US Government Seeks to Auction Russian Oligarch's $7 Million-a-Year Yacht

The U.S. government revealed that it spends over $7 million annually on maintaining a superyacht confiscated from a sanctioned Russian oligarch. It is now pushing for the auction of the yacht while the ownership dispute is ongoing.

In May 2022, authorities in Fiji seized the 348-foot, $300 million Amadea based on a U.S. warrant claiming ownership by Suleiman Kerimov, a billionaire subject to U.S. sanctions. Eduard Khudainatov, former CEO of Russian company Rosneft, is contesting the auction.

According to federal prosecutors, the monthly maintenance cost of $600,000 for the Amadea is excessive, justifying the auction. Attempts to make Khudainatov responsible for the yacht's upkeep have failed. Prosecutors believe that Khudainatov is acting as a front to conceal Kerimov's involvement and that maintenance payments are crucial to preserve the yacht's value.

Khudainatov has until February 23 to respond to the prosecutors' request. His lawyers argue that the motion to sell the vessel is premature and should be denied until the constitutionality of the seizure is determined.

The yacht was confiscated amidst increased sanctions against individuals connected to Russian President Vladimir Putin, aimed at pressuring Russia to end its war against Ukraine. If the auction is successful, the U.S. government would likely transfer the proceeds to Ukraine.

Prosecutors claim that Kerimov violated U.S. sanctions by making maintenance payments for the Amadea through the U.S. financial system, making the vessel subject to forfeiture. Kerimov and his family have an estimated net worth of $10.7 billion.

Source: Reuters