$700m superyacht linked to Putin undergoes refit while impounded

The $700m superyacht Scheherazade, which was arrested in Italy last year due to possible links with Vladimir Putin, has been undergoing a refit while impounded, according to a report in the Financial Times (FT).

The 140-metre Lürssen yacht has been sitting in the Tuscan port of Marina di Carrara since May 2022, when it was seized while undergoing repairs.

Scheherazade has ‘significant economic and business links’ with ‘prominent elements of the Russian government,’ the Italian ministry has said — without ever formally naming the owner.

However, the FT reports that, while impounded, Italy has allowed its unnamed, but sanctioned, owner to pay not just for its staff and maintenance but also for it to be refitted.

The superyacht Scheherazade was launched in 2019 and features gold-plated bathroom fixtures, two helicopter pads, and 22 cabins.

The refit is reportedly being carried out by Milan-listed Italian Sea Group. When approached by the outlet, the firm confirmed the works and maintenance are being paid for by the vessel’s owner, but refused to give further details.

In 2022, Bloomberg reported that US officials alleged Russian billionaire Eduard Khudainatov was the ‘straw owner’ of the vessel, on behalf of Putin.

Russia-linked superyachts

A spokesperson from the European Commission spokesperson tells the FT that “member states are responsible for implementing sanctions,” and that asset freezes do not affect the ownership of the assets.

Since the invasion of Ukraine, the EU has imposed sanctions on almost 2,000 Russian individuals and entities.

In January 2023, heads were being scratched in Croatia, after a yacht owned by sanctioned Uzbek oligarch Alisher Usmanov disappeared from its dock in the central Adriatic. Reports claim the yacht was replaced with a decoy yacht three months prior.

In March 2023, Phi, a superyacht reportedly owned by a Russian oligarch, was spotted at London’s Canary Wharf — a year after the vessel was seized.

And, in June 2023, former Google CEO Eric Schmidt purchased the Russian-linked superyacht Alfa Nero, which was ditched in Antigua after the invasion began.