The Scotsman

Russian oligarchs seek safe ports for superyacht targets of West’s sanctions

- By MICHAEL BIESECKER

Thesuperya­chtdilbarh­astwo helipads, berths for more than 130 people and a 25-metre swimming pool that itself can accommodat­e another superyacht.

Dilbar was launched in 2016 at a reported cost of more than $648 million ( £490m). Five years later, its purported owner, the Kremlin-aligned Russian oligarch Alisher Usmanov, was already dissatisfi­ed. He sent the vessel to a German shipyard last autumn for a retrofit reportedly costing several hundred million.

Dilbar was in drydock on Thursday when the United States and European Union announced economic sanctions against Mr Usmanov – a metals magnate and early investor in Facebook – over his ties to Russian president Vladimir Putin and in retaliatio­n for the Kremlin's invasion of Ukraine.

US president Joe Biden addressed Russian oligarchs during his State of the Union speech on Tuesday night, warning: "We are joining with our European allies to find and seize your yachts, your luxury apartments, your private jets. We are coming for your ill-begotten gains."

But 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 last week that German authoritie­s had impounded the Dilbar. But a spokeswoma­n for Hamburg state's economy ministry said no such action had yet been taken because it had been unable to establish ownership of the yacht.

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

Working with the Ukbased yacht valuation firm Vesselsval­ue, the Associated Press (AP) compiled a list of 56 superyacht­s – generally defined as luxury vessels exceeding 79ft in length – believed to be owned by a

few dozen Kremlin-aligned oligarchs. The yachts have a combined market value estimated at more than US$5.4 billion (£4bn).

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.

Many are anchored in the Mediterran­ean and Caribbean. But more than a dozen were under way or had already arrived in remote ports in small nations such as the Maldives and Montenegro, potentiall­y beyond the reach of Western sanctions. 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 Mr Putin, left a repair yard in Hamburg, Germany, on February 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 last week.

French authoritie­s seized the superyacht Amore Vero on Thursday 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 US sanctions list since Russia annexed Crimea in 2014.

The French finance ministry said in a statement that customs authoritie­s boarded the 289ft Amore Vero and discovered its crew was preparing for an urgent departure, even though planned repair work was not finished.

The 213ft Lady M was seized by Italian authoritie­s on Friday while moored in the Rivieria port town of Imperia. In a tweet announcing the seizure, a spokesman for Italian prime minister Mario Draghi said the yacht was the property of sanctioned steel baron Alexei Mordashov, listed as Russia's wealthiest man with a fortune of about $30bn (£23bn).

But Mr Mordashov's 464ft Nord was safely at anchor on Friday in the Seychelles, a tropical island chain in the Indian Ocean not under the jurisdicti­on of US or EU sanctions. Among the world's biggest superyacht­s, Nord has a market value of $500m (£377m).

Dennis Cauiser, a superyacht analyst with Vesselfind­er, said the escalating US and EU sanctions have sent a chill through the industry, with boatbuilde­rs and staff worried they will not be paid. It can cost upwards of $50m (£38m) a year to crew, fuel and maintain a superyacht.

Most of the Russians on the annual Forbes list of billionair­es have not yet been sanctioned by the US and its allies, and their superyacht­s are still cruising the world's oceans. The 237ft Stella Maris – seen by an AP journalist docked last week in Nice, France – is believed to be owned by Rashid Sardarov, a Russian oil and gas magnate.

Thecrashof­theroublea­ndthe tanking of Moscow stock markethave­depletedth­efortuneso­f Russia'selite.mrcauisers­aidhe expects some oligarch superyacht­s will soon quietly be listed by brokers at fire-sale prices.

On Thursday, the US Treasury Department issued a new round of sanctions that included a news release citing Mr Usmanov's close ties to Mr Putin and photos of Dilbar and the oligarch's private jet.

 ?? ?? 0 President Joe Biden: ‘We are coming for your ill-begotten gains’
0 President Joe Biden: ‘We are coming for your ill-begotten gains’

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