A Russian oligarch’s yacht, named Amadea, has become a financial burden for the U.S. government, costing nearly $1 million a month to maintain. The U.S. Department of Justice is seeking permission to sell the yacht, which was seized in 2022, alleging that it belongs to sanctioned Russian billionaire Suleiman Kerimov. The government argues that the high costs of maintenance and crew, totaling $922,000 a month, are excessive for taxpayers to bear.
The monthly charges for Amadea include $600,000 in running costs, with $360,000 allocated for the crew, $75,000 for fuel, and $165,000 for maintenance, waste removal, food, and other expenses. Additionally, there are monthly pro-rata insurance costs of $144,000 and special charges, such as dry-docking fees, amounting to $178,000. These expenses highlight the financial challenges associated with seizing and selling assets owned by Russian oligarchs following Russia’s invasion of Ukraine.
The battle over Amadea sheds light on the difficulties faced in proving ownership of Russian assets and selling them. The legal process has proven to be time-consuming and costly. Several Russian billionaires have been engaged in court battles over their impounded assets, including private jets and superyachts. In London, billionaire Eugene Shvidler has been fighting for the release of his private jets, while Sergei Naumenko has been appealing the detention of his superyacht Phi.
The dispute over Amadea began when it was seized in Fiji at the request of the U.S. government. The U.S. alleges that the yacht belongs to Kerimov, but attorneys for Eduard Khudainatov, an ex-Rosneft CEO who has not been sanctioned, claim that he is the rightful owner and seek to regain possession of the vessel. Khudainatov’s attorneys oppose the sale of the yacht, arguing that it could lead to a distressed sale price and that the maintenance costs are insignificant compared to the potential sale value.
The U.S. government claims that Kerimov concealed his ownership of Amadea through a network of shell companies and other owners. According to court filings, emails between crew members indicate that Kerimov and his family were the beneficial owners of the yacht, regardless of the vessel’s titleholder. The government also asserts that Kerimov has been attempting to sell Amadea for years, suggesting that a sale would align with his intentions.
Even if Amadea were to be sold quickly, the proceeds would not automatically go to the government. The money would be held while Khudainatov and the government continue their legal battle over ownership and forfeiture.
The case of Amadea highlights the complexities involved in dealing with assets owned by Russian oligarchs and raises questions about the effectiveness of freezing these assets as a means of pressuring Russia and financing Ukraine’s war efforts. The legal process has proven to be lengthy and expensive, demonstrating the challenges faced by governments in seizing and selling such assets. As the battle for Amadea continues, it remains to be seen how this situation will unfold and what implications it may have for future asset seizures.
