Before its arrival, they requested the seizure and forced sale of the ship. The Nord-Troms and Senja regional court granted the request on Monday and ordered the Svalbard authorities to ensure that the ship does not move.

Naftogaz said it was coordinating the implementation of the court ruling in several jurisdictions, including the US, France, the UK and Finland, where Russian assets have been frozen. Russia has appealed, claiming it was not notified of the proceedings. /Telegraph/