“It was a symbol of their power …” Russian oligarch yachts have a panic

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Joe Biden has announced sanctions on the oligarchs to fight Vladimir Putin’s allies after the invasion of Ukraine. In his “State of the Union Speech,” he promised to target the Russian oligarchy and establish a task force in the Ministry of Justice called “Klepto Capture” to enforce sanctions. In a subsequent speech, the ministry said, “While the Ukrainians are hiding in the subway, we will track the crimes of the emerging Russian conglomerate, who fill their pockets with the money of the Russian people.”

After the invasion of Europe as well as the United States, Russia began to impose sanctions on the oligarchs. One of Russia’s billionaires, Alichelus Manov, bought for $ 600 million in 2016 and was seized two days after the sanctions were announced on the world’s largest construction yacht, the Dilbar. did. ..

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Meanwhile, the Hamburg government said the yachts were not physically seized and were not allowed to move to the German port city of Hamburg instead.

The most equipped yacht ever manufactured

Named after Usmanov’s mother, this yacht has the largest indoor swimming pool in history built on a private yacht. The current value of Dilbar is estimated to be approximately $ 735 million.

According to Forbes news, the “Dilver” was manufactured by Lürssen over 56 months. Boasting a huge swimming pool, two heliports, a sauna, a beauty salon and a gym, the superyacht also has 12 suites.

France takes the “AMOREVERO” yacht

After Germany, the news of the confiscation of the oligarch yacht came from France. Former Russian Deputy Prime Minister Igor Setin, CEO of Russian oil producer Rosneft, has seized the 88-meter superyacht “Amore Bello” at the Mediterranean port of La Ciotat.

Olivier Dussopt of the French Public Movement and the Ministry of Accounting tweeted on March 3.We seized yachts as part of the enforcement of EU sanctions against Russia and to support Ukraine.” Said.

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The yacht was reportedly under repair, but French officials said the “repair” meant an urgent arrangement for sailing. After Russia annexed Crimea in 2014, Igor Setin was also sanctioned by the United States. Business people are currently on the list of the European Union.

Superyacht Amore Bello

Yacht panic! ALL IN MOVE

Russian billionaire-owned superyachts have been in operation since the United States and its allies began to consider the possibility of sanctions on such property. Citing the maritime transport database “Marine Transport,” CNBC reported that at least four Russian billionaires have begun shipping yachts to Montenegro and Maldives, which have not signed a delivery treaty with the United States.

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Graphics: Harun Elibol

A new route for yachts allegedly owned by Putin: Hell

The yacht “Graceful”, allegedly owned by Vladimirputin in several news sources, departed the port of Hamburg, Germany on February 7, 2022 and arrived in Kaliningrad, Russia on February 9. did. Graceful is a luxury yacht believed to be worth about $ 100 million.

Anonymous, a Hakibist group, targeted the name of a yacht allegedly owned by Putin. The group hacked maritime traffic data, changed the Graceful call name “FCKPTN” (meaning “Grace”), and changed the ship’s destination to “Hell”.

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Anonymous group, “Putin’s yacht is now on the right track!” He blamed the attack in a tweet.

New name on the sanctions list

According to Forbes, another person on the European Union sanctions list was Mikhail Fridman, the seventh wealthiest Russian as of 2017. The private equity fund co-founded by Friedman was locked this week. LetterOne Holdings SA, an international investment company headquartered in Luxembourg, has frozen shares in Friedman and banned communication with anyone in the fund.

Alexey Mordashov, one of Russia’s wealthiest names and the largest shareholder of the German-based tourism group TUI AG, is also on the EU sanctions list. Criticizing the EU’s list of sanctions, Moldashov said:I have never been close to politics. I have always focused on creating economic value, providing employment and supporting local economies and businesses both in Russia and abroad.I have nothing to do with the current geopolitical tensions I don’t know why Europe put me on the sanctions list” Said.

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Alexei Mordashov resigned from the TUI Group Audit & Supervisory Board after being on the sanctions list. The largest shareholder of the TUI Group was 34%.

So why did EU countries decide to impose sanctions on Russia’s oligarchs? And most importantly, why is the “superyacht” confiscated?

Sanctions on individuals are only part of Putin’s efforts to economically attack Moscow after Putin invaded Ukraine. The western capital is targeting the Central Bank of Russia by imposing sanctions on banks and businesses.

The United States and the United Kingdom announced yesterday that they would impose further sanctions and travel bans on the wealthy Russians. Britain has sanctioned two more oligarchs, including the former Deputy Prime Minister of Russia.

The United States imposes visa restrictions on 47 people, including 19 Russian oligarchs and their families and close associates.

Meanwhile, Russian economic experts said seizure of Russian ultra-rich assets is unlikely to stop Putin, who is increasing military pressure in Ukraine. The sanctioned oligarchy is believed to have had little effect on Putin.

Symbol of luxury yacht of power for Russian wealth

However, the confiscation of Russian oligarch assets, especially their luxury yachts, has a very important symbolic effect. This “hunting” situation robs the rich Russians of their precious lifestyle.

Economist Anders Åsland, who advises the Russian and Ukrainian governments, explained the importance of yachts to their oligarchs.This sanction is very effective as it bothers them very much.Luxury yachts represent a symbol of power for the rich in Russia“He explained.

Russian national television moderator Vladimir Soloviev was also added to the EU sanctions list last weekend. Soloviev is furious with EU authorities for including him on the list and endangering two villas owned by actor George Clooney near his home on Lake Como, Italy.

“I bought it and paid a crazy amount of tax,” Soloviev said on a television show. Then suddenly someone came out and decided that I was on the sanctions list now. “

Sanctions will be extended to family members

Meanwhile, authorities will face some difficulties in seizing Russian oligarch assets. Ownership of real estate may be hidden under a corporation established at an offshore financial center (overseas). The official owners of these companies may be family and friends, not the businessmen themselves. With that in mind, authorities hope to partially close the gap by extending the latest sanctions to families.

Sanctions come in many forms around the world and may vary by jurisdiction. In some cases, it applies differently depending on different institutions within the same jurisdiction.

Sanctions on individuals are aimed at freezing assets. That is, ownership does not change, but individuals are prohibited from benefiting from it. This includes prohibiting individuals from using, selling, or generating income until the sanctions have been lifted and challenged by court or other means.

“War is a tragedy for the two brothers.”

During scrutiny, some emerging conglomerates recently tried to keep themselves away from the war and blamed the aggression, but did not criticize Putin. In a statement, TUI shareholder Moldashov said he did not understand why the EU sanctioned him and described the war as “a tragedy for the two brothers.”

Some oligarchs are resisting sanctions. Mikhail Fridman, born in Ukraine and co-founder of a major Russian bank, is one of them. Friedman held a press conference in London to condemn the sanctions and expressed himself in the following words:

“We did a lot of good things. We invested in businesses and created a lot of jobs. I sue to protect our reputation.”