U.S. to auction seized Russian yacht worth hundreds of millions

CBS News

5 days ago

Bidding will soon begin on one of the world's largest yachts, seized three years ago by U.S. authorities who say it was owned by a sanctioned Russian billionaire.
The 348-foot Amadea was seized in Fiji in 2022 by the Justice Department. The agency said U.S. dollars and financial institutions were used to pay for maintenance on the luxury vessel, despite sanctions against its purported owner, gold mining billionaire Suleiman Kerimov.
Florida contractors National Maritime Services and Fraser Yachts will administer the auction of the seized vessel, worth more than $300 million. But not just anyone can submit a sealed bid for the Sept. 10 drawing. Bidders must have at least $500 million in net worth and be willing to put down a $10 million deposit for the luxury ship, which features a helipad, an ornate pool, heated floors, a "cinema setup," jet skis and jet packs among other amenities.
The Amadea was seized as part of the Justice Department's "Operation KleptoCapture," a task force that aimed to punish sanctioned Russian oligarchs for the country's invasion of Ukraine. The task force was disbanded soon after President Trump took office this year.
A holding company tied to the vessel claims it's not owned by Kerimov. The company and its lawyers say it's owned by another, non-sanctioned Russian, named Eduard Khudainatov. That claim has been rejected by the Justice Department.
An FBI agent said in a 2022 court filing that Khudainatov, an oil executive, does not have nearly enough money to own the Amadea.
The agent referred to Khudainatov as "a second-tier oligarch (at best)" and a "straw man" for sanctioned Russian elites.
In an affidavit filed in Fiji, the agent said he had interviewed "numerous members of the yacht brokerage community" to learn about the yacht's "concealed" ownership "behind nested shell companies."
A second ship tied to Khudainatov, the Scheherazade, estimated to be worth up to $700 million, was seized by Italy in 2022. It remains impounded.
A lawyer for Khudaintov warned would-be bidders against buying the ship.
"We doubt it will attract any rational buyer at fair market price, because ownership can, and will, be challenged in courts outside the United States, exposing purchasers to years of costly, uncertain litigation," Adam Ford said in a statement to CBS News.
Khudaintov is appealing a recent court decision mandating the ship's forfeiture.
"If our appeal succeeds, the government must repay the vessel's full value," Ford said.