Customs agents seized the 86-meter-long vessel as its crew prepared to leave the port on the night of March 2, two days after the European Union added Igor Sechin, head of Russia’s state-owned oil company Rosneft. list of sanctions for the war in Ukraine. The French finance ministry says the yacht is owned by a company controlled by Sechin – one of Russian President Vladimir Putin’s former allies. The ministry declined to name the company. Sign up now for FREE unlimited access to Reuters.com Register But Sechin – in a statement sent to Reuters by Rosneft – denied this. Finance Minister Bruno Lemerre said France had officially seized the Amore Vero – a measure officials said gave the state custody of the yacht and left the costs to the owner. However, authorities have not informed third parties about the condition of the boat, leaving unclear who is responsible for its maintenance, said two companies involved in servicing the boat. As the bills piled up, a La Ciotat Shipyards executive said the company was not sure how to get paid. “We continue to price,” said Alice Boisseau, communications manager for La Ciotat. Asked who would pay the bill, she said: “We do not know.” Boisseau declined to answer further questions. The French customs service declined to comment because it had not informed the shipyards of the yacht’s condition. The questions hanging over the Amore Vero show the complexity of the authorities as they target the assets of Putin’s allies and the disruption caused to some companies. In the European Union, the financial wealth of the oligarchs remains largely untouched, read more, but European states have frozen or confiscated natural assets, including assets and at least 11 superyachts. John Dalby, owner of Marine Risk Management, which recovers maritime assets on behalf of insurers and banks, said Mediterranean governments had little experience in the legal intricacies of seizing superyachts. “There is a lack of coherence in what people do: between government agents and other third parties, such as creditors,” Dalby said, adding that he had spoken to authorities in the Mediterranean and the United States. He said creditors of the seized yachts – such as fuel suppliers or crew management companies – could ask the court to sell the boat to pay off their debts. The French customs service did not comment. PROPERTY The Russians own almost one in 10 superyachts, according to the special website Superyacht Times. Some of those who have been sanctioned are anchored in safe havens – such as Roman Abramovich’s Eclipse and Solaris in Turkey – or are sailing in international waters beyond the jurisdiction of the imposing states. The Amore Vero was in the port of France for repair by specialist on the luxury yacht MB92 when sanctions were imposed, Le Maire said. Authorities understood and did not just “freeze” the Amore Vero because its attempt to leave the port violated EU sanctions and violated French law, the minister said. Asked if she had received the full payment for the repair or if she expected to do so, MB92 told Reuters: “We are still waiting for an official notification from Customs that will clarify the official condition of the ship.” Maritime lawyer Pascal Flot said the difficulties in determining the ownership of the megacities may be one reason why the French authorities had not informed third parties about the Amore Vero status. The super-rich often control their assets through a web of shell companies in offshore tax havens, Flot said. Amore Vero flies under the Cayman Islands flag. Customs declined to comment. “SURPRISE DEVICES” The annual operating costs of the largest superyachts could be as much as 10% of their value, Flot said, including crew salaries, repairs, fuel, food, insurance, mooring fees and onshore services. . For a $ 540 million Sailing Yacht A owned by coal and fertilizer baron Andrei Melnichenko and held in the Italian port of Trieste, that could mean millions of dollars every month. read more In Italy, the seized assets are managed by a public administrator and the maintenance costs are borne by the state property agency. They must later be returned by the owner, otherwise the state may sell the asset to cover its costs. The Italian Agenzia del Demanio declined to comment. Melnichenko’s representatives did not respond to a request for comment. In France and Spain, the running costs of a “frozen” or confiscated yacht remain the responsibility of the owner. However, blockages in their bank accounts meant that owners who had been sanctioned often could not pay, said Rachel Leeds of the Nautilus International shipping union. Another danger for governments lies in the ships being wrongly detained, said Giannis Markogiannis, a Greek lawyer specializing in international law, insurance and taxation. A confiscated yacht whose property could not be linked to a name on the sanctions list had to be released, leaving the state responsible for any deterioration or damage during its shutdown, he said. Landlords may also sue for loss of charter profits or a ban on use. “All these issues must be carefully addressed by the occupying state to avoid unpleasant surprises.” said Markogiannis. Sign up now for FREE unlimited access to Reuters.com Register Report by Layli Foroudi at La Ciotat, Jonathan Saul in London, Aislinn Laing in Madrid, Alasdair Pal in Male. additional references by Catarina Demony in Lisbon and Corina Pons, Joan Faus in Madrid. written by Richard Lough; Edited by: Daniel Flynn Our role models: The Thomson Reuters Trust Principles.
