FT: Sale of confiscated yachts to Russian billionaires causes difficulties for Western countries

According to the Financial Times, deciding the fate of superyachts for Western governments “will test the effectiveness of high-stakes economic sanctions.”

In particular, the newspaper writes about the 58-metre superyacht Phi, whose ownership is attributed to Russian businessman Sergei Naumenko. Since March 2022, the ship has been docked in London’s Canary Wharf.

Jaffa&Co lawyer Paul Dickie, who represented Phi’s owners, told the Financial Times the yacht had been attacked by squatters, the name given to those who crouch in abandoned or unoccupied spaces and buildings.

There is now a sign posted on the side of the ship stating that any potential violators will be prosecuted “to the fullest extent of the law.”

In addition, confiscated yachts must be protected against sabotage attempts. In February 2022, a Ukrainian mechanic attempted to deliberately sink the Lady Anastasia yacht, allegedly belonging to Rosoboronexport director Alexander Mikheev.

Another example is the 106-metre yacht Amadea, which was shipped to the port of San Diego in the United States. The US government has opened a confiscation case based on claims that it belongs to billionaire Suleiman Kerimov.

However, the superyacht remains in port and costs around $9 million a year to maintain, paid for by the US government budget. The country’s Justice Ministry has tried to sell the ship, citing “excessive” costs.

At the same time, governments face difficulties in selling, even if they could confirm ownership and obtain permission to sell. FT reports on the case of the Alfa Nero yacht, which allegedly belonged to PhosAgro co-owner Andrey Guryev.

In June 2023, it was sold at auction for $67 million to former Google CEO Eric Schmidt, but the potential buyer later backed out of the deal, citing legal risks.

The fate of Russian billionaires’ superyachts is not the only sanctions-related problem facing Western countries. In early July, The New York Times wrote about a dispute between American authorities: the US Treasury wants to impose sanctions against Russia’s “shadow fleet,” while the White House fears that this will lead to higher energy prices.

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