Fleeing sanctions, oligarchs seek safe ports for superyachts

Fleeing sanctions, oligarchs seek safe ports for superyachts

Fleeing sanctions, oligarchs seek safe ports for superyachts

The massive superyacht Dilbar stretches one-and-a-half football fields in length, about as long as a World War I dreadnaught. It boasts two helipads, berths for more than 130 people and a 25-meter swimming pool long enough to accommodate another whole superyacht.

Dilbar was launched in 2016 at a reported cost of more than $648 million. Five years on its purported owner, the Kremlin-aligned Russian oligarch Alisher Usmanov, was already dissatisfied and sent the vessel to a German shipyard last fall for a retrofit reportedly costing another couple hundred million dollars.

That’s where she lay in drydock on Thursday when the United States and European Union announced economic sanctions against Usmanov _ a metals magnate and early investor in Facebook _ over his ties to Russian President Vladimir Putin and in retaliation for the invasion of Ukraine.

“We are joining with our European allies to find and seize your yachts, your luxury apartments, your private jets,” President Joe Biden said during his State of the Union speech Tuesday night, addressing the oligarchs. “We are coming for your ill-begotten gains.”

But actually seizing the behemoth boats could prove challenging. Russian billionaires have had decades to shield their money and assets in the West from governments that might try to tax or seize them.

Several media outlets reported Wednesday that German authorities had impounded Dilbar. But a spokeswoman for Hamburg state’s economy ministry told The Associated Press no such action had yet been taken because it had been unable to establish ownership of the yacht, which is named for Usmanov’s mother.

Dilbar is flagged in the Cayman Islands and registered to a holding company in Malta, two secretive banking havens where the global ultra-rich often park their wealth.

Still, in the industry that caters to the exclusive club of billionaires and centimillionaires that can afford to buy, crew and maintain superyachts, it is often an open secret who owns what.

Working with the U.K.-based yacht valuation firm VesselsValue, The Associated Press compiled a list of 56 superyachts _ generally defined as luxury vessels exceeding 24 meters (79 feet) in length _ believed to be owned by a few dozen Kremlin-aligned oligarchs, seaborne assets with a combined market value estimated at more than $5.4 billion.

The AP then used two online services _ VesselFinder and MarineTraffic _ to plot the last known locations of the yachts as relayed by their onboard tracking beacons.

While many are still anchored at or near sun-splashed playgrounds in the Mediterranean and Caribbean, more than a dozen were underway or had already arrived in remote ports in small nations such as the Maldives and Montenegro, potentially beyond the reach of Western sanctions. Three are moored in Dubai, where many wealthy Russians have vacation homes.

Another three had gone dark, their transponders last pinging just outside the Bosporus in Turkey _ gateway to the Black Sea and the southern Russian ports of Sochi and Novorossiysk.

Graceful, a German-built Russian-flagged superyacht believed to belong to Putin, left a repair yard in Hamburg on Feb. 7, two weeks before Russia invaded Ukraine. It is now moored in the Russian Baltic port of Kaliningrad, beyond the reach of Western sanctions imposed against him this past week.

Some Russian oligarchs appear to have not gotten the memo to move their superyachts, despite weeks of public warnings of Putin’s planned invasion.
French authorities seized the superyacht Amore Vero on March 3 in the Mediterranean resort town of La Ciotat. The boat is 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.

The French Finance Ministry said in a statement that customs authorities boarded the 289-foot Amore Vero and discovered its crew was preparing for an urgent departure, even though planned repair work wasn’t finished. The $120 million boat is registered to a company that lists Sechin as its primary shareholder.

On March 5, Italian financial police in the port of San Remo seized the 132-foot superyacht Lena, which is flagged in the British Virgin Islands. Authorities said the boat belongs to Gennady Timchenko, an oligarch close to Putin and among those sanctioned by the European Union. With an estimated net worth of $16.2 billion, Timchenko is the founder of the Volga Group, which specializes in investments in energy, transport and infrastructure assets.

The 213-foot Lady M was also seized by the Italians while moored in the Riveria port town of Imperia. In a tweet announcing the seizure, a spokesman for Italian Prime Minister Mario Draghi said the comparatively modest $27 million vessel was the property of sanctioned steel baron Alexei Mordashov, listed as Russia’s wealthiest man with a fortune of about $30 billion.

However, Mordashov’s upsized yacht, the 464-foot Nord, was safely at anchor on March 4 in the Seychelles, a tropical island chain in the Indian Ocean not under the jurisdiction of U.S. or EU sanctions. Among the world’s biggest superyachts, Nord has a market value of $500 million.