Fiji’s Court of Appeal has denied a request to prevent the U.S. Department of Justice (DOJ) from arresting Amadea. The DOJ therefore has won the latest round in a battle related to her owner’s identity. That battle in turn impacts whether the U.S. government can sell the yacht as reparations for the Russian invasion of Ukraine.
On May 27, the Fiji Court of Appeal dismissed an appeal from Feizal Haniff, representing Millemarin Investments. The firm is the legal entity owning the 348-footer (106.1-meter). According to Haniff, the United States had no jurisdiction in arresting Amadea under Fiji’s mutual-assistance laws until a court determines the yacht’s true owner. Fiji’s High Court initially approved the DOJ’s request to arrest Amadea on May 3.
The DOJ asserts the owner is Suleiman Kerimov, who holds a significant stake in Russia’s biggest gold producer. Kerimov further met with President Vladimir Putin in February when the Russian invasion of Ukraine began. The United States placed him under sanctions in 2018 over allegations of money laundering. Sanctions stem from the invasion of Ukraine, too. (Europe and the United Kingdom have sanctioned him similarly over Ukraine.)
Haniff, however, insists the ultimate beneficial owner is Eduard Khudainatov, yet another Russian citizen. Khudainatov formerly headed Rosneft, the state-controlled oil and gas company. Notably, he’s not under sanctions. During the appeals-court hearing, the DOJ agreed that on paper Khudainatov appears to be the owner. But, it provided details supporting its original assertion.
Firstly, it says, Kerimov used a few shell corporations to acquire Amadea in 2021. Secondly, a search warrant in Fiji uncovered documents showing Kerimov’s family purchased equipment like a pizza oven for use onboard. Finally, his children spent time aboard earlier this year. In emails obtained through the search warrant, crewmembers used codes to refer to each family member. For example, Kerimov’s daughter is G2, and he himself is G0.
Additionally, in reference to Khudainatov, the DOJ disputes he has the wealth to own Amadea. “The fact that Khudainatov is being held out as the owner of two of the largest superyachts on record, both linked to sanctioned individuals, suggests that Khudainatov is being used as a clean, unsanctioned straw owner to conceal the true beneficial owners,” an affidavit reads. The referenced second yacht is Scheherazade, which Italy froze on May 6 over allegations she actually belongs to Putin.
Although Haniff lost his appeal over arresting Amadea, he plans to file yet another appeal, with the Fiji Supreme Court. He also says he’ll request a court order barring the DOJ from taking the superyacht out of the country in the interim. In his pending appeal, he may repeat his claims that the DOJ case relies on hearsay and crewmembers spreading rumors. He made both arguments to the Court of Appeals.
Karl-Peter Ebner
Was there ever a US owned Ship, Yacht, or Airplane seized following the unlawful Wars of the USA ??
What a Gangster Country.