Norwegian authorities have seized a Russian ship, the Professor Molchanov, in the Arctic, drawing accusations of piracy from the Kremlin.

The vessel was detained late Wednesday in Barentsburg, a Russian-operated settlement on the Norwegian Arctic archipelago of Svalbard. The seizure was carried out on behalf of Naftogaz, a Ukrainian energy company, which is seeking to enforce a $4.22 billion compensation award against Russia.

The award stems from assets that Moscow seized when it annexed Crimea in 2014. Naftogaz has been pursuing Russia for compensation since 2016, and an arbitration court in The Hague ordered Russia in April 2023 to pay the award plus interest and legal costs.

Russia has stated it does not recognize the court's jurisdiction in this case and is refusing to pay. The Russian Foreign Ministry called the arrest an act of piracy and summoned the Norwegian ambassador to lodge a strong protest, vowing to secure the vessel's release.

Norway's Ministry of Justice clarified that the dispute over the ship is between Naftogaz and Russia and does not involve the Norwegian government. However, Norwegian officials said they would propose ways for the ship's crew and passengers to return to Russia if they wished.

The Professor Molchanov, a 71-meter vessel built in 1982, is used for scientific expeditions and commercial cruises. It arrived in Barentsburg on Tuesday with a group of Russian scientists. News of the seizure emerged Wednesday evening, with reports indicating the ship was forbidden from leaving port but no arrests were made.

Naftogaz has indicated it will continue to pursue Russian assets globally until the compensation is paid, listing jurisdictions such as the US, France, Britain, and Finland, where Russian assets have been frozen. The energy firm's legal representatives stated that while the ship's value is a fraction of the total owed, its seizure is a significant step toward recovering the funds.

Svalbard is governed under a 1920 treaty that permits citizens of signatory states, including Russia, to settle there. Barentsburg is one of two Russian settlements on the archipelago.