Kathmandu— Norway has seized a Russian ship, the Professor Molchanov, off the Norwegian Arctic archipelago of Svalbard to enforce a compensation claim by Ukrainian energy firm Naftogaz. The seizure occurred on Wednesday after Russia failed to pay $4.22 billion plus interest and legal costs for assets it seized in Crimea following a 2023 tribunal ruling at The Hague.

Background of the Seizure

The compensation claim stems from Russian asset seizures in Crimea after its illegal annexation in 2014. Naftogaz has been pursuing legal action against Russia since 2016 to seek compensation for the expropriation of its property in Crimea. The seizure is part of global efforts to enforce an arbitral award obtained by Naftogaz against Russia.

Russian Response

Russia's Ministry of Foreign Affairs called the Norwegian action “piracy.” Alexei Chekunkov, Russia’s minister for the development of the Russian Far East and Arctic, stated that Moscow would challenge the ruling. He described Norway’s seizure as “another example of Western countries’ legal nihilism and lawlessness,” according to Interfax news agency.

Details of the Seizure

The Professor Molchanov was taken after a 24-hour standoff with the Norwegian Coast Guard. The vessel, owned by Russia, is used for commercial cruises and had been tracked by Covington, the US law firm representing Naftogaz, for months. Passengers on board are being handled by Norwegian authorities.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.