Court Approves Sale of Seized Russian Superyacht Amadea

News Summary

A New York court has approved the sale of the seized Russian superyacht Amadea, valued at $300 million. The yacht has been a financial burden for the U.S. government, incurring maintenance costs of around $32 million since its seizure. Despite an ongoing appeal by Eduard Khudainatov, who claims ownership, the judge’s ruling allows the sale to proceed, with proceeds intended to support U.S. efforts in Ukraine. The yacht’s maintenance costs have raised concerns among taxpayers as the legal tussle continues.

San Diego – A New York court has approved the sale of the seized Russian superyacht Amadea, valued at $300 million, after it has spent the last three years docked in San Diego Bay. This ruling comes amidst ongoing legal battles over the ownership of the yacht, which has proven to be a significant financial burden for the U.S. government, incurring maintenance costs of approximately $32 million since its seizure.

The Amadea, previously located off National City, is currently docked at the Port of San Diego’s cruise ship terminal pier. The U.S. Department of Justice (DOJ) initially seized the yacht from its Russian owners in 2022, when it was transported from Fiji to California. Monthly maintenance expenses for the yacht are estimated to be around $850,000, highlighting the ongoing costs associated with its upkeep.

Despite an ongoing appeal by Eduard Khudainatov, who claims ownership of the yacht, the judge’s ruling allows the sale to proceed. Khudainatov is not currently under U.S. sanctions, unlike Suleyman Kerimov, a Russian oligarch believed to be connected to the Amadea. Federal prosecutors contend that Khudainatov is a “straw owner” acting on Kerimov’s behalf, thereby questioning the legitimacy of his ownership claim.

The legal tussle is further complicated by civil forfeiture laws that allow for asset seizure without a criminal conviction, making it challenging to resolve ownership disputes. The DOJ has presented evidence and testimony suggesting that payments associated with the yacht’s maintenance were linked to Kerimov, while Khudainatov’s legal team maintains that the DOJ’s evidence is insufficient and that their investigation into the matter has been flawed.

Proceeds from the sale of the Amadea are intended to further U.S. efforts regarding the ongoing conflict in Ukraine, which has seen increased sanctions against Russian assets in response to the war. Funds from the sale will be utilized to support these initiatives after deducting maintenance costs.

The ongoing costs related to the yacht have been a matter of concern, as taxpayers continue to bear the burden until the yacht’s eventual sale and the resolution of the forfeiture process. Recently, the Port of San Diego has been billing C2C, Inc., the vessel’s agent, for docking expenses, which have totaled thousands of dollars in recent months.

Additionally, the Amadea has been rotated among various docking locations, including Broadway Pier and Tenth Avenue Marine Terminal, demonstrating the logistical challenges of managing a seized luxury asset. Former U.S. Attorney Charles La Bella remarked that maintaining such high-value seized properties is significantly more expensive than the costs associated with standard seized vehicles.

The DOJ has not disclosed specific details regarding when or where the auction of the Amadea will take place. The recent ruling represents a crucial victory for U.S. authorities aiming to enforce sanctions against Russian oligarchs and to disrupt their access to luxury assets. The resolution of the Amadea’s ownership dispute and sale will be closely watched as an indicator of the U.S. government’s commitment to penalizing those involved in the ongoing geopolitical strife.

The approval to sell the yacht, despite the ongoing appeal, underscores the complexity and challenge involved in cases related to sanctioned assets as authorities navigate the intersection of luxury ownership and international law. As the case continues to unfold, changes within the DOJ’s administrative structure may also influence the future handling of similar cases involving seized assets.

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• Boat International: Spotted Hodor Support Yacht
• The Cool Down: San Diego Yacht Billionaire Backlash
• VOA News: US Court Rejects Russian Oligarch’s Claim
• Times of San Diego: Judge Denies Ex-Rosneft Chief’s Claim
• Wikipedia: Superyacht
• Google Search: Russian superyacht Amadea
• Google Scholar: Russian oligarchs superyacht
• Encyclopedia Britannica: Superyacht
• Google News: Superyacht auction