A Global Yacht Hunt For Russian Oligarchs Has Begun

PARIS – French authorities have blocked a yacht linked to Igor Sechin, the sanctioned CEO of Russian oil producer Rosneft, from leaving the port as authorities around the world drop their promise to be a global network of assets belonging to Russian oligarchs in response to Moscow’s invasion of Ukraine.

France had already seized a Russian-owned cargo ship, a rare interception at sea shortly after the first round of sanctions against several individuals, banks and other legal entities was revealed. Since then, the United States, the United Kingdom and the European Union have expanded their lists of sanctioned individuals and pledged to prosecute a group of super-rich Russian businessmen and officials who accuse them of benefiting from close ties to President Vladimir Putin.

The US Department of Justice launched a new task force on Wednesday to pursue and confiscate luxury real estate, private jets, yachts and other assets of sanctioned Russian oligarchs that officials say were hidden around the world. The task force is part of an international effort to raise the price of the Kremlin and its supporters to pursue the invasion of Ukraine, officials said.

“For those who support the Russian regime through corruption and the avoidance of sanctions: We will deprive you of safe haven and hold you accountable,” said Lisa Monaco, deputy chief prosecutor whose office will run the KleptoCapture task force.

France announced this week the creation of a similar working group to prosecute sanctioned Russian oligarchs and the assets of their families in the country. French Finance Minister Bruno Le Mer said the state was exploring ways to not only freeze assets but also confiscate them. “When we take it away, it means you are losing ownership of this apartment, this yacht or this house,” Mr Le Mer said, adding that the West was waging a “comprehensive economic and financial war against Russia”.

In response, Dmitry Medvedev, deputy chairman of Russia’s Security Council, tweeted: “Be careful with your tongue, gentlemen! And don’t forget that in human history, economic wars have often become real. Mr Le Mer later said that the use of the word “war” was inappropriate.

Mr Sechin’s yacht is an early trophy in French efforts. Mr Sechin was sanctioned by the United States in 2014 after Russia annexed Crimea. Most recently, he was included in a list of rich and influential figures sanctioned by the EU.

Representatives of Mr Sechin and Rosneft were not available for comment. When Mr Sechin was sanctioned in 2014 by the United States, he said he considered the move an endorsement of his effectiveness at Rosneft.

Mr Sechin was among a group of people sanctioned by the European Union.

Photo: MAXIM SHEMETOV / Reuters

The 280-foot Amore Vero, or “True Love” in Italian, was confiscated overnight at a shipyard in La Ciotat, on France’s Mediterranean coast, French officials said. The yacht was under repair, but French authorities said they were arranging an emergency departure. The French authorities said it belonged to a majority company owned by Mr Sechin.

Delivered to its owner in 2013, the yacht is registered under the flag of the Cayman Islands. She arrived in La Ciotat on January 3rd and had to stay there until April 1st for repairs, according to French authorities, who said the fact that the yacht was trying to leave French territorial waters prompted their actions.

This was not the first ship stopped by France since sanctions were imposed after the invasion. France intercepted a cargo ship bound for Russia in the English Channel last weekend, saying the ship was subject to new EU sanctions. French authorities say they have stopped the ship, a 400-foot merchant ship called the Baltic Leader, en route to St. Petersburg, Russia, as part of a joint operation with US authorities.

The ship, which was carrying vehicles, was listed in the US sanctions list as allegedly belonging to Promsvyazbank, a state-owned bank focused on Russia’s defense sector. The bank is also on the EU sanctions list, and French officials say it owns the ship. Representatives of the bank were not available for comment.

France has said it has worked with US authorities.

The new US team, which includes representatives of a number of federal law enforcement agencies, will seek to impose broad sanctions, export restrictions and other economic measures that are being imposed as officials step up pressure on Russia to end its invasion of Ukraine. The United States and its European allies are escalating sanctions against Russian elites, including Mr Putin.

The Ministry of Justice said the department would seek to prosecute violators of sanctions; aimed at using cryptocurrency to avoid sanctions; combating illegal efforts to undermine restrictions against Russian banks; and initiate criminal proceedings or use civil confiscation laws to confiscate property, including personal real estate, financial and commercial assets.

“We will not leave a stone unturned in our efforts to investigate, arrest and prosecute those whose criminal activities allow the Russian government to continue this unjust war,” said Attorney General Merrick Garland.

Write to Nick Kostov at [email protected]