In an audacious display of high-seas drama, Western sanctions have ensnared the floating palaces of Russian oligarchs, transforming them into costly white elephants for European states. Italy seized the world’s largest sailing yacht, allegedly belonging to the Russian oligarch Andrey Melnichenko. A towering marvel at 143 meters in length, now moored off Trieste like a costly exhibit. Italien Taxpayers have to foot the bill of €800,000 per month for the maintenance!
The superyacht, called Sailing Yacht A, a behemoth of luxury valued at a staggering $600 million, isn’t just turning heads but burning through Italian taxpayer money at an eye-watering rate of €800,000 a month for upkeep, tallying up to between €7 and €10 million by the end of February 2024.
Melnichenko, whose fortune Forbes pegs at a cool €25 billion as of February 2024, finds himself at the heart of a legal tempest over the yacht’s ownership. The oligarch, currently enjoying Dubai’s hospitality, insists “Sailing Yacht A” doesn’t belong to him but to a sanctions-proof entity. His fleet, including the $300 million “Motor Yacht A,” also allegedly in Dubai, apparently sails under the flag of corporate anonymity.
As lawyers clamor for the yacht’s release and seek damages, the Italian financial police stand firm, pointing to Melnichenko as the true captain of this luxury liner. The courts in Rome now hold the compass to navigate this legal squall.
The plot thickens with oligarchs and their emissaries weaving a narrative of dissociation from these opulent vessels. Alexander Byrichin, the voice of the oligarchy, proclaims Melnichenko’s estrangement from “Sailing Yacht A,” now supposedly owned by a foundation. Italy’s finance ministry, however, cuts through this fog of ownership, freezing the asset firmly in Melnichenko’s portfolio.
This saga isn’t isolated. The case of the “Alfa Nero,” nabbed in Antigua and eyed by former Google CEO Eric Schmidt for a steal at $67 million, adds another layer of intrigue. Authorities allege that the superyacht belongs to the sanctioned oligarch Andrey Guryev. However, a claim by Guryev’s daughter asserts ownership through corporate veils scuttled Schmidt’s acquisition ambitions, leaving Antigua’s taxpayers to foot the hefty $110,000 monthly maintenance bill.
Read more about the Alfa Nero Case here on FinTelegram
The financial vortex created by these superyachts, demanding a maintenance crew and stringent security, all paid from public coffers, spotlights a ludicrous chapter in the sanctions playbook. With maintenance costs soaring into the millions, the dilemma of what to do with these seized symbols of excess lingers, burdening Western taxpayers under the shadow of a legal limbo that stalls any potential sale.
As the spectacle unfolds, the sanctions saga against Russian oligarchs inadvertently scripts a narrative of fiscal folly, leaving Western nations navigating the choppy waters of ownership disputes and spiraling maintenance costs. The luxury yachts, seized in a bid to pressure the Kremlin, now anchor a debate on the true cost of sanctions, paid in millions by unwitting taxpayers.
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