The rescue service for northern Norway says the helicopter was en route to Barentsburg, Svalbard's second- largest settlement, from the Russian settlement of Pyramiden.
"We have found oil on the water but no wreck," Olav Bjoergaas, a spokesman for the Joint Rescue Coordination Centers for northern Norway, told The Associated Press. He added that there was poor visibility and heavy snowfall in the region.
Svalbard is more than 800 kilometers north of Norway's mainland. It's known for stunning views of snow-covered mountains, fjords and glaciers.
Pyramiden also was a Russian mining settlement, but was largely abandoned in 1998. It attracts some tourists on excursions to see the empty Soviet-era buildings and the world's northernmost monument to Vladimir Lenin.
The rescue service said the helicopter went down 2 to 3 kilometers from Barentsburg at 3.30 pm.
The Mi-8 helicopter belonged to Russian coal company Arktikugol but was operated by charter company Konvers Avia, the Russian Energy Ministry said in a statement.
Tore Hongset, another spokesman for the rescue coordination center, told Norwegian news agency NTB that it did not receive any mayday signal from the helicopter.
"As far as we have heard, we are talking about a crash," Hongset said.
Several units, including two helicopters from the local Svalbard governor and ships from the coast guard and local fishermen were at the presumed crash site, Bjoergaas said. Local hospitals were on high alert.
In March 2008, three people were killed after a Russian Mi-8 helicopter with nine people on board crashed about 4 kilometers from Barentsburg.
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