Yacht watch: What happens to the flashy toys of sanctioned Russian oligarchs?

Adriana Belmonte

Russian oligarchs, who are collectively estimated to control as much as one third of Russia’s wealth, most of which is held outside of Russia in various ways such as shadowy bank accounts and real estate, are feeling the wrath of sanctions by the European Union (EU) and the U.S.

Following Russia’s invasion of Ukraine in late February, the West swiftly moved to punish the regime of Russian President Vladimir Putin by freezing Russian assets, cutting off some of the country’s banks from the SWIFT messaging system, and other measures. Various prominent companies also distanced themselves from Russia.

The U.S. and its allies have specifically targeted more than 50 high-profile individuals with ties to Putin’s inner circle, as well as Putin himself. Furthermore, the moves by the West are going as far as actually seizing property owned by these individuals.

WASHINGTON, DC - MARCH 01: U.S. President Joe Biden delivers the State of the Union address to a joint session of Congress in the U.S. Capitol House Chamber on March 1, 2022 in Washington, DC. In his first State of the Union address, Biden spoke on his administration’s efforts to lead a global response to the Russian invasion of Ukraine, work to curb inflation, and bring the country out of the COVID-19 pandemic. (Photo by Saul Loeb - Pool/Getty Images)
U.S. President Joe Biden delivers the State of the Union address to a joint session of Congress in the U.S. Capitol House Chamber on March 1, 2022 in Washington, DC. (Photo by Saul Loeb - Pool/Getty Images) (Pool via Getty Images)

In his State of the Union address on March 1, President Biden addressed the oligarchs directly: “We are joining with our European allies to find and seize your yachts, your luxury apartments, your private jets.”

The U.S. has not yet seized any property of sanctioned individuals but has joined in Europeans in efforts to cut off assets. Yachts are a notable asset: According to Superyacht Group, between 7-10% of superyachts worldwide are owned by Russian citizens.

A picture taken on March 5, 2022 shows the yacht
A picture taken on March 5, 2022 shows the yacht "Lady M", owned by Russian oligarch Alexei Mordashov, docked at Imperia's harbor. (Photo by ANDREA BERNARDI/AFP via Getty Images) (ANDREA BERNARDI via Getty Images)

On March 4, Italian authorities seized a yacht owned by Alexey Mordashov, chairman of Russian steel and mining company Severstal.

On March 2, French customs officials impounded the superyacht of Igor Sechin, CEO of oil giant Rosneft. According to Bloomberg, the yacht was confiscated “as it was preparing an urgent departure.”

A picture taken on March 3, 2022 in a shipyard of La Ciotat, near Marseille, southern France, shows a yacht, Amore Vero, owned by a company linked to Igor Sechin, chief executive of Russian energy giant Rosneft. (AFP / NICOLAS TUCAT)
A picture taken on March 3, 2022 in a shipyard of La Ciotat, near Marseille, southern France, shows a yacht, Amore Vero, owned by a company linked to Igor Sechin, chief executive of Russian energy giant Rosneft. (AFP / NICOLAS TUCAT) (NICOLAS TUCAT / AFP)

The 512-foot yacht of Russian billionaire Alisher Umanov — one of the largest in the world and valued around $600-$735 million is being monitored closely in Germany. (Forbes initially reported that the yacht was seized but later issued a correction.)

The White House announced new sanctions on Umanov on March 3, with the U.S. Treasury stating that "any transactions related to the yacht or aircraft, including things such as maintenance, the hiring of operating personnel, or payment of docking or landing fees, conducted with U.S. persons or in U.S. dollars, are prohibited." (The U.S. sanctions also apply to Umanov's private jet, reportedly one of Russia’s largest privately-owned aircraft.)

The Dilbar, the fourth longest yacht in the world, property of the Russian oligarch Alicher Ousmanov, is seen in Monaco April, 20, 2017. REUTERS/Eric Gaillard
The Dilbar, the fourth longest yacht in the world, property of the Russian oligarch Alicher Umanov, is seen in Monaco April, 20, 2017. REUTERS/Eric Gaillard (Eric Gaillard / reuters)

Russian oligarch-linked yachts, as detailed by news reports and the Yacht Watch project by former CIA officer Alex Finley (paywalled), include a $100 million yacht linked to Putin.

Putin's yacht
Putin's yacht "Graceful" sails along the Kiel Canal (Nord Ostsee Kanal) near Rendsburg, north of Hamburg, Germany, February 7, 2022. (REUTERS/Steffen Mayer) (Stringer . / reuters)

Putin's new worth is unclear, though some experts argue that he may be the wealthiest man despite the Kremlin claiming that he earns just an annual salary of $140,000 and only controls moderate assets such as an apartment in Moscow and three cars.

In any case, while it's unclear how these seizures will play out over time, the unprecedented moves indicate that the yachts of Russian oligarchs are no longer able to sail across the world without scrutiny.

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