Rescuers are using a remote controlled submarine to look for the type Mi-8 helicopter, which crashed near the Arctic archipelago belonging to Norway.
But there were "no results" in the overnight search, which was centred near Cap Heer after a sighting of oil on the water.
Tore Hongset, leader of Norway's rescue co-ordination centre, said: "We've found oil spills and air bubbles rising to the surface, and a vessel in the area has observed what appears to be a submerged object. It may be the helicopter."
According to newspaper Svalbardposten, the alert was raised after the helicopter failed to land at a heliport in Barentsburg at its scheduled arrival time.
Five passengers and three crew on board are understood to be Russian nationals.
The helicopter was equipped with life rafts.
Barentsburg is a Russian coal-mining town of about 500 people. Under a 1920 treaty, Norway has sovereignty over the archipelago but other signatory countries have rights to exploit its natural resources.
Svalbard is more than 500 miles (800km) north of Norway's mainland. It is known for stunning views of snow-covered mountains, fjords and glaciers.
In March 2008, three people were killed when a Russian Mi-8 helicopter with nine people on board crashed near Barentsburg.
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