In the heart of New York, a legal drama unfolds over the fate of the superyacht Amadea, a lavish 106-meter vessel linked to sanctioned Russian oligarch Suleyman Kerimov. Despite the U.S. government's desire to auction off the yacht and redirect the proceeds to Ukraine, the Southern District Court of New York has blocked the sale, citing complications in ownership claims and the ongoing financial burden on American taxpayers.
The Confiscation of Amadea
Originally seized in Fiji in 2022 under a U.S. order identifying it as property of Suleyman Kerimov, the Amadea's value is estimated at $230 million. The U.S. Treasury Department had previously sanctioned Kerimov in 2014 and again in 2018 for his alleged roles in Russia's activities in Syria and Ukraine. Forbes estimates Kerimov and his family's net worth at approximately $10.7 billion.
Monthly Costs and Legal Stalemate
Currently, the U.S. government spends roughly $740,000 monthly to maintain and insure the yacht. This figure includes $600,000 for upkeep and $140,000 for insurance, leading to more than $7 million annually—a significant expense for U.S. taxpayers. The government has sought court permission to convert the yacht to cash by selling it, arguing that the ongoing expenses are unsustainable.
However, the court ruled that the maintenance costs of Amadea were not "excessive" and thus did not justify an expedited sale.
Complicated Ownership Claims
The situation took a twist when another Russian billionaire, Eduard Khudainatov, claimed that Amadea actually belonged to him, not Kerimov. Khudainatov, not under U.S. sanctions, has been described by the U.S. Justice Department as a "straw owner" for Kerimov—a claim Khudainatov denies.
Following the court's decision to deny the sale, legal representatives for Khudainatov and the company directly owning Amadea filed a memorandum opposing the U.S. government's efforts to exclude Khudainatov from the proceedings. They argued that Khudainatov is the rightful owner, and thus, the yacht should not be subject to confiscation.
Future Implications
The legal entanglement surrounding the Amadea is likely to extend, adding more costs and complications. The Justice Department has the option to appeal the decision, potentially prolonging the legal proceedings.
As the court navigates through these complex ownership claims and international sanctions, the fate of the Amadea hangs in balance, continuing to accrue substantial costs that are ultimately borne by American taxpayers. The case not only highlights the challenges of enforcing international sanctions and dealing with the assets of sanctioned individuals but also the intricate legal battles that can arise from such enforcement.
