Norway bars Russian vessel Professor Molchanov from Svalbard as Naftogaz pursues $4.22 billion Crimea award
Norwegian authorities have seized the Russian vessel Professor Molchanov and barred it from departing Svalbard, acting on a direct request from Naftogaz, Ukraine's state energy company. The enforcement action follows…
Key takeaways
- Norwegian authorities seized the Russian vessel Professor Molchanov and barred it from leaving Svalbard at the request of Ukraine's state energy company Naftogaz.
- The action enforces a $4.22 billion arbitration award against Russia stemming from assets seized in Crimea, which Russia has not paid.
- Naftogaz is pursuing a multi-jurisdictional enforcement campaign, identifying Russian assets in countries whose authorities will honor the award and filing for seizure.
- Naftogaz says it will continue pursuing Russian assets across additional countries until the full amount is recovered.
Norwegian authorities have seized the Russian vessel Professor Molchanov and barred it from departing Svalbard, acting on a direct request from Naftogaz, Ukraine's state energy company. The enforcement action follows Russia's nonpayment of a $4.22 billion arbitration award stemming from assets seized in Crimea. Naftogaz says the pursuit will extend to other jurisdictions until Russia pays in full.
The $4.22 billion award is the number in focus. That judgment was handed down against Russia over assets seized in Crimea, and Naftogaz as the creditor has pursued a deliberate enforcement approach: identify Russian assets in jurisdictions where local authorities will honor the award and file for seizure. Norway has done that. The Professor Molchanov sits at Svalbard with a departure ban in effect.
The gap between one vessel and that judgment is wide. Naftogaz has been clear that Norway is a step in what it has described as a continuing multi-jurisdictional campaign. The company has stated its intention to pursue Russian assets across additional countries until the full amount is recovered.
What to watch is any enforcement action filed in a second jurisdiction. A Russian legal challenge to the Svalbard detention would also clarify whether Norwegian authorities hold the seizure or release the vessel.