Russian oligarchs who collectively control as one third of Russia’s wealthmost of which belong outside Russia in various ways, such as shadow bank accounts and real estate, are experiencing the wrath of sanctions from the European Union (EU) and the United States
After Russia’s invasion of Ukraine in late February, the West moved quickly to punish the regime of Russian President Vladimir Putin by freezing Russian assets, cutting off some of the country’s banks from the SWIFT messaging system, and taking other measures. Various well-known companies have also distanced themselves from Russia.
The US and its allies have specifically targeted more than 50 high-profile individuals associated with Putin’s inner circle, as well as Putin himself. Moreover, the actions of the West come to the actual seizure of property belonging to these individuals.
U.S. President Joe Biden delivers an address to the U.S. Congress at a joint session of Congress on March 1, 2022, in Washington, DC, on the Capitol Hall. (Photo by Saul Loeb – Pool/Getty Images)
In his address to Congress on March 1, President Biden addressed the oligarchs directly: “We are joining forces with our European allies to find and seize your yachts, your luxury apartments, your private jets.”
The US has not yet confiscated the property of those under sanctions, but has joined the European effort to cut off the assets. Yachts are a notable asset: according to the Superyacht Group, between 7 and 10% of the world’s superyachts are owned by Russian citizens.
In the picture taken on March 5, 2022, the Lady M yacht, owned by Russian oligarch Alexei Mordashov, moored in the harbor of the Empire. (Photo by ANDREA BERNARDI/AFP via Getty Images)
On March 4, Italian authorities seized a yacht belonging to Alexei Mordashov, chairman of the Russian steel and mining company Severstal.
On March 2, French customs officers confiscated the superyacht of Igor Sechin, CEO of the oil giant Rosneft. According to Bloomberg, the yacht was confiscated “because it was preparing for an urgent sailing”.
A picture taken March 3, 2022 at the La Ciotat shipyard near Marseille in southern France shows the Amore Vero yacht, owned by a company linked to Igor Sechin, chief executive of Russian energy giant Rosneft. (AFP / NIKOLAS TUKAT)
In Germany, the 512-foot yacht of Russian billionaire Alisher Umanov, one of the largest in the world and worth between 600 and 735 million dollars, is closely monitored. (Forbes originally reported that the yacht had been seized, but later made a correction.)
The White House announced new sanctions against Umanov on March 3, with the US Treasury Department stating that “any operation involving a yacht or aircraft, including things such as maintenance, hiring staff, or payment of docking or landing fees, conducted with U.S. citizens or in U.S. dollars is prohibited.” (The US sanctions also apply to Umanov’s private jet, which is reportedly one of the largest private jets in Russia.)
The story goes on
Dilbar, the fourth longest yacht in the world, owned by Russian oligarch Alicher Umanov, is seen in Monaco April 20, 2017. REUTERS/Eric Gaillard
Yachts linked to Russian oligarchs, as detailed in news reports and former CIA officer Alex Finley’s Yacht Watch project (Paywall), include a $100 million yacht linked to Putin.
Putin’s yacht “Greysful” sails along the Kiel Canal (North-Eastern Canal) near Rendsburg, north of Hamburg, Germany February 7, 2022. (REUTERS/Steffen Mayer)
Putin’s new worth is unclear, although some experts argue he may be the richest man despite claims by the Kremlin that his annual salary is only $140,000 and he owns only modest assets, such as an apartment in Moscow and three cars. .
In any case, while it’s unclear how these takeovers will evolve over time, the unprecedented moves indicate that Russian oligarchs’ yachts can no longer sail the world without inspection.
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