Eclipse, the luxury private yacht owned by Russian billionaire Roman Abramovich, moors at the cruise port in Marmaris district in Mugla, Turkey, March 22, 2022.
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Southwest Turkey’s azure waters this week saw the arrival of two multimillion-dollar superyachts reportedly owned by Russian oligarch Roman Abramovich, whose voyage to evade western sanctions continues.
The Eclipse, a 533-foot, six-story superyacht – one of the largest in the world – docked in the resort town of Marmaris on Tuesday and rounded nearby Greek islands and the area of EU sanctions, tracking data showed.
Complete with two helipads, two swimming pools, a disco hall and a mini submarine, it joins the 458ft Solaris, another luxury yacht linked to Chelsea FC owners, which arrived in the Turkish resort of Bodrum a day earlier .
They make up two Superyachts known to be owned by the oligarch, both sailing under Bermuda flags.
Worth an estimated $600 million or more each, Abramovich is now stationing $1.2 billion in the non-EU country to move his fortune out of US reach, UK and EU governments target Russia’s wealthy elite.
And it’s a legitimate move – as long as the yachts remain outside the territorial waters of the sanctioning countries, which stretch 12 nautical miles offshore. Of course, Abramovich is not currently subject to US sanctions for facilitating talks between the White House and President Vladimir Putin – a position the US is currently weighing.
“Yachts believed to be beneficially owned by sanctioned persons will be permitted to travel and operate outside of EU/UK/US waters,” said Benjamin Maltby, partner at UK-based Keystone Law and yacht and luxury wealth law expert. to CNBC on Wednesday.
A neutral outpost for oligarchs
Turkey has refused to follow its NATO allies in imposing sanctions, despite harsh criticism of Russia’s war in Ukraine, saying it is opposed in principle.
In view of the diplomatic and economic relations with Russia, especially with regard to Russian gas imports, and the sometimes volatile relationship with western partners, this is unlikely to change in the foreseeable future.
“This delicate dance involves an understanding — as with the 2014 annexation of Crimea — that Turkey will not join Western sanctions against Russia,” Emre Peker, director and Turkey specialist at Eurasia Group, told CNBC.
The superyacht Solaris, owned by Roman Abramovich, was spotted in Tivat, Montenegro in the waters of Porto Montenegro on March 12, 2022 before later being relocated to Bodrum, Turkey.
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Instead, Turkey has positioned itself as a neutral and valued mediator in Russia-Ukraine talks, with Dutch Prime Minister Mark Rutte on Tuesday praising the country for “doing everything it can do”.
That has made it a destination of choice for Russians looking to preserve their wealth and make investments in an increasingly inhospitable global market.
Abramovich, who does not travel on either yacht himself, was in Istanbul last week, according to flight tracking data.
“He wants to do some work and possibly buy assets,” a source told Reuters, noting similar moves by other oligarchs. Abramovich’s sale of his prized Chelsea football club – confiscated by British authorities two weeks ago – continues.
Turkish government spokesmen and Abramovich did not immediately respond to a CNBC request for comment.
Outside the scope of sanctions – for now
Meanwhile, the accommodating environment means its yachts will not be impounded or impounded as long as they remain in Turkish waters.
This contrasts with the rapid capture of other oligarch yachts, including Alexei Mordashov’s 213-foot vessel in Italy and Igor Sechin’s 280-foot yacht in France in recent weeks.
However, Maltby noted that some yachts stationed in neutral waters could still violate international legal conventions, which could result in arrests on other grounds.
For example, the classification society Lloyd’s announced two weeks ago that it would no longer offer services for Russian ships, while the Isle of Man’s ship register announced that certain yachts would be deregistered.
“Recent announcements by certain regulators…mean that some of these yachts may be unsafe and/or uninsured in the eyes of port authorities outside the EU/UK/US and could be detained on that basis,” Maltby said.
Meanwhile, crew and repair workers—in protest against the war and fear of reputational risk—might be reluctant to get involved in the operations and maintenance required for such large luxury ships.
“While Turkey has not imposed sanctions, maintenance and utility companies may now want upfront payment – which is not common. Whether and how quickly such payments can be made remains to be seen,” Maltby said.