August 29, 2024
United States Auctions Seized Russian Superyacht Amadea, Signaling Escalated Economic Pressure
WASHINGTON (AP) — The United States has initiated the auction of the Amadea, a sprawling $325 million superyacht, marking the first American sale of a seized Russian luxury vessel since Moscow’s full-scale invasion of Ukraine in February 2022. The auction, which opened for sealed bids and is set to conclude on September 10, signifies a tangible escalation in the U.S. strategy to exert economic pressure on Russian President Vladimir Putin and his close circle of oligarchs.
The Amadea: A Glimpse into Bespoke Luxury
Currently docked in San Diego, the 348-foot-long (106-meter-long) Amadea is a testament to bespoke luxury, custom-built by the esteemed German shipyard Lürssen in 2017 and meticulously designed by François Zuretti. Its opulent interior boasts extensive marble work, eight lavish state rooms capable of accommodating 16 guests, and dedicated quarters for a crew of 36. Beyond its living spaces, the yacht features a comprehensive array of amenities:
- A beauty salon and spa
- A fully-equipped gym
- A helipad
- A swimming pool
- A private elevator, catering to every imaginable comfort.
Contentious Ownership Battle Unfolds
However, the yacht’s glittering facade belies a contentious legal battle over its true ownership. While the Amadea is formally registered in the Cayman Islands under Millemarin Investments Ltd., U.S. authorities contend that its actual owner is Suleiman Kerimov, a prominent economist and former Russian politician sanctioned by the U.S. in 2018 for alleged money laundering.
Conversely, Eduard Khudainatov, former chairman and CEO of the state-controlled Russian oil and gas giant Rosneft, who remains unsanctioned, claims ownership of the vessel. U.S. prosecutors assert that Khudainatov is merely a “straw owner,” an individual used to obscure the yacht’s real beneficiary, Kerimov. Litigation surrounding this dispute is ongoing, casting a shadow over the auction.
Legal Challenge and Bidder Risks
Adam Ford, a representative for Khudainatov, issued a statement Wednesday calling the planned sale “improper and premature,” citing Khudainatov’s active appeal against the forfeiture ruling. Ford warned potential bidders of the significant risks involved, stating, “We doubt it will attract any rational buyer at fair market price, because ownership can, and will, be challenged in courts outside the United States, exposing purchasers to years of costly, uncertain litigation.” He further indicated that Khudainatov would pursue any proceeds from the sale, as well as compensation for any shortfall from the yacht’s estimated $325 million market value, should his appeal ultimately prevail.
Auction Mechanics and Broader Implications
To participate in the sealed bid auction, prospective buyers are required to submit a substantial 10 million euro deposit, equivalent to approximately $11.6 million, to be considered. The yacht itself has remained virtually untouched since National Maritime Services took custody of it in 2022.
This decisive move by the U.S. government is underpinned by a U.S. aid package for Ukraine, signed into law in May 2024, which specifically empowers the U.S. to seize Russian state assets located within its jurisdiction and repurpose them for the benefit of Kyiv. This auction thus serves as a powerful symbol of international efforts to hold Russia accountable for its actions and provide critical support to Ukraine.
