US pursues forfeiture of Russian oligarch's $300 million superyacht

The United States has initiated legal proceedings to secure the forfeiture of a $300 million superyacht allegedly controlled by Russian billionaire oligarch Suleiman Kerimov, who is subject to US sanctions.

According to a report by Reuters, the 348-foot (106-metre) Amadea yacht was confiscated by Fijian authorities in May 2022, acting on a US warrant. This move coincided with Washington's efforts to strengthen sanctions enforcement against individuals linked to Russian President Vladimir Putin, as a means to exert pressure on Moscow to end its conflict with Ukraine.

The filing of a complaint in a Manhattan federal court marks the commencement of a potentially protracted legal process. The United States aims to establish ownership of the yacht, which is currently harboured in San Diego, and subsequently auction it. The proceeds from the auction would then be directed toward Ukraine. Suleiman Kerimov, along with his family, holds assets valued at $10.7 billion, as per Forbes magazine.

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Kerimov amassed a significant portion of his wealth through his stake in the Russian gold producer, Polyus. He faced US Treasury Department sanctions in 2014 and 2018 in response to Russia's actions in Syria and Ukraine, which prohibited his access to the US financial system. In May 2023, Polyus was also subjected to sanctions, a move the company deemed unjustified.

The US Department of Justice, in its complaint on Monday, alleged that Kerimov acquired the Amadea in 2021, subsequently violating US sanctions by making over $1 million in maintenance payments through US financial institutions. The owners of the yacht will be given the opportunity to contest this claim in a court of law.

In a separate development, attorneys representing Millemarin Investments, a company asserting ownership of the Amadea, stated in a Fijian court that the yacht is owned not by Kerimov, but by former Rosneft chief Eduard Khudainatov, another Russian oligarch not subjected to sanctions. Khudainatov is not mentioned in the complaint filed on Monday.

US prosecutors contend that a transaction conducted on September 14, 2021, which transferred ownership of the Amadea from Millemarin to a newly established entity, Errigan Marine, was orchestrated to create the appearance that Evgeny Kochman, president of the sanctioned yacht brokerage, Imperial Yachts, was the yacht's owner. Prosecutors asserted that Kochman was merely a "straw owner."

As per Reuters, Imperial Yachts, in a statement, expressed its disagreement with the allegations made by the DOJ, emphasising that neither the company nor Kochman had engaged in any unlawful activities.

Khudainatov, on the other hand, initiated a lawsuit against the United States on Monday in a San Diego federal court to secure the release of the yacht. Reuters quoted Adam Ford, his attorney, as saying, "The Amadea was seized upon false premises driven by political motivation."

(With inputs from Reuters)

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