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A multimillion-dollar superyacht once owned by a Russian oligarch has gone to auction

Dustin Jones

The Axioma superyacht, seen in Gibraltar in March, once belonged to Russian oligarch Dmitrievich Pumpyansky. The vessel was seized last March in accordance with sanctions imposed by Britain and the European Union. It will be auctioned off Tuesday, with the proceeds going to JP Morgan Chase. JON NAZCA/REUTERS hide caption

The Axioma superyacht, seen in Gibraltar in March, once belonged to Russian oligarch Dmitrievich Pumpyansky. The vessel was seized last March in accordance with sanctions imposed by Britain and the European Union. It will be auctioned off Tuesday, with the proceeds going to JP Morgan Chase.

A superyacht once belonging to a Russian billionaire went to auction Tuesday in the British territory of Gibraltar. The vessel, estimated to have a value in the tens of millions of dollars, was seized in March as part of Western sanctions against Russia following the invasion of Ukraine.

Gibraltar's Admiralty Marshal was tasked with appraising and selling the yacht, which received 63 bids, according to court documents. Its official appraised value is "a confidential matter which cannot be disclosed," although outside estimates reportedly place it anywhere from $42 million to $75 million. Details about who ultimately purchases the vessel and for what price will be made public when the transaction is complete.

Measuring 236 feet long and weighing over 1,600 tons, the Axioma is a sight to behold. It can accommodate 12 guests in six cabins — along with a 20-person crew in 12 other rooms — and features a gymnasium, full-service spa, infinity pool and luxury cinema, as stated on the Howe Robinson Partners auction site.

The cost to charter the Axioma for a week runs an average of roughly $500,000 , not including other operating costs, according to Yacht Charter Fleet.

The former owner of the ship is Dmitrievich Pumpyansky, once Russia's largest steel pipe manufacturer and currently worth $2 billion, according to Forbes . Unfortunately for Pumpyansky, he was sanctioned by Britain and the European Union after the invasion.

Other superyachts owned by Russian oligarchs have been detained as a result of the sanctions, but the Axioma is the first to be sold off, the Guardian reported.

Despite calls for the proceeds of the sale to benefit Ukraine, the funds will instead be paid to JP Morgan Chase. According to the Guardian, the international bank had a loan agreement with Pumpyansky's holding company, Pyrene Investments.

However, the sanctions against Russia prevented JP Morgan Chase from accepting payments from the holding company, breaching the agreement, and the bank filed a legal claim to have the vessel seized and sold at auction.

Other superyachts belonging to Russian elites have been detained all over the world — including the Amadea, which was seized in Fiji at the request of the United States in May. That $300 million yacht belonged to Suleiman Kerimov, a Russian gold producer worth over $12 billion, according to Forbes .

The fate of the Amadea is uncertain, however; it, too, could be sold to the highest bidder, which would be in line with President Biden's aims to hold Russian oligarchs accountable for their role in the invasion and, potentially, use the proceeds to aid Ukraine.

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Seizing an Oligarch’s Assets Is One Thing. Giving Them to Ukraine Is Another.

It could take years for Russian assets seized by the United States to be permanently confiscated and sold to benefit the Ukrainian people. The Biden administration wants to speed up the process.

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By Matthew Goldstein

The U.S. government was so pleased with its swift seizure of a Russian oligarch’s 255-foot yacht on the Mediterranean island of Majorca last month that it posted a video on YouTube of the moment F.B.I. agents and Spanish authorities clambered up the gangplank. The $90 million yacht owned by Viktor Vekselberg, called the Tango, was the government’s first big prize in a campaign against billionaires with close ties to the Kremlin.

The Tango is just a sliver of the $1 billion in yachts, planes and artwork — not to mention hundreds of millions in cash — that the United States has identified as belonging to wealthy allies of Russia’s president, Vladimir V. Putin, since the invasion of Ukraine. U.S. Magistrate Judge Zia M. Faruqui, who approved the seizure, called the pursuit of the yacht by a new Justice Department team called task force kleptocapture “just the beginning of the reckoning that awaits those who would facilitate Putin’s atrocities.”

The reckoning may take a while.

Seizing assets, whether a yacht or a bank account, is the easy part. To permanently confiscate them, the government must usually navigate a potentially cumbersome process known as civil forfeiture, which requires proving to a judge that the assets were obtained from the proceeds of a crime or through money laundering. Only then does the government actually own the assets, and have the power to liquidate them.

All that can take years, especially if the former owner is inclined to fight the forfeiture action in court.

Hoping to speed things up — and quickly get the proceeds from seized assets turned over to the Ukrainian government — the White House announced a plan last week that would make it easier for U.S. authorities to go after some oligarch assets through an administrative procedure led by the Treasury Department. Although it has not provided details of its plan, administration officials said the new procedure will provide adequate due process and allow for an “expedited” review by a federal court.

The White House proposal would significantly change the way the government handles high-dollar asset seizures. Generally, administrative forfeiture is used in lower-profile cases, intended for assets worth $500,000 or less. Such efforts are not really designed for luxury homes or massive yachts, let alone the huge sums of money that wealthy Russians are believed to have stashed away in U.S. bank accounts or invested with hedge funds and private equity firms.

“The idea of a yacht or jet valued in the hundreds of millions seized and liquidated administratively is new territory,” said Franklin Monsour Jr., a former federal prosecutor and a white collar defense lawyer with Orrick in New York.

Mr. Monsour said the administration and Congress may be banking that many Russian oligarchs will not muster a legal challenge to a new, expedited process because that would risk subjecting themselves to U.S. jurisdiction.

“It will likely be without challenge,” he said. “And the government knows that.”

Even if prosecutors are forced to proceed in some cases through the more typical civil forfeiture process, the litigation might go faster than normal for that same reason, Mr. Monsour said.

There are indications the pace of seizures is picking up. On Thursday, prosecutors said that authorities in Fiji working with the task force seized a $300 million mega yacht belonging to Suleiman Kerimov, a Russian gold magnate. But in a sign the task force may be unwilling in some cases to expose its tradecraft in tracking down assets, the 24-page affidavit presented to a federal judge in support of the seizure was heavily redacted.

The more pricey assets the government seizes, the more reason it has to speed up the forfeiture process: Luxury property must be properly maintained, otherwise their value will drop before they can be sold off to someone else in the small pool of people who can afford them.

“For yachts that are languishing in ports, there will be assets spent to maintain the vehicles,” said Daniel Tannebaum, an expert on financial crimes at the consulting firm Oliver Wyman and former Treasury official. “Some of these assets can sit for an extremely long time.”

But authorities in the U.S. are looking to do more than just strip oligarchs of their prized possessions. Elizabeth Rosenberg, assistant secretary for terrorist financing and financial crimes at Treasury, said one goal is to “undermine the financial architecture that Russia uses to move money.”

Over the years, Russia and its oligarchs have become skilled at using a parade of shell companies in places like the British Virgin Islands to move money from Cyprus to the Cayman Islands to Jersey, in the Channel Islands, all places with a history of being seen by investors as tax havens. The task force will be looking for evidence of oligarchs taking steps to illegally evade sanctions by surreptitiously transferring money and property to an unsanctioned person or business entity.

Just last month, federal prosecutors in Manhattan filed criminal charges against Konstantin Malofeyev for illegally transferring $10 million from a U.S. bank to a business associate in Greece. Mr. Malofeyev, who recently described Russia’s invasion of Ukraine as a “holy war,” was the subject of a sanctions order by the Treasury Department in 2014 after Russia’s invasion of Crimea, a part of Ukraine that it ultimately annexed.

In October, federal agents raided a mansion belonging to Russian billionaire Oleg Deripaska in Washington and seized a wide array of assets including a Diego Rivera painting. Authorities took action in response to suspicions that Mr. Deripaska had been trying to evade sanctions by moving some of his money around, Bloomberg reported last month.

U.S. authorities have pursued assets belonging to Mr. Deripaska, an industrialist with close ties to Mr. Putin, since a sanction order in 2018 that was partly in response to Russia’s meddling in the 2016 presidential election. A year later, Mr. Deripaska sued the U.S. government, claiming that the sanctions designation was based on rumor and had rendered him “radioactive” in the business community. Six weeks ago, a federal appellate court rejected his claims .

Since Russian forces invaded Ukraine in February, the Treasury Department has imposed sanctions on more than 530 well-connected Russians. Andrew Adams, the federal prosecutor directing the new kleptocapture task force, said much of his team’s early work has involved “unprecedented” sharing of information about those individuals with U.S. financial firms, Treasury officials and overseas law enforcement groups.

Even without taking possession of an asset, the task force can make it difficult for the owner to make use of it, said Mr. Adams, a veteran federal prosecutor in Manhattan who has focused on money laundering and asset forfeiture cases.

“In the past, I would consider a win to be getting a conviction,” Mr. Adams said. “Now it could be getting an insurance company to cancel policy coverage for an oligarch’s yacht.”

Although it’s possible for the government to seize assets as part of a criminal case, Mr. Adams said, the government was unlikely to take that route. Doing so would require the arrest and conviction of their owners — an even more daunting process than the civil process or the expedited administrative procedure that the White House is considering.

But even the civil forfeiture process requires the government to show evidence of criminal conduct.

In approving the seizure of the Tango, Judge Faruqui said federal authorities had shown probable cause that Mr. Vekselberg had purchased the yacht — held through a series of shell companies — with “illicit proceeds and laundered funds.” Permanent confiscation will require prosecutors to establish that Mr. Vekselberg actually committed bank fraud, money laundering or some other crime.

Although the United States imposed sanctions on wealthy Russians soon after the invasion, global efforts to seize their assets have mostly played out in Europe and the Caribbean.

The European Union has frozen about $30 billion assets traced to Russian oligarchs since February. A few weeks ago, British officials said they had frozen some $13 billion in assets tied to just one of them: Roman Abramovich. Mr. Abramovich, one of Russia’s wealthiest men and the longtime owner of London’s Chelsea Football Club, has faced significant pressure from British officials. He agreed to part with the team in March as officials were moving to impose sanctions, and the club said on Friday that it had accepted a $3 billion bid from a consortium of buyers. The proceeds from the sale — the highest price in history for a sports team — will be placed in a frozen British bank account.

Mr. Abramovich, who has invested billions of dollars with offshore funds managed by U.S. firms and has an interest in several steel mills in the United States, has not been sanctioned by American officials, in part because he has served as an intermediary in negotiations between Ukraine and Russia . Mr. Adams, the leader of the kleptocapture task force, declined to discuss the matter.

But he did offer an explanation for why the Russian oligarchs his team is focused on seem to have fewer assets in the United States than in other countries: The sanctions that Treasury imposed following Russia’s invasion of Crimea seven years ago scared some away.

“We have had sanctions in place since 2014,” said Mr. Adams. “We have not been a friendly country to park your money in.”

Matthew Goldstein covers Wall Street and white collar crime and housing issues. More about Matthew Goldstein

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Every Russian Oligarch Yacht Seized So Far—In Pictures

Before the invasion of Ukraine, the world was a playground for the Russian mega-rich.

Now, Russian oligarchs are struggling to hold on to their wealth, as their private jets and superyachts get seized and their properties impounded as a result of the heavy sanctions much of the world has imposed on the circle of billionaires around Vladimir Putin .

Since the European Union started imposing sanctions on an increasing number of Russian oligarchs, the list of luxury superyachts owned by Russian billionaires seized by authorities has steadily kept on growing.

Here's a breakdown.

On March 2, French authorities seized a yacht they said belonged to Rosneft's boss Igor Sechin in the Mediterranean port of La Ciotat.

The owner of Amore Vero wasn't formally Sechin, but French authorities said they found him to be the main shareholder.

On the same day, news spread that German authorities had seized a luxury yacht owned by Russian billionaire Alisher Usmanov. But German officials denied that the Dilbar , a $600 million yacht named after the billionaire's mother, had been seized in Hamburg.

The yacht, over 490 feet long and boasting an 80-foot swimming pool, two helipads and a garden, is now simply blocked in the northern port and is not allowed to leave.

Usmanov is one of the richest men in Russia and the world, with an estimated worth of $14.2 billion. The European Union has frozen his assets and described him as "pro-Kremlin oligarch with particularly close ties to Russian President Vladimir Putin."

On March 14 in Barcelona, Spanish police seized a $140 million yacht belonging to Sergei Chemezov, a former KGB officer who now heads the state-owned defense conglomerate Rostec. Following the seizure, Spanish Prime Minister Pedro Sanchez promised "there will be more."

The Valerie , a 280-foot yacht, is technically registered to Chemezov's stepdaughter Anastasia Ignatova. She is under U.S. sanctions, as is Chemezov and his wife.

The next day, Spanish authorities seized Lady Anastasia , reportedly owned by Alexander Mikheyev, in Mallorca. Mikheyev, director of Russian arms exporter Rosoboronexport, is under EU sanctions.

A day later, Spain seized another yacht believed to belong to Sechin, the 440-foot-long Crescent , in the port of Tarragona in Catalonia.

Since the beginning of March, Italy has seized three yachts belonging to Russian oligarchs.

Lady M , owned by steel magnate Alexey Mordashov, Russia's richest man, was seized in the port of Imperia on the same day as Lena , belonging to oil and gas mogul Gennady Timchenko, was seized in the port of Sanremo.

Lady M , formally registered in the Cayman Islands, has been docked in Imperia since January. The yacht is equipped with a beauty salon and a helicopter pad.

Lena , registered in the British Virgin Islands, has been in Sanremo since November 2021.

On March 12, Italian authorities seized Andrey Melnichenko's Sailing Yacht A , a $580 million yacht docked at the port of Trieste. Coal and fertilizer magnate Melnichenko was sanctioned by the EU on March 9.

The Ragnar , another superyacht owned by Russian oligarch and former KGB agent Vladimir Strzhalkovsky, wasn't confiscated, but it's stuck in Norway because nobody will sell it fuel to leave.

According to Croatian media reports, Viktor Medvedchuk's 300-foot mega yacht, The Royal Romance, was seized in the bay of Rijeka on Wednesday. Medvedchuk is leader of Ukraine's main pro-Russia party.

More yachts owned by Russian oligarchs and currently docked around Europe could yet be seized, as not all billionaires have been sanctioned by the EU and the ownership of some yachts is yet to be determined.

Those Russian oligarchs whose yachts haven't been seized are scrambling to take them far away from the grasp of European authorities, although they're running out of safe havens to hide their luxury vessels.

At least five Russian billionaires have moved their yachts to the Maldives as the EU imposed sanctions, ship-tracking data has shown. In early March, five superyachts were reportedly harbored in the Maldives, which doesn't have an extradition treaty with the U.S.

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A massive $325 million superyacht owned by a Russian oligarch — and seized on behalf of the United States last month — has made its way across the Pacific and into American custody.

“After a transpacific journey of over 5,000 miles, the Amadea has safely docked in a port within the United States, and will remain in the custody of the U.S. government, pending its anticipated forfeiture and sale,” the Department of Justice said in a statement.

The Amadea, a 384 foot behemoth topped with four massive radar domes came into San Diego Bay Monday flying the American flag.

According to the DOJ, prior to its seizure the ship was owned by Suleiman Kerimov, an alleged money launderer sanctioned by the US in 2018 over the Russian annexation of Crimea.

The ship was seized last month by Task Force KleptoCapture , a DOJ team launched in March to seize the assets of Kremlin allies and Russian elites in an effort to pressure Moscow to end the war in Ukraine.

A legal battle ensued, however, as an attorney for the company that owns the vessel — Millemarin Investments — argued that the Amadea was actually the property of a different wealthy Russian, one who was not under US sanction .

US officials argued in Fijian court that that Russian, Eduard Khudainatov, was merely the owner on paper — and that he is similarly the “paper owner” of a yacht believed to truly belong to Russian President Vladimir Putin.

The US questioned how Khudainatov could afford some $1 billion in boats.

“The fact that Khudainatov is being held out as the owner of two of the largest superyachts on record, both linked to sanctioned individuals, suggests that Khudainatov is being used as a clean, unsanctioned straw owner to conceal the true beneficial owners,” the FBI wrote in a court affidavit.

Ultimately, the Fijian court ruled in the DOJ’s favor. The Amadea made one stop in Honolulu, according to American authorities, before sailing for San Diego.

With Post wires

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Billionaire Eric Schmidt just paid $68 million for a Russian oligarch’s sanctioned superyacht that features a helipad and baby grand piano

Former Google CEO Eric Schmidt bought the Alfa Nero superyacht that was ditched in Antigua in March 2022 after Russian troops invaded Ukraine.

The billionaire “won the auction this morning in a fully transparent process,” buying the vessel for $67.6 million, according to Sir Ronald Sanders, Antigua’s ambassador to the US. 

The 267-foot vessel, complete with a baby grand piano and a swimming pool that turns into a helipad, was abandoned in Antigua’s Falmouth Harbour after the US Treasury sanctioned Russian fertilizer billionaire Andrey Guryev. The department last year said he bought the Alfa Nero in 2014 for $120 million — which he denies.

Schmidt’s foundation didn’t respond to a request for comment.

The Alfa Nero was auctioned Friday even after Guryev’s daughter filed a last-minute injunction claiming the yacht was hers, Antigua Port Manager Darwin Telemaque said in an interview. 

Some of the proceeds will cover maintenance and other bills that the Alfa Nero has piled up while in the harbor, with crew expenses alone running $112,000 a month. Telemaque said the sale price would cover “all liabilities.”

Since Russia’s invasion in February 2022, the US and its allies have imposed sanctions on many of the country’s wealthiest people, causing more than two dozen superyachts worth about $4 billion to be frozen in ports around the world.

Schmidt, who served as Google’s chief executive for about a decade, has an estimated net worth of $25 billion, according to the Bloomberg Billionaires Index. Two years ago he was  named  chair of the Broad Institute, a research organization based in Cambridge, Massachusetts.

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Superyacht seized by U.S. from Russian billionaire arrives in San Diego Bay

June 27, 2022 / 3:40 PM EDT / CBS/AP

A $325 million superyacht seized by the United States from a sanctioned Russian oligarch arrived in San Diego Bay on Monday.

The 348-foot-long (106-meter-long) Amadea flew an American flag as it sailed past the retired aircraft carrier USS Midway and under the Coronado Bridge.

"After a transpacific journey of over 5,000 miles (8,047 kilometers), the Amadea has safely docked in a port within the United States, and will remain in the custody of the U.S. government, pending its anticipated forfeiture and sale," the Department of Justice said in a statement.

The FBI linked the Amadea to the Russian oligarch Suleiman Kerimov, and the vessel became a target of Task Force KleptoCapture, launched in March to seize the assets of Russian oligarchs to put pressure on Russia to end the war in Ukraine. The U.S. said Kerimov secretly bought the vessel last year through various shell companies.

But Justice Department  officials had been stymied  by a legal effort to contest the American seizure warrant and by a yacht crew that refused to sail for the U.S. American officials won a legal battle in Fiji to take the Cayman Islands-flagged superyacht earlier this month. 

The Amadea made a stop in Honolulu Harbor en route to the U.S. mainland. The Amadea boasts  luxury features  such as a helipad, mosaic-tiled pool, lobster tank and a pizza oven, nestled in a décor of "delicate marble and stones" and "precious woods and delicate silk fabrics," according to court documents.

"The successful seizure and transport of Amadea would not have been possible without extraordinary cooperation from our foreign partners in the global effort to enforce U.S. sanctions imposed in response to Russia's unprovoked and unjustified war in Ukraine," the Justice Department said.

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U.S. seizes mega yacht owned by oligarch with close ties to Putin

PALMA DE MALLORCA, Spain — The U.S. government seized a mega yacht in Spain owned by an oligarch with close ties to the Russian president on Monday, the first in the government’s sanctions enforcement initiative to “seize and freeze” giant boats and other pricey assets of Russian elites .

Spain’s Civil Guard and U.S. federal agents descended on the yacht at the Marina Real in the port of Palma de Mallorca, the capital of Spain’s Balearic Islands in the Mediterranean Sea. Associated Press reporters at the scene saw police going in and out of the boat on Monday morning.

The seizure was confirmed by two people familiar with the matter. The people could not discuss the matter publicly and spoke to AP on condition of anonymity. A Spanish Civil Guard spokesman confirmed that officers from the Spanish police body and from the FBI were at the marina searching the vessel Monday morning and said further details would be released later.

A Civil Guard source told The Associated Press that the immobilized yacht is Tango, a 78-meter (254-feet) vessel that carries Cook Islands flag and that  Superyachtfan.com , a specialized website that tracks the world’s largest and most exclusive recreational boats, values at $120 million. The source was also not authorized to be named in media reports and spoke to AP on condition of anonymity.

The yacht is among the assets linked to Viktor Vekselberg, a billionaire and close ally of Russian President Vladimir Putin who heads the Moscow-based Renova Group, a conglomerate encompassing metals, mining, tech and other assets, according to U.S. Treasury Department documents. All of Vekselberg’s assets in the U.S. are frozen and U.S. companies are forbidden from doing business with him and his entities.

The move is the first time the U.S. government has seized an oligarch’s yacht since Attorney General Merrick Garland and Treasury Secretary Janet Yellen assembled a task force known as REPO — short for Russian Elites, Proxies and Oligarchs — as an effort to enforce sanctions after Russia invaded Ukraine in late February.

Vekselberg has long had ties to the U.S. including a green card he once held and homes in New York and Connecticut. The Ukrainian-born businessman built his fortune by investing in the aluminum and oil industries in the post-Soviet era.

Vekselberg was also questioned in special counsel Robert Mueller’s investigation into Russian interference in the 2016 U.S. presidential election and has worked closely with his American cousin, Andrew Intrater, who heads the New York investment management firm Columbus Nova.

Vekselberg and Intrater were thrust into the spotlight in the Mueller probe after the attorney for adult film star Stormy Daniels released a memo that claimed $500,000 in hush money was routed through Columbus Nova to a shell company set up by Donald Trump’s personal attorney, Michael Cohen. Columbus Nova denied that Vekselberg played any role in its payments to Cohen.

Vekselberg and Intrater met with Cohen at Trump Tower, one of several meetings between members of Trump’s inner circle and high-level Russians during the 2016 campaign and transition.

The 64-year-old mogul founded Renova Group more than three decades ago. The group holds the largest stake in United Co. Rusal, Russia’s biggest aluminum producer, among other investments.

Vekselberg was first sanctioned by the U.S. in 2018, and again in March of this year, shortly after the invasion of Ukraine began. Vekselberg has also been sanctioned by authorities in the United Kingdom.

The U.S. Justice Department has also launched a sanctions enforcement task force known as KleptoCapture , which also aims to enforce financial restrictions in the U.S. imposed on Russia and its billionaires, working with the FBI, Treasury and other federal agencies. That task force will also target financial institutions and entities that have helped oligarchs move money to dodge sanctions.

The White House has said that many allied countries, including German, the U.K, France, Italy and others are involved in trying to collect and share information against Russians targeted for sanctions. In his State of the Union address, President Joe Biden warned oligarch that the U.S. and European allies would “find and seize your yachts, your luxury apartments, your private jets.”

“We are coming for your ill-begotten gains,” he said.

Wednesday’s capture is not the first time Spanish authorities have been involved in the seizure of a Russian oligarch’s superyacht. Officials there said they had seized a vessel valued at over $140 million owned by the CEO of a state-owned defense conglomerate and a close Putin ally.

French authorities have also seized superyachts, including one believed to belong to Igor Sechin, a Putin ally who runs Russian oil giant Rosneft, which has been on the U.S. sanctions list since Russia annexed Crimea in 2014.

Italy has also seized several yachts and other assets.

Italian financial police moved quickly seizing the superyacht “Lena” belonging to Gennady Timchenko, an oligarch close to Putin, in the port of San Remo; the 65-meter (215-foot) “Lady M” owned by Alexei Mordashov in nearby Imperia, featuring six suites and estimated to be worth 65 million euros; as well as villas in Tuscany and Como, according to government officials.

Para reported from Madrid and Balsamo reported from Washington.

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Superyacht Seized From Sanctioned Russian Billionaire Sells for Undisclosed Amount

The Axioma becomes the first seized Russian yacht to be sold on the open market.

mikurubaeahina

reimuracing

Russian billionaire Dmitry Pumpyansky is really just your average oligarch. He's tied to a $2 billion dollar net worth, alleged close ties to Vladimir Putin , a private art gallery , and of course, a 236-foot superyacht with a dozen bedrooms on board. Or at least he did own the yacht, until earlier this year when J.P. Morgan seized it , followed by then auctioning it off on Tuesday.

The reason for the seizure is directly due to international sanctions on Russian oligarchs in the wake of Russia's invasion of Ukraine . Pumpyansky, who has been identified by the U.S. government as an oligarch in the 2017 Countering America's Adversaries Through Sanctions Act, served as the guarantor of a $20 million loan with JP Morgan when the invasion began. He, along with many other Russian billionaires, was sanctioned shortly after the invasion . As a result, and according to court papers obtained by Reuters, the sanctions ultimately "constitut[e] an event of default," as it is now legally impossible for Pumpyansky to pay back the loan. As collateral for the defaulted loan, JP Morgan seized the superyacht and brought it to public auction at the Gibraltar Admiralty Court (where the ship was impounded). It's the first seized Russian yacht actually sold on the open market, rather than just confiscated, since sanctions began earlier this year.

The yacht itself is the Axioma, a 236-foot-long vessel launched in 2013 that was formerly available as a charter ship. As the listing and photos highlight, it has a beach-house style interior designed by Alberto Pinto , and it features a 3D cinema room, multiple jacuzzis, a steam room and sauna, a gym, onboard jet-skis, and an inflatable water slide that stretches from the sun deck to the water itself. It was nominated as a finalist for several 200+ foot yacht awards, which I did not know existed.

The original cost of the yacht was $75 million (and it was going for nearly $550,000 a week during peak season as a charter vessel). According to the Guardian , which spoke with the broker of the auction, there was an "unexpected late surge" of interest from potential buyers who wanted to pick up the Axioma as a "bargain" at auction. According to the broker, 30 people flew into Gibraltar where the vessel was docked to check it out in person before it was sold Tuesday. It's unknown if anyone did actually get a deal on the Axioma, as it was sold at a sealed-bid auction, but I'm going to wager a guess that if you have to ask, you probably couldn't afford it anyway.

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Oligarch’s $200m superyacht to be sold at auction to benefit Ukraine

Ukraine says Croatian court has cleared way for sale of Viktor Medvedchuk’s Royal Romance yacht

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A $200m (£163m) superyacht owned by Viktor Medvedchuk, an oligarch and friend of Vladimir Putin who is under sanctions, is to be sold at auction after its seizure in Croatia earlier this year.

The Ukrainian government said a Croatian court had ruled that Medvedchuk’s 92.5-metre Royal Romance yacht should be transferred to the Ukrainian Asset Recovery and Management Agency (Arma), which said it would “preserve the economic value by selling it at auction”.

It would be first such sale on behalf of the people of Ukraine since western governments imposed restrictions on the assets of hundreds of oligarchs after Russia’s invasion of Ukraine in February.

Medvedchuk, 68, a pro-Kremlin Ukrainian politician, was arrested in Ukraine in April and handed over to Russia in a prisoner exchange in September. He is often referred to as the “dark prince” of Ukrainian politics , and Putin is godfather to his daughter Daria.

The Arma, a special branch of the Ukrainian government tasked with “finding, tracing and management of assets derived from corruption”, said its agents had flown to Croatia and “inspected the arrested yacht belonging to the family members of a people’s deputy and one of the leaders of a political force banned in Ukraine”.

It said: “Arma searched for the specified asset within the framework of the criminal proceedings and subsequently after imposing the arrest received the elite property to preserve the economic value by selling it at auctions.”

Croatian police raided the yacht last month on behalf of the FBI, according to the Croatian newspaper Jutarnji list . It reported that a court in Split granted a search warrant request from the US justice department on 15 November, and confirmed that the search took place on 19 November. The judge Dinko Mešin is said to have told the newspaper that the search warrant named Medvedchuk and his wife, Oksana Marchenko, in connection with alleged money laundering.

Royal Romance , which was built by the Dutch superyacht contractor Feadship in 2005, has cabins for 14 guests and space for 21 crew, as well as a 4-metre-wide swimming pool with “flowing waterfall cascading over the stern”.

In September, a 72.5-metre superyacht seized from a Russian oligarch under sanctions, Dmitry Pumpyansky, was sold at auction to an undisclosed buyer for $37.5m, in the first sale of its kind since Russia invaded Ukraine.

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The yacht, which had a swimming pool, a 3D cinema room, a gym, a whirlpool bath and a fully equipped spa – was not sold for the benefit of the Ukrainian people but for the US investment bank JP Morgan , which claimed Pumpyansky owed it €20.5m.

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Why the U.S. put a $1 million bounty on a Russian yacht’s alleged manager

On Sept. 3, 2020, the staff of a $90 million yacht placed an order with a U.S. company for a set of luxury bathrobes that came to $2,624.35.

For roughly two years before that, according to federal prosecutors, the yacht’s management had been falsely claiming it was working for a boat named “Fanta.” But the luxury bathrobes came embroidered with a monogram that, prosecutors said, revealed the yacht’s true identity: “Tango.”

That was a problem, officials say in court papers, because Tango was owned by a Russian billionaire under U.S. sanctions, and doing business on his behalf violated federal law.

Late last month, U.S. authorities unveiled a $1 million reward for information leading to the arrest and or conviction of the man they say was running the yacht staff and orchestrated the deception with the robes — Vladislav Osipov, 52, a Swiss-based businessman from Russia. In a new indictment , federal prosecutors say Osipov misled U.S. banks and companies into doing business with the Tango yacht despite the sanctions on the Russian owner, whom the Justice Department has identified as billionaire Viktor Vekselberg .

Osipov has denied the allegations. Osipov’s attorney has said that the government has failed to demonstrate that Vekselberg owned the yacht, and that its management was therefore not a sanctions violation.

The reward offer for Osipov reflects the latest stage in the evolution of the West’s broader financial war against Russia two years into the war in Ukraine, as the United States and its allies increasingly target intermediaries accused of enabling Russian oligarchs to circumvent sanctions.

Many Russians close to President Vladimir Putin have been under sanctions dating to 2014, when Russia seized Crimea from Ukraine and sent proxy forces into that country’s eastern Donbas region. When Russia invaded Ukraine in 2022, President Biden vowed to deal a “crushing blow” with a barrage of new sanctions on financial institutions, industries, business executives and others tied to the Kremlin. But roughly two years later, Russia’s economy has proved surprisingly resilient after the nation poured tens of billions of dollars into ramping up its military industry. Moscow has also worked around the sanctions, finding new third parties to supply it with critical military and industrial hardware, as well as countries beyond Europe to buy its oil.

Now, the West is trying to increase the reach of its sanctions by digging deeper into Russian supply chains. Late last month, the Treasury Department announced more than 500 new sanctions targeting Russia , primarily on military and industrial suppliers. The Justice Department also announced charges against two U.S.-based “facilitators” of a Russian state banker who is under sanction, as well as the guilty plea of a dual national based in Atlanta who was accused of laundering $150 million through bank accounts and shell companies on behalf of Russian clients.

Prioritizing criminal charges against — and the arrests of — Western employees of Russia’s elites represents a new escalation of the U.S. financial war against Putin, experts say. One Moscow businessman, speaking on the condition of anonymity for fear of retribution, said many influential Russians are concerned about the arrest of two associates of Andrey Kostin, the head of VTB, Russia’s second-biggest state bank. These associates, Vadim Wolfson and Gannon Bond, were charged with helping Kostin evade sanctions by maintaining a $12 million property in Aspen, Colo., for Kostin’s benefit while concealing his ownership. Kostin has said that the charges of sanctions evasion against him are “unfounded” and that he has not violated any laws . Bond has pleaded not guilty; Wolfson hasn’t made an initial court appearance yet.

Wolfson, also known as Vadim Belyaev, had been a Russian billionaire until the Russian government took over his bank in 2017. Bond, 49, is a U.S. citizen from Edgewater, N.J. For all Russians living abroad and working with people in Russia, the threat of criminal charges is a much more worrying prospect than the sanctions imposed by the Treasury Department last month against hundreds of individuals and entities, the businessman said, in part because sanctions are far easier to dodge than criminal charges.

“What you have seen through today’s public announcements are our efforts at really targeting the facilitators who possess the requisite skill set, access, connections that allow the Russian war machine [and] the Russian elites to continually have access to Western services and Western goods,” David Lim, co-director of the Justice Department’s KleptoCapture task force, which is tasked with enforcing U.S. sanctions over Russia’s invasion of Ukraine, told reporters last month.

Thad McBride, an international trade partner at the law firm Bass Berry & Sims, said the crackdown on intermediaries reflected the natural evolution of the U.S. sanctions campaign in response to Russian adjustments.

“It seems to me they have gone through a comprehensive list of the oligarchs, and you can debate whether or not it’s had a meaningful impact on the Russian war effort,” McBride said. “Because they’re getting smarter about who’s who, they’re finding other people who play meaningful roles in these transactions, even though they’re not showing up in the headlines.”

The charges against Osipov related to his alleged management of the Tango yacht illustrate the mounting potential consequences for people in Europe and the United States who attempt to do business with Russians targeted by Western allies, as well as the opaque structures allegedly employed by those seeking to evade sanctions.

With a net worth estimated by Forbes in 2021 at $9 billion, Vekselberg, 66, has long drawn scrutiny from the West — and sought to safeguard his wealth. He made his initial fortune in aluminum and oil in Russia’s privatization of the 1990s and then expanded into industrial and financial assets in Europe, the United States and Africa, with Putin’s blessing. In addition to the yacht, federal prosecutors say, Vekselberg acquired $75 million worth of properties, including apartments on New York’s Park Avenue and an estate in the Long Island town of Southampton.

Vekselberg, who declined to comment for this article, has not been criminally charged by the Justice Department. In a 2019 interview with the Financial Times, he denounced the sanctions as arbitrary and harmful for international business, saying he had been targeted just because he was Russian and rich and knows Putin.

In April 2018, the Treasury Department under the Trump administration sanctioned Vekselberg and six other Russian oligarchs as part of broader financial penalties over the Kremlin’s invasion of Crimea, support for President Bashar al-Assad in Syria and interference in the 2016 U.S. presidential election. Vekselberg was also targeted for his work for the Kremlin as chairman of the Skolkovo Foundation, an attempt to create Russia’s version of the Silicon Valley — evidence that appeared to undermine the Russian businessman’s claims that he operated independently of the Kremlin.

But with Vekselberg’s payments monitored by U.S. banks, according to the federal indictment , Osipov used shell companies and intermediaries to avert the bite of sanctions. Vekselberg kept other major assets out of the reach of U.S. authorities by making use of the Treasury Department’s 50 percent ownership rule, which stipulates that it is illegal to transact with firms only if an owner under sanction controls more than 50 percent of the business.

For example, a month after Treasury imposed sanctions on Vekselberg in April 2018, his Renova Innovation Technologies sold its 48.5 percent stake in Swiss engineering giant Sulzer to Tiwel Holding AG, a group that is nevertheless still “beneficially owned” — meaning, owned in practice — by Vekselberg through Columbus Trust, a Cayman Islands trust, according to Sulzer’s corporate filing. Vekselberg’s longtime right-hand man at Renova, Alexei Moskov, replaced one of Vekselberg’s direct representatives on the board. Moskov told The Washington Post that he stepped down from all his executive positions at Renova Group in 2018 after U.S. sanctions were first imposed and from that moment ceased to be Vekselberg’s employee.

The attempts to circumvent the sanctions appear to have found some success in the U.S. legal system. Columbus Nova, a U.S.-based asset management fund controlling more than $100 million in assets in the U.S. financial and tech industry, is run by Vekselberg’s cousin, Andrew Intrater. The firm battled for more than two years to lift a freeze on Columbus Nova’s assets, imposed by Treasury’s Office of Foreign Assets Control because of the sanctions on Vekselberg, and won, reaching a settlement agreement with the Treasury Department. After renaming itself Sparrow Capital LLC, Columbus Nova successfully argued that Intrater — not Vekselberg — owns the fund. Intrater argued that the company was 100 percent owned by U.S. citizens and that no individual or entity under sanction held any interest in it. Intrater said Columbus Nova had earned fees for managing investment funds owned by Renova. He said he had repeatedly told Treasury he would not distribute any funds to Vekselberg.

Now Osipov, the alleged manager of Vekselberg’s $90 million yacht, is attempting a similar argument as U.S. authorities seek his arrest on charges of bank fraud, money laundering, conspiracy to defraud the United States, and violations of sanctions law.

The federal indictment states that the Tango was owned by a shell corporation registered in the British Virgin Islands that was in turn owned by several other companies. The Virgin Islands shell company, authorities say, was controlled by Osipov, who also served in senior roles for multiple companies controlled by Vekselberg. U.S. officials also say Vekselberg ultimately controlled the other companies that owned the Virgin Islands shell company.

According to the indictment, a Tango official instructed a boat management company in Palma de Mallorca, Spain, to use a false name for the yacht — “Fanta” — to disguise its true identity from U.S. financial institutions and firms, which try to avoid doing business with an entity or person under sanction.

Working at Osipov’s direction, according to the indictment, employees for Tango bought more than $8,000 worth of goods for the yacht that were unwittingly but illegally processed by U.S. firms and U.S. financial institutions, including navigation software, leather basket magazine holders provided by a bespoke silversmith, and web and computing services. The management company running Tango, run by Osipov, also paid invoices worth more than $180,000 to a U.S. internet service provider, federal prosecutors say.

The Tango was seized by the FBI and Spanish authorities in the Mediterranean not long after Russia invaded Ukraine in 2022, and Osipov was first indicted last year. The owner of the Spanish yacht management company hired by Osipov, Richard Masters, 52, of Britain, was criminally charged last year by federal prosecutors with conspiracy to defraud the United States and violating federal sanctions law. A request for comment sent to Masters’ firm was not returned.

But in recent court documents, Osipov’s attorney argues that the yacht was not more than 50 percent owned by Vekselberg, and that the government hasn’t demonstrated it was. Barry J. Pollack, an attorney at Harris, St. Laurent and Wechsler, also says the government never warned Osipov of its novel and “unconstitutional” application of federal sanctions law.

“The government points to no precedent that supports its extraordinary interpretation and cites no authority that allows the traditional rules of statutory construction to be turned on their head,” Pollack wrote in a defense filing. The filing adds: “[Osipov] is not a fugitive because he did not engage in any of the allegedly criminal conduct while in the United States, has never resided in the United States, did not flee from the United States, and has not concealed himself.”

Still, the State Department’s Transnational Organized Crime Rewards Program has said it will provide up to $1 million for information leading to Osipov’s arrest, warning that he may visit Herrliberg, Switzerland; Majorca, Spain; or Moscow.

The case demonstrates the extent of the U.S. commitment to tighten the screws on those seen as aiding Russian elites, even if they themselves are not closely tied to the Kremlin.

“When DOJ levels legal action against an individual or entity, they have quite a bit of evidence, especially because the threshold to press charges for money-laundering and sanctions evasion is so high,” said Kim Donovan, director of the Economic Statecraft Initiative within the Atlantic Council’s GeoEconomics Center. “We’ve had quite a bit of experience targeting Russia directly, and what you’re starting to see is the U.S. go after the facilitators enabling sanctions evasion. That’s where the U.S. is focusing its efforts right now.”

A Russian oligarch's megayacht seized by the US is costing taxpayers a fortune, and the government is desperate to sell

• A Russian oligarch's seized megayacht is costing US taxpayers $922,000 a month, a court filing says.
• Officials said last month it costs $600,000 — but there's also insurance and dry-docking fees.
• Another Russian billionaire is claiming ownership of the yacht and opposing attempts to sell it.

A Russian oligarch's megayacht is costing taxpayers almost $1 million a month after the government seized it, court filings say.

US officials say the $300-million Amadea is owned by Suleiman Kerimov , a sanctioned Russian billionaire. It has a helipad, a swimming pool, and a movie theater on board.

The 348-foot vessel was first seized by authorities in Fiji in April 2022. It's now docked in San Diego, but the government wants to sell it due to huge maintenance costs.

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Last month, an assistant chief in the US Marshals Service said the Amadea was costing the government about $600,000 a month .

That's made up of $360,000 for crew salaries; $75,000 for fuel; and $165,000 for maintenance, waste removal, food for the crew, and miscellaneous expenses.

But a Friday court filing seen by Business Insider says there are actually even more costs that bring the total monthly bill up to $922,000.

It costs $144,000 to insure the megayacht, and dry-docking fees of $178,000 a month, the filing says.

The legal battle over the Amadea involves another Russian billionaire, Eduard Khudainatov, who claims he, not Kerimov, is the owner of the yacht.

Lawyers for Khudainatov, who is not sanctioned, have objected to the government's attempts to sell the Amadea.

According to CNBC, which first reported on Friday's filing, Khudainatov has offered to reimburse the government for the $20 million it has already spent maintaining the yacht if it's returned to him.

However, as long as the government continues trying to sell the Amadea, he won't pay the costs, CNBC reported.

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Russian Oligarch’s Yacht Is Costing $1 Million a Month; Here’s Why US Is Struggling To Sell It

Eduard Khudainatov, one of Russia's oligarchs and the former CEO of Russia's state-owned oil company Rosneft, is hardly in the news. However, that changed when the US authorities identified him as the proxy owner of two mega-yachts -- the 459-foot Scheherazade, and the 348-foot Amadea.

The battle over the 348-foot Amadea began in April 2022 when the Department of Justice found that the mega-yacht was actually owned by sanctioned Russian gold mogul Suleiman Kerimov, and said that Khudainatov acted as a "clean, unsanctioned straw owner." Amadea was later seized by the US authorities from the Russian oligarch in Fiji.

Khudainatov appeared to own the ships on paper and concealed the true owners -- President Putin and Kerimov. The government mentioned that his disguised ownership of Amadea was made possible through shell companies and other owners. 

Now, the U.S. Department of Justice is seeking permission to sell the $230 million yacht Amadea, due to the "excessive costs" of maintenance and crew. The DOJ also mentions that Kerimov had been looking to sell Amadea for years.

"This is not a situation in which a court would be ordering the sale of a precious heirloom that a claimant desperately wishes to keep for sentimental reasons," the government said in filings.

The U.S. is currently spendng about $1 million per month as the maintenance cost for the mega-yacht. It reportedly takes $600,000 per month for running, $360,000 for the crew, $75,000 for fuel, and $165,000 for maintenance, which includes waste removal, food, and other expenses. They also pay $144,000 in monthly pro-rata insurance costs and special charges including dry-docking fees, at $178,000, bringing the cost of maintenance to a total of $922,000 to be precise, as per CNBC.

"It is 'excessive' for taxpayers to pay nearly a million dollars per month to maintain the Amadea when these expenses could be reduced to zero through interlocutory sale," the government said in recent court filings.

However, in recent court filings, Khudainatov’s attorneys have objected to the selling of the yacht, saying the sale could lead to a distressed sale price, and also that the maintenance cost was nothing considering the value of the yacht. 

The costs that the government is incurring shed light on the legal challenges of seizing as well as selling assets owned by Russian oligarchs after the country invaded Ukraine. Ursula von der Leyen, President of the European Commission, said that the EU really should use the profits from more than $200 billion of frozen Russian assets to fund Ukraine’s war effort. Her comment represents the collective sentiment and many wanted the yachts, private jets, and mansions of Russian billionaires frozen in the hope of putting pressure on the Russian President. 

As per CNBC, even if the yacht is sold , the proceeds will not go to the U.S. government, as the money will be held while Khudainatov and the government continue their battle in court. This luxury yacht featured a lobster tank, a hand-painted piano, a swimming pool as well as a huge helipad. It was built in 2017 by the German company Lurssen and is the 63rd-largest yacht in the world.

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Who's Paying for Russian Oligarch's Seized Yacht in San Diego Bay?

The amadea, which superyachttimes.com called the 63rd largest yacht in the world, tied up monday at naval base san diego, in national city, by eric s. page and mari payton • published june 28, 2022 • updated on june 28, 2022 at 2:11 pm.

Many San Diegans who saw the news about the Amadea — the $325 million seized Russian oligarch's yacht that docked in San Diego on Monday — may be wondering: Who's paying for that?

Imagine how much the fuel costs to sail it more than 5,000 miles from Fiji, where it was seized earlier this month, to San Diego? A local marine fuel dock quoted the following prices, if you're wondering: $7.40 for gas, $7.35 for diesel. According to SuperYachtTimes.com, the Amadea has a 392,000-liter fuel tank. That works out to about 103,555 gallons, so it could cost $766,307 or so just to fill up.

And then there are maintence costs on a 350-foot long yacht, which, you can be sure, are extensive and necessary — in fact, not undertaking such efforts can cause the vessel's value to decline if it deteriotes due to neglect.

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The Amadea carries a full complement of 36 crew, including the captain, according to SuperYachtTimes, but it won't need nearly that many once she tied up at Naval Base San Diego in National City. Nevertheless, someone will be monitoring the yacht and conducting the maintenance.

According to the U.S. Department of Justice, the yacht was bought with what it calls "dirty money," and, as such, some may be relieved to hear, will be sold to the highest bidder. Presumably, the associated post-seizure costs accrued after its seizure will be coming off the top of the sale price. Until then, the Amadea, which SuperYachtTimes called the 63rd larges yacht in the world, will resume in the custody of the U.S.

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Officials with the DOJ said the Amadea, which was seized in connection to the department's KleptoCapture campaign undertaken in the wake of the invasion of Ukraine by Russia, was owned by Suleiman Kerimov a Russian billionaire.

After the yacht arrived in San Diego, John Kirby, a former federal prosecutor, told NBC 7 that he thinks the U.S. government hopes moves like the Amadea's seizure are efforts to apply pressure to Russian president Vladimir Putin.

Earlier this month, Deputy U.S. Attorney General Lisa O. Monaco said, regarding the Amadea, “The department had its eyes on every yacht purchased with dirty money. This yacht seizure should tell every corrupt Russian oligarch that they cannot hide — not even in the remotest part of the world. We will use every means of enforcing the sanctions imposed in response to Russia’s unprovoked and unjustified war in Ukraine.”

The court ruling represented a significant victory for the U.S. as it encounters obstacles in its attempts to seize the assets of Russian oligarchs around the world. While those efforts are welcomed by many who oppose the war in Ukraine, some actions have tested the limits of American jurisdiction abroad.

The United States wasted no time in taking command of the after a Fiji court ruled in its favor and sailed the ship away from the South Pacific nation just hours after the ruling.

"If you could say or somehow prove that this boat … that the oligarch had the money for this boat because he bribed Vladimir Putin, that is public corruption," Kirby said. "It’s a crime even when it takes place outside the United States. The United States can still act upon it."

According the website, the Amadea is not currently for sale, but that may soon change. Until then, you can "shop" for other eye-popping, wallet-busting boats here .

The Associated Press contributed to this report — Ed.

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