It has been said that in order to be rich enough to afford a yacht, you actually have to be able to afford ten yachts. The United States government is learning that lesson the hard way, and they are now trying to authorize a sale of one such craft that belonged to sanctioned Russian oligarch Suleiman Kerimov, because it’s costing taxpayers nearly $1 million a month.
The more expensive a yacht is, the more it costs to keep it in your possession, and Kerimov’s craft, known as the Amadea, is one of the most expensive yachts in the world, having cost around $300 million. It was seized by authorities in May of 2022 and has been docked in San Diego since the following month. Court filings reveal the hefty bill for keeping it that way: $600,000 in so-called “running costs,” including maintenance, fuel, and $360,000 paying the contracted crew. Additionally, there’s another $144,000 for pro-rata insurance and $178,000 in dry-docking fees and other expenses. Altogether, the US Department of Justice says that maintaining the Amadea costs as much as $922,000 per month.
“It is excessive for taxpayers to pay nearly a million dollars per month to maintain the Amadea when these expenses could be reduced to zero through [a] sale.”
The process by which a seized yacht can be sold is legally complex, and prosecutors would have to prove Kerimov’s direct ownership before it can be sold. However, another Russian businessman, Eduard Khudainatov, claims he actually owns the yacht instead and has objected in court to a hasty sale of the craft. His argument is that a quick sale could push the price down, and he emphasizes that the nearly $1 million in monthly maintenance costs are a pittance compared to its potential sale value.
Khudainatov’s attorneys have refused to pay for any of those maintenance costs. Instead, they have stipulated a reimbursement for the over $20 million the government has paid so far, provided it is returned to its purported rightful owner. However, this ownership dispute is ongoing, and Khudainatov’s offer has not been accepted.
Even if the government does end up selling the Amadea, the proceeds from the sale would have to be held while the case between the Department of Justice and Kerimov is straightened out. Ultimately, the money would likely be contributed to the Ukrainian war effort.
What You Will Learn
- The significant financial burden of maintaining high-value assets like yachts.
- The complexities involved in the legal process of selling seized property.
- The implications of asset ownership disputes in high-profile cases.
- The potential use of sale proceeds for humanitarian efforts, such as supporting Ukraine.
