A September 10, 2018 file photo shows a megayacht named “Dilbar,” owned by Uzbekistan-born Russian business magnate Alisher Usmanov, while being refueled by a tanker in Mugla, Turkiye. Germany confiscates Russian billionaire Usmanov’s yacht in the port of Hamburg.
Sabri Kesen | Anadolu Agency | Getty Images
WASHINGTON – German authorities said they had seized the world’s largest superyacht after it was officially confirmed the ship had ties to Russian billionaire business tycoon Alisher Usmanov.
A German official confirmed to CNBC on Thursday that the motor yacht was linked to Usmanov and was therefore the subject of the asset seizure. German federal police told European authorities in Brussels on Wednesday that a thorough investigation revealed the ship belonged to Usmanov’s sister Gulbakhor Ismailova.
The stunning superyacht was initially prevented from leaving her anchorage by German authorities on March 3, according to a senior Biden administration official with knowledge of the matter.
The official, who spoke on condition of anonymity, said the yacht was not physically seized at the time but was not allowed to move from its current location in the German port city of Hamburg. The person had added that further action would be taken later.
The yacht, named Dilbar after Usmanov’s mother, spans 500 feet and is equipped with two helipads and the largest indoor pool ever installed on a private ship. The Treasury estimates that the current value of Usmanov’s yacht is about $735 million.
Usmanov and his superyacht found themselves in the crosshairs of the US and its allies in March after Russia invaded Ukraine on February 24 after coordinated global sanctions were imposed on Kremlin-linked Russian elites.
A Treasury Department official, who spoke on condition of anonymity, said no action taken by German authorities would involve transferring the ship to the United States under sanctions from the Treasury Department’s Office of Foreign Assets Control (OFAC).
US sanctions listed Usmanov’s yacht as barred property, effectively meaning that all transactions related to the yacht – including maintenance, hiring of crew and payment of dock fees – conducted with US persons or in US dollars are forbidden.
The yacht is the last ship seized since Russia invaded Ukraine. A $90 million megayacht owned by billionaire Viktor Vekselberg was seized in Spain on April 4 with the help of US authorities. Vekselberg was born in Ukraine but founded the giant Russian conglomerate Renova Group.
On March 2, French authorities seized a giant yacht they say is linked to Igor Sechin, a Russian billionaire and CEO of state-owned oil company Rosneft. Previously, he was Deputy Prime Minister of Russia in the government of President Vladimir Putin.
The Lady M, known to be the property of Russian billionaire Alexei Mordashov, was previously seized in Italy.
— CNBC’s Brian Schwartz contributed coverage from New York.