A Russian businessman hasn’t provided credible evidence supporting his claim that he, not another individual, is the owner of the superyacht Amadea. This, according to a U.S. District Court judge who issued a ruling yesterday. The decision favors federal prosecutors’ efforts to force forfeiture of Amadea and therefore sell her at auction. However, some obstacles may remain.
Eduard Khudainatov, a former Russian state oil and gas executive, has been trying to block the transfer since late 2023. The U.S. Department of Justice filed a civil forfeiture complaint against Amadea in October of that year, naming sanctioned Russian billionaire Suleiman Kerimov as the owner. The DOJ alleged that the 348-footer (106.1-meter) underwent improvements and maintenance in violation of sanctions against Kerimov. He holds a major stake in Russia’s biggest gold producer and is a member of a Russian legislative body. Kerimov landed on the U.S. sanctions list initially in 2018 over allegations of money laundering. Further sanctions followed Russia’s invasion of Ukraine in 2022. Lawyers for Khudainatov, meanwhile, had argued that the yacht’s arrest took place under “false premises driven by political motivation.” Federal prosecutors, though, called Khudainatov a “straw owner” for Kerimov.
In his ruling this week, judge Dale Ho indicated that despite Khudainatov being connected to Amadea after September 2021, Kerimov was the actual owner during that same period. Furthermore, Kerimov and his family exclusively used the yacht, planning maintenance, too. “Claimants have not established under any standard that they had an interest in the Amadea other than bare title,” Ho writes.
Adam Ford, a lawyer for Khudainatov, says an appeal is forthcoming. “The court improperly relied on speculative and unreliable assertions from the government while failing to give due weight to the extensive evidence we presented,” he told Reuters.
Although the ruling appears to allow forfeiture of Amadea, the appeal could stand in the way, as could other factors. For instance, U.S. Attorney Pam Bondi recently eliminated the KleptoCapture Task Torce. The task force focused on identifying and seizing stolen assets under kleptocrats’ possession. The assets and auction funds related to them would go to the countries where they belong. Bondi directed prosecutors associated with the KleptoCapture Task Force to return to their prior posts. These changes are effective for 90 days, with the possibility of renewal or becoming permanent, Bondi also says. So far the U.S. Attorney’s office has not commented on what, if any, impact this would have on auctioning the yacht and forwarding the funds to Ukraine. But, earlier this month, President Donald Trump halted all military aid to Ukraine.
Under President Joe Biden, the DOJ was striving for a swift auction. Among the reasons, it cited the monthly $600,000 upkeep costs.
Currently, Amadea is in San Diego. She arrived in the summer of 2022, following her arrest in Fiji in May of that year. Amadea departed Fiji under U.S. control in June 2022.
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