NEW DELHI: The US administration is currently incurring costs of almost $1 million monthly to upkeep a high-end superyacht confiscated from a Russian oligarch under sanctions, highlighting the Justice Department‘s campaign to exert pressure on Moscow.
The 348-foot luxury vessel, Amadea, was one of the initial significant assets targeted by a special task force aiming to penalize Russians aligned with the Kremlin, a CNN report said.
In 2022, the superyacht was captured while at a Fiji harbor by local police and the FBI. The US authorities claim that its proprietor, Suleiman Kerimov, who accumulated his wealth via gold, breached US sanctions by utilizing the American banking system to pay for the yacht’s expenses. Currently, the yacht is moored in San Diego.
Presently, federal prosecutors have petitioned a court to authorize the yacht’s sale due to its burdensome maintenance costs, which have reportedly reached around $20 million, as per recent legal documents.
An appraisal recently estimated the yacht’s worth at $230 million, state the US Marshals Service records.
Prosecutors argue in court documents that it is “excessive” for the public to bear nearly a million dollars monthly in upkeep costs for the Amadea. These expenses, they note, could be completely eliminated if the yacht were sold in an interlocutory sale.
The monthly expenses for the yacht include around $600,000 for upkeep, plus an additional $144,000 for insurance. Moreover, intermittent expenses for dry docking elevate the monthly cost by another $178,000, culminating in a total of $922,000 per month, according to the court filings.
Eduard Khudainatov and Millemarin Investments, asserting ownership of the superyacht, have contested the sale. They have requested the judge to defer any sale decision until their plea to discard the civil forfeiture case is resolved.
They conveyed to the judge their willingness to refund the US government for the costs incurred in maintaining the Amadea, proposing its return. They acknowledged the vessel’s high maintenance costs but clarified that they never envisaged the US taxpayers bearing these expenses. However, they attribute the unwarranted seizure and resultant financial implications to the government’s decision, fully aware of the potential burden on American taxpayers.
The prosecutors highlighted that deciding on this motion could extend over several months, further increasing the total maintenance expenses for the vessel.
The 348-foot luxury vessel, Amadea, was one of the initial significant assets targeted by a special task force aiming to penalize Russians aligned with the Kremlin, a CNN report said.
In 2022, the superyacht was captured while at a Fiji harbor by local police and the FBI. The US authorities claim that its proprietor, Suleiman Kerimov, who accumulated his wealth via gold, breached US sanctions by utilizing the American banking system to pay for the yacht’s expenses. Currently, the yacht is moored in San Diego.
Presently, federal prosecutors have petitioned a court to authorize the yacht’s sale due to its burdensome maintenance costs, which have reportedly reached around $20 million, as per recent legal documents.
An appraisal recently estimated the yacht’s worth at $230 million, state the US Marshals Service records.
Prosecutors argue in court documents that it is “excessive” for the public to bear nearly a million dollars monthly in upkeep costs for the Amadea. These expenses, they note, could be completely eliminated if the yacht were sold in an interlocutory sale.
The monthly expenses for the yacht include around $600,000 for upkeep, plus an additional $144,000 for insurance. Moreover, intermittent expenses for dry docking elevate the monthly cost by another $178,000, culminating in a total of $922,000 per month, according to the court filings.
Eduard Khudainatov and Millemarin Investments, asserting ownership of the superyacht, have contested the sale. They have requested the judge to defer any sale decision until their plea to discard the civil forfeiture case is resolved.
They conveyed to the judge their willingness to refund the US government for the costs incurred in maintaining the Amadea, proposing its return. They acknowledged the vessel’s high maintenance costs but clarified that they never envisaged the US taxpayers bearing these expenses. However, they attribute the unwarranted seizure and resultant financial implications to the government’s decision, fully aware of the potential burden on American taxpayers.
The prosecutors highlighted that deciding on this motion could extend over several months, further increasing the total maintenance expenses for the vessel.