Seized Russian superyacht faces sale over ‘excessive’ $7m upkeep
The US government has urged a judge to let it auction a sanctioned superyacht, as the dispute over its ownership continues to rumble on.
The Russian-owned superyacht Amadea (pictured above) is costing the US government over $600,000 each month ($7m a year) to maintain — a bill that is ultimately being footed by US taxpayers.
This monthly bill includes $360,000 to pay the crew, $75,000 for fuel and $165,000 for maintenance, waste removal, food and other expenses, according to court papers filed by the US in New York on Friday (9 February 2024).
The 106-metre Lürssen superyacht Amadea, said to be owned by Russian billionaire Suleiman Kerimov, was arrested by the Fijian Police Force in April 2022, two days after arriving in Fiji from Mexico. Kerimov had been sanctioned by the United States, Britain and the European Union.
The yacht — which was found to be housing a genuine Fabergé egg — has since been subject to a number of legal wrangles over its ultimate ownership, with oligarch Eduard Khudainatov, who is not sanctioned, challenging attempts to auction the vessel by claiming ownership of the vessel.
In previous court filings, prosecutors have said Khudainatov is acting as Amadea’s “straw owner”.
In June 2022, the vessel was moved from Fiji to the US after a Fiji court ruled that it was a waste of money for Fiji to maintain the vessel amid legal wrangling over its seizure. which left the country footing the bill for several months.
On Friday in Manhattan, federal prosecutors told US district judge Dale Ho that the $600,000 average monthly maintenance bill for the Amadea has been “excessive”, and that the mounting costs justify an auction. They claim negotiations with Khudainatov to get him to pay for the yacht’s upkeep have broken down.
Now, Khudainatov has until 23 February 2024 to reply to the prosecutors’ request.
The Guardian reports that, in a statement, his lawyers said the motion to sell the vessel was “premature” and urged Ho to deny it until he “determines whether the seizure was unconstitutional”.
If the yacht is eventually auctioned, proceeds would likely be used to assist Ukraine’s war effort. In January, the seized 93m superyacht Royal Romance was handed to the Ukrainian government after a landmark ruling by a Croatian court. The sale of Royal Romance will be the first example of the sale of seized assets located abroad in Ukraine’s history.
Main image courtesy of US Department of Justice.
