U.S. authorities were confronted with a harsh reality after the initial enthusiastic confiscation of the megayacht Amadea, a vessel built by Lurssen with a reported price range of $325 million to $400 million. After over a year in U.S. waters, federal prosecutors are now urgently attempting to sell it, requesting permission from a judge to hold an auction even before establishing exact ownership.
Amadea represents one of the largest seizures following the invasion of Ukraine by Russian forces and the subsequent imposition of sanctions by third parties, aimed at discouraging Putin and his oligarchs from further aggression. Initially detained in Fiji at the request of the U.S., the yacht was later moved to Hawaii and eventually San Diego, where it remains docked to this day.
Throughout this period, the U.S. has been covering the expenses, which are not to be taken lightly. In fact, the costs amount to over $7.2 million annually or $600,000 per month, making them significant enough for federal prosecutors to seek an expedited sale in order to minimize losses.
Amadea, like many yachts owned by Russian oligarchs, has a complex documentation trail that obscures ownership through multiple shell companies and at least one nominee owner. In this case, the nominee owner is believed to be Eduard Khudainatov, who also claimed ownership of the $700 million megayacht Scheherazade and has been disputing the seizure since 2022.
The true beneficiary of Amadea, or what the average person would refer to as “the owner,” is billionaire Suleiman Kerimov, also known as “The Russian Gatsby.” Both individuals are Russian, but the crucial distinction is that Kerimov is sanctioned by the U.S., whereas Khudainatov is not (although he is included on EU sanction lists). In other words, if Khudainatov’s ownership could be verified, the U.S. would have no grounds to retain his asset.
According to court documents filed in Manhattan over the weekend, federal prosecutors argue that the maintenance costs for Amadea exceed $600,000 per month, and at this point, it is illogical for taxpayers to continue shouldering the burden. These expenses cover crew salaries, as the vessel must maintain a minimal crew, as well as fuel, food, cleaning, docking and various fees, and maintenance.
As is customary with any seized asset, the U.S. is obligated to keep Amadea in the same condition as when it was confiscated. However, the yacht cannot be sold unless prosecutors can conclusively prove that the owner is a sanctioned individual. The latest filing seeks to bypass this step and proceed directly to the auction.
According to one trade publication, the proceeds from the auction would eventually be sent to Ukraine as aid. In other words, the U.S. is desperately trying to rid itself of the obligation it incurred with the seizure – to rid itself of the remarkable Amadea, much like discarding a hot potato. A very costly, 348-foot (106-meter), ultra-luxurious potato, but a potato nonetheless.
According to the Source autoevolution.com