US Allocates $20 Million for Upkeep of Seized Superyacht Linked to Russian Oligarch

The US government is currently spending close to $1 million per month to upkeep a luxurious superyacht that was seized from a Russian oligarch who is under sanctions. This is all part of the Justice Department's strategy to exert pressure on the Kremlin.

The 348-foot Amadea was among the initial possessions confiscated by prosecutors as they work on a task force initiative aimed at holding individuals linked to the Kremlin responsible for their actions.

The superyacht belonging to Suleiman Kerimov was seized in Fiji in 2022 by local law enforcement and the FBI. It is alleged that Kerimov, who earned his wealth from gold, violated US sanctions by using the US banking system to pay for the yacht's expenses. The yacht is currently docked in San Diego.

Federal prosecutors have requested permission from a judge to sell the vessel, citing excessive expenses that have cost the government around $20 million, as stated in recent court documents.

A recent appraisal by the US Marshals Service values it at $230 million.

Prosecutors stated in a recent filing that it is excessive for taxpayers to pay nearly a million dollars per month to maintain the Amadea. They suggested that these expenses could be reduced to zero through an interlocutory sale.

The yacht requires approximately $600,000 monthly for maintenance, along with $144,000 for insurance, as stated in court documents. Additional one-time fees for dry docking expenses amount to $178,000 monthly, bringing the total bill to $922,000 per month.

Eduard Khudainatov and Millemarin Investments have emerged to assert ownership of the superyacht. They are against the sale and argue that the judge should not permit it until their motion to dismiss the civil forfeiture complaint is resolved.

They informed the judge that they have offered to pay back the government for the expenses of keeping the Amadea in return for its return. They want to make it clear that they never wanted U.S. taxpayers to bear the cost of maintaining the Amadea. The government made the mistake of seizing it, knowing the financial burden it would place on American taxpayers.

Prosecutors mentioned that it could be several more months before a decision is made on the motion, causing the expenses to maintain the vessel to continue to accumulate.

Editor's P/S:

The US government's decision to seize and upkeep a Russian oligarch's superyacht at a staggering cost of $1 million per month has sparked mixed reactions. While the action is intended to exert pressure on the Kremlin, it raises questions about the allocation of taxpayer funds. Critics argue that the exorbitant expenses associated with maintaining the yacht are an unnecessary burden on the American public, especially considering the challenging economic climate.

Furthermore, the legal proceedings surrounding the vessel have added another layer of complexity. The competing ownership claims and the government's request for permission to sell the superyacht have introduced potential delays in resolving the matter. The ongoing legal battle could further inflate the costs of maintaining the yacht, potentially putting even more strain on taxpayer funds. It remains to be seen how this situation will be resolved and whether the government's intended goal of pressuring the Kremlin will be achieved without incurring undue financial costs for the American people.