UPDATE, JUNE 1, 2023: Megayacht News has confirmed that the U.S. Department of the Treasury has removed Alfa Nero from its sanctions list. This means she is no longer considered blocked property. The previously touted “unfettered sale” of Alfa Nero should indeed be without restrictions, eliminating licensing requirements. In fact, a Treasury Department spokesperson provided the following statement to us. “Today’s delisting marks a successful conclusion of the matter of the Alfa Nero. The Alfa Nero can no longer be used to facilitate A.G. Guryev’s lavish lifestyle, a lifestyle he built during his many years serving the Kremlin’s interests. This further underscores the United States’ commitment to work closely with international partners to deprive Russian oligarchs and elites of their assets and the proceeds of their wealth.”
Read on for our original article.
Antigua and Barbuda’s Ambassador to the United States says his government can now conduct the “unfettered sale” of Alfa Nero. It stems from reported approval from the U.S. Department of the Treasury. However, it doesn’t mean all restrictions over the sanctioned yacht are gone.
According to a press release from the ambassador, Ronald Sanders, the Treasury issued a license to his government on May 18. The license authorizes the yacht’s auction to non-sanctioned individuals and those who hold Treasury licenses specifically for the sale. Additionally, it paves the way for several related transactions, Sanders says. He quotes it permitting “bidding on the purchase of the vessel; paying deposits; and providing financing, insurance, or funding in connection with the purchase.”
Under U.S. law, Americans cannot engage in financial transactions involving U.S.-sanctioned individuals or property without Office of Foreign Assets Control (OFAC) exemption or authorization. OFAC is the division of the Treasury Department responsible for administering and enforcing economic and trade sanctions. OFAC authorization comes in the form of licenses allowing certain economic activities that would otherwise remain prohibited.
Sanders further indicates that the Treasury Department already may have issued licenses to “several interested bidders.” Gaston Browne, Antigua and Barbuda’s prime minister, said last month that several people had offered to buy the yacht.
Despite Sanders’ declaration that an “unfettered sale” of Alfa Nero will happen, constraints do indeed remain. The Treasury Department has not removed Alfa Nero from its blocked-property list. Sanders says that discussions between his government and the United States are ongoing, formally for de-listing her.
In the meantime, Sanders says, “this entire process broke new ground; there were no rule books or patterns to follow.” He concludes, “In this sense, much has been achieved by a small state.”
When the sale of Alfa Nero occurs, it will conclude actions put into motion in March. That month, the government of Antigua and Barbuda declared the superyacht abandoned. Cabinet officials noted that the 269-footer (82-meter) “has been in Antiguan waters for more than a year and has remained in the same position ever since.” Officials declared her a hazard to shipping and to the harbor, additionally noting that neither local suppliers nor the crew had received payments. The abandonment declaration was necessary to clear the way to auction the yacht. Since the pronouncement, Antigua and Barbuda has been funding the upkeep and dockage of the yacht.
While neither the yacht nor her reported ultimate beneficial owner, Andrey Guryev, were under sanctions when Alfa Nero arrived in Antigua, the United States sanctioned both in August 2022. As of this writing, each remains on the OFAC sanctions list as well. The U.S. Treasury Department identifies Guryev as a known close associate of Russian President Vladmir Putin and a former government official. The European Union sanctioned him in March 2022, with the United Kingdom following shortly after the Treasury Department.
Oceanco delivered Alfa Nero in 2007. Guryev acquired the superyacht in 2014 according to U.S. officials.
Leave a Reply