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Voice of America
12-03-2025
- Business
- Voice of America
Court rejects Russian oligarch's challenge to US efforts to confiscate yacht
A federal court in New York has rejected a Russian businessman's challenge to the U.S. government's efforts to confiscate a luxury superyacht that allegedly belongs to sanctioned Russian oligarch Suleyman Kerimov. The decision brings the United States closer to taking ownership of the yacht — known as Amadea — through a legal procedure known as civil forfeiture. The ruling likely represents the biggest victory so far in plans started under former President Joe Biden's administration to seize assets of sanctioned Russian tycoons and use them to support Ukraine's war effort. On March 10, the U.S. District Court for the Southern District of New York ruled that Russian businessman Eduard Khudainatov did not have standing to challenge forfeiture of the yacht because he was not its owner. And because no one else has claimed ownership, the U.S. Department of Justice will now pursue a judgment of forfeiture by default. Khudainatov's legal team plans to appeal the decision. 'The ruling is both legally and factually flawed, and we are confident it will not withstand appellate review,' Adam Ford, a lawyer representing Khudainatov and his company, said in a statement. The DOJ declined to comment on the ruling. U.S. prosecutors believe the 106-meter elite superyacht that is valued at over $230 million belongs to Kerimov, a senator, businessman and ally of Russian President Vladimir Putin. The court also concluded in legal documents that the evidence suggests that after September 2021, Kerimov or his family exercised ownership of the vessel. In 2018, the U.S. government imposed sanctions on Kerimov. The government later alleged he or people acting on his behalf made payments for repairs and upkeep of the yacht that passed through the U.S financial system — a violation of those sanctions. U.S. law enforcement seized the Amadea in 2022. But the following year, Khudainatov, who is not under U.S. sanctions, claimed ownership interest, setting the stage for a legal battle that continues today. The outcome of the case will be important not only for the true owner and Ukraine but also for American citizens. As VOA reported in May 2024, U.S. taxpayers have spent more than $740,000 a month on the yacht's maintenance. Last December, The Washington Post reported that servicing the yacht had cost the country roughly $30 million. The court previously denied the DOJ permission to sell the yacht and convert it into cash, a move that would save the government money. Battle for Amadea In May 2022, a few months after Russia launched its full-scale invasion of Ukraine, the island nation of Fiji seized the Amadea at the United States' request. It was later transferred to U.S. law enforcement. The seizure appeared to be a major victory for Task Force KleptoCapture, a DOJ unit established by the Biden administration to enforce sanctions on Russian oligarchs. But that victory turned out to be elusive. Civil forfeiture allows law enforcement to seize assets — frequently drugs, cash, automobiles and houses — that have been used in or resulted from the commission of a crime. The legal procedure's main advantage is that it does not require a criminal or civil judgment against the property's owner. But in the case of the Amadea, if Khudainatov is the yacht's owner, then financial transactions made through the U.S. to service the yacht do not violate the sanctions order. The DOJ considers Khudainatov a 'straw owner' and alleges that he is the beneficiary owner of at least eight yachts and yacht projects — a fleet worth over $1 billion. Prosecutors say that stretches far beyond his financial means, and that the yachts belong to other people. For example, the DOJ claims that Igor Sechin, the sanctioned CEO of Russian state-controlled oil company Rosneft, owns one of them. Journalists have tied the Scheherazade, another superyacht from this fleet, to Putin. In May 2022, it was seized in Italy. But proving that the Amadea belongs to Kerimov has been a challenge for the DOJ. Prosecutors alleged that the yacht's ownership was hidden behind several companies. They asserted that documents and testimony discovered during the DOJ's investigation confirmed it was controlled by Kerimov. Khudainatov's legal team argued that U.S. law enforcement conducted a hasty, partial investigation before seizing the yacht. They alleged that the DOJ also pressured yacht personnel and witnesses to provide the testimony it wanted and selectively presented evidence to support its version of the story. Among the evidence that Khudainatov's legal team submitted is a sworn statement by Kerimov's daughter Gulnara, claiming to have chartered the Amadea for a trip in early 2022 with her children, brothers and sisters, and their nannies and bodyguards. But she stated that her parents were not present on the yacht, and that she never owned it. The U.S. government 'resorted to desperate, strong-arm tactics to get the statements that fit their false narrative,' lawyer Ford said in a statement last month. 'The government simply fabricated the allegations that Kerimov purchased the Amadea. It is owned by Mr. Khudainatov and always has been.' Next steps Stefan Cassella, a former federal prosecutor and expert on civil forfeiture, does not expect the case to be over anytime soon. A month before the ruling on Khudainatov's status, he told VOA that the standard strategy for resisting forfeiture typically consists of dragging out the proceedings for as long as possible to increase the costs for the government. Cassella expected Khudainatov to appeal any ruling, a process he thought would take at least a year. 'Civil forfeiture is often mistaken to be a streamlined process,' Cassella said. 'It is not. It is saturated with due process — and it should be.' Additionally, DOJ priorities have changed since the start of the case. On Feb. 5, Pam Bondi took office as the new U.S. attorney general. That same day, she sent a memorandum stating that the DOJ's new priority would be the 'total elimination' of drug cartels and transnational criminal organizations. In the same document, she announced the dissolution of the KleptoCapture task force, the anti-kleptocracy team and the kleptocracy asset recovery initiative.
Yahoo
11-03-2025
- Business
- Yahoo
Russian Yacht Valued at $300 Million Now Faces Forfeiture
(Bloomberg) -- The US moved closer to auctioning off sanctioned Russian billionaire Suleiman Kerimov's superyacht, one of the most glittering prizes in its asset seizure efforts, after a judge ruled that a second Russian who claims ownership has no legal standing in the case. NJ College to Merge With State School After Financial Stress NYC Congestion Pricing Toll Gains Support Among City Residents Where New York City's Zoning Reform Will Add Housing Buffalo's Billion-Dollar Freeway Fix Is on Ice, But Not Because of Trump Inside the 'Not Architecture' of High Line Designers Diller Scofidio + Renfro Monday's ruling that the US has won forfeiture of the boat comes after a legal fight over the 348-foot (106-meter) Amadea, following a Biden administration program to target wealthy Russians linked to President Vladimir Putin's war on Ukraine. The yacht was seized in Fiji in 2022 at the request of the US, which claimed that Kerimov is the owner. But a wealthy Russian who isn't under US sanctions, former Rosneft head Eduard Khudainatov, said it really belonged to him. The government contended that Khudainatov was just a straw owner masking Kerimov's true role to help him dodge the sanctions. The Amadea is one of the most visible trophies for the Joe Biden-era Justice Department's KleptoCapture task force, established in March 2022 to go after overseas assets linked to Russian tycoons in Putin's circle. But the fate of the government's efforts to enforce Russian sanctions through such asset seizures is now unclear, after President Donald Trump's attorney general, Pam Bondi, disbanded the group shortly after Trump took office. Straw Owner In the meantime, government lawyers continued to pursue the case. A Justice Department spokesperson said on Monday that the US continues to litigate existing forfeiture cases and that a law permitting money seized under the sanctions to be provided as aid to Ukraine expires in May and is at the discretion of the attorney general. In his ruling, US District Judge Dale Ho in Manhattan said the evidence showed the Amadea's ownership was transferred to a company tied to Kerimov following a payment of €225 million ($244 million). That's enough to conclude that Khudainatov isn't the yacht's true owner but just held title to it for another party, and therefore lacks standing to contest forfeiture, Ho said. He also dismissed Khudainatov's claim for his repeated failure to provide pretrial testimony in the case. The judge ruled in the government's favor on forfeiture. Adam Ford, a lawyer for Khudainatov, said the judge got it wrong and that his client plans to appeal. 'The court misapplied the law governing standing in forfeiture proceedings, disregarding well-established principles that protect the rights of claimants in such cases,' Ford said in a statement. 'Moreover, the court improperly relied on speculative and unreliable assertions from the government while failing to give due weight to the extensive evidence we presented in support of our claim.' High Maintenance The German-built yacht has cost US taxpayers almost $750,000 a month to maintain and insure as it remains in custody in San Diego pending the conclusion of the legal battle. It has a beauty salon, a swimming pool, eight suites and a VIP cabin complete with study and dressing rooms, according to One estimate valued it at $300 million or more, while an independent appraiser later put its fair market value at $230 million. Kerimov is the 17th-richest person in Russia, with a net worth of $8.9 billion, according to the Bloomberg Billionaires Index. During a hearing, Justice Department lawyer Rachael Doud told the judge that evidence showed Kerimov had bought the yacht through intermediaries in 2021, after which his family used it exclusively. Ford argued that the government had no evidence that his client is a straw owner, calling the seizure 'unlawful' and 'a failed political stunt.' The case is US v. M/Y Amadea, 23-cv-09304, US District Court, Southern District of New York (Manhattan). (An AI summary previously at the top of this story was removed because it misstated the year the yacht was seized.) How Natural Gas Became America's Most Important Export Germany Is Suffering an Identity Crisis 80 Years in the Making The Mysterious Billionaire Behind the World's Most Popular Vapes Disney's Parks Chief Sees Fortnite as Key to Its Future Greenland Voters Weigh Their Election's Most Important Issue: Trump ©2025 Bloomberg L.P.
Yahoo
10-03-2025
- Politics
- Yahoo
Russian oligarch's superyacht could be auctioned in US
A luxurious superyacht that belonged to Russian billionaire Suleiman Kerimov may be headed to the auction block after a US judge on Monday dismissed a competing claim to ownership of the $300 million vessel. The 348-foot (106-metre) Amadea has been docked in the California port of San Diego after it was seized by US authorities from the sanctioned Russian oligarch. Another wealthy Russian, Eduard Khudainatov, the former head of Russian state oil and gas company Rosneft, claimed in a New York court to be the rightful owner of the vessel but his claim was dismissed by District Judge Dale Ho. According to prosecutors, Khudainatov was a "straw owner" of the Amadea and the true owner was Kerimov, a close ally of Russian President Vladimir Putin who was sanctioned by the United States in 2018 and again in 2022 after the Russian invasion of Ukraine. Following the invasion, the US Justice Department under then-president Joe Biden began seizing the assets of Russian oligarchs close to Putin, an operation known as Task Force KleptoCapture. President Donald Trump disbanded the task force after taking office. The US Congress passed legislation last year that allows for the sale of seized Russian assets, with the proceeds going to provide humanitarian assistance to Ukraine. The Amadea, which has a helipad, pool, jacuzzi and "winter garden" on deck, according to the website was seized in Fiji in April 2022 at the request of US authorities and later transferred to San Diego. cl/mlm
Bloomberg
10-03-2025
- Business
- Bloomberg
Russian Yacht Valued at $300 Million Now Faces Forfeiture
The US moved closer to auctioning off sanctioned Russian billionaire Suleiman Kerimov's superyacht, one of the most glittering prizes in its asset seizure efforts, after a federal judge ruled that a second Russian who claims ownership has no legal standing in the case. Monday's ruling comes after a legal fight over the 348-foot (106-meter) Amadea following a Biden administration effort to target wealthy Russians linked to President Vladimir Putin's war on Ukraine.
The Guardian
10-03-2025
- Business
- The Guardian
US judge denies ex-Rosneft chief's claim to $300m seized superyacht
A US judge on Monday ruled that a former chief of Russian state oil and gas company Rosneft does not have a plausible claim to own a $300m superyacht that US authorities seized in 2022, in a win for the US Department of Justice. US district judge Dale Ho's decision boosts federal prosecutors' bid for a forfeiture of the 348ft (106-meter) Amadea, which could be sold at auction. Congress last year passed a law authorizing the transfer of seized Russian assets to Ukraine to bolster its military defenses. Eduard Khudainatov, who led Rosneft from 2010 to 2013, sought to block a forfeiture by claiming ownership of the yacht in late 2023. But prosecutors in Manhattan called Khudainatov a 'straw owner' for Russian billionaire Suleiman Kerimov, who is under US sanctions. Washington's diplomatic stance toward Moscow has shifted substantially since US authorities seized the Amadea in 2022. The seizure came as former Democratic president Joe Biden's administration ramped up sanctions enforcement against people close to Russian president Vladimir Putin, to pressure Moscow to halt its war in Ukraine. But after Donald Trump took office in January, the US attorney general, Pam Bondi, disbanded Task Force KleptoCapture, whose many actions targeting Russian oligarchs included high-profile cases such as the Amadea seizure. Then on 28 February, Trump assailed Volodymyr Zelenskyy, the Ukrainian president, as lacking gratitude for US aid. Trump on 3 March paused military aid to Kyiv altogether. Zelenskyy had enjoyed warm relations with Biden, and has said he could salvage his relationship with Trump. Kerimov and his family are worth $10.9bn, according to Forbes magazine, after he amassed a fortune through Russian gold miner Polyus. He was sanctioned by the US treasury department in 2014 and 2018 over Russian activities in Syria and Ukraine. Prosecutors said he violated those sanctions by making more than $1m of maintenance payments on the yacht. Khudainatov is not subject to US sanctions. His lawyer, Adam Ford, has said prosecutors had no witnesses to establish that Kerimov owned the Amadea. 'There's simply nothing to connect Suleiman Kerimov to the vessel,' Ford said at a 21 January court hearing. Prosecutor Rachael Doud said at the hearing that Kerimov's niece paid a company controlled by Khudainatov €225m in 2021. Thereafter, Kerimov's family had sole use of the Amadea, using it for Mediterranean and Caribbean trips, and had been planning major renovations, Doud said. The Amadea is docked in San Diego, and the US government is paying around $600,000 a month to maintain it, prosecutors have said.
