UPDATE, JUNE 13, 2024: A federal judge has denied the Department of Justice’s request for a swifn auction of the yacht Amadea. In pleading its case to the judge, the DOJ cited the monthly running costs of $600,000 being quite high for taxpayers. The judge, however, indicated that those costs are in keeping with what a yacht of this size requires for maintenance. In the meantime, Amadea is at a drydock in Everett, Washington for planned repairs.
Read on for our original article.
Nearly four months after the U.S. Department of Justice (DOJ) moved to sell a seized Russian superyacht, it’s in federal court presenting its case. The DOJ is pressing a judge to allow the auction of the yacht Amadea. It wants a decision quickly, too, pointing to the $600,000 monthly upkeep paid by taxpayers, and despite a lawsuit challenging ownership.
The court case follows the DOJ filing a civil forfeiture complaint against Amadea last October. This type of complaint contends that property or money was involved in a crime, or represents proceeds of a crime. It also contends that ownership should transfer to the U.S. government, which would then sell the assets. The DOJ alleged that the 348-footer (106.1-meter) underwent improvements and maintenance in violation of sanctions against her owner. According to the filing, that the owner is Suleiman Kerimov. He holds a major stake in Russia’s biggest gold producer and is a member of a Russian legislative body. He was placed on the U.S. sanctions list initially in 2018 over allegations of money laundering. Further sanctions followed Russia’s invasion of Ukraine in 2022. Sanctions prevent an individual from using the U.S. financial system without obtaining a special license.
The DOJ values Amadea at $325 million. In court documents filed earlier this month, it indicates that it’s outlaying monthly running costs of $600,000. Amid that sum, crew salaries are $360,000, and fuel is $75,000. A variety of other costs, including waste removal and general upkeep, total $165,000 per month. Additionally, the annual insurance premium, due this month, is $1.7 million. Yet another $5.6 million will go toward drydock repairs next month. Because these are “far from modest,” and U.S. taxpayers shouldn’t be held liable while the forfeiture request is under consideration, the DOJ says, the auction of the yacht Amadea should proceed.
A lawsuit filed at the same time as the civil forfeiture, though, presents a potential challenge. Eduard Khudainatov, a Russian who previously ran the government-controlled oil company Rosneft, claims he owns Amadea. Khudainatov isn’t under sanctions. His lawyers have claimed the yacht’s arrest took place under “false premises driven by political motivation.” They further say he’ll reimburse the U.S. government for cost outlays so far if the yacht returns to him.
Notably, while the DOJ maintains that Kerimov is the true owner, it says Khudainatov should pay the monthly upkeep during the forfeiture proceedings. Furthermore, because he hasn’t paid for any of it, the DOJ adds, the auction of the yacht Amadea should proceed.
Currently, Amadea is in San Diego. She arrived in the summer of 2023, following the DOJ collaborating with the government of Fiji to arrest her in its waters in May 2022. Amadea departed Fiji under U.S. control in June 2022.
Leave a Reply