Ukraine crisis: Russia billionaires move superyachts to Maldives to escape sanctions

The arrival of at least five vessels in the island nation follows the imposition of severe Western sanctions on Moscow over its invasion of Ukraine
Earlier, oligarch Alisher Usmanov’s 156m yacht Dilbar was seized by Germany

Ukraine

Reuters

Published: 10:58am, 3 Mar 2022

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At least five superyachts owned by Russian billionaires were anchored or cruising on Wednesday in Maldives, an Indian Ocean island nation that does not have an extradition treaty with the United States, ship tracking data showed.

The vessels’ arrival in the archipelago off the coast of Sri Lanka follows the imposition of severe Western sanctions on Russia in reprisal for its February 24 invasion of Ukraine.

Forbes reported late on Wednesday that Germany had seized Russian billionaire Alisher Usmanov’s mega yacht in a Hamburg shipyard.

Usmanov was on a list of billionaires to face sanctions from the European Union on Monday. A Forbes report based on three sources in the yacht industry said his 156m yacht Dilbar, valued at US$600 million, was seized by German authorities.

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German authorities did not immediately respond to Reuters inquiries. Forbes said representatives for Usmanov did not immediately respond to a request for comment.

Earlier, the Clio superyacht, owned by Oleg Deripaska, the founder of aluminium giant Rusal, who was sanctioned by the US in 2018, was anchored off the capital Male on Wednesday, according to shipping database MarineTraffic.

The Titan, owned by Alexander Abramov, a co-founder of steel producer Evraz, arrived on February 28.

02:23

Russian oligarchs have their yachts seized as part of Western sanctions against Ukraine invasion

Three further yachts owned by Russian billionaires were seen cruising in Maldives waters on Wednesday, the data showed. They include the 88m Nirvana owned by Russia’s richest man, Vladimir Potanin. Most vessels were last seen anchored in Middle Eastern ports earlier in the year.

A spokesperson for Maldives’ government did not respond to a request for comment.

Washington has said it will take strict action to seize property of sanctioned Russians.

“We have made it a priority to go after oligarchs or Russian elites who are key to President Vladimir Putin’s corrupt power,” Treasury Secretary Janet Yellen said in Chicago on Wednesday.

Russian oligarch Oleg Deripaska (right) aboard a yacht at an undisclosed location. Photo: YouTube

She added that Treasury, along with the Justice Department and US allies, plans to “uncover, freeze and seize their wealth around the world.”

Yellen was in Chicago the day after US President Joe Biden’s State of the Union address to amplify his message as Cabinet members fanned out around the country. She made a point to stop at a bakery in the Ukrainian Village neighbourhood as a show of support.

She followed that with a speech at the University of Illinois-Chicago that suggested the sanctions against Russian companies and powerful individuals will only intensify after a series of salvoes that began last week.

The Solaris superyacht (right), owned by Russian billionaire Roman Abramovich, moored in Barcelona, Spain. Photo: Bloomberg

The sanctions have already had a crushing impact on the Russian economy, causing the rouble to plunge and forcing the closure of the stock market.

By targeting oligarchs, the Biden administration is going after the elites who owe their fortunes to Putin and could possibly be used to pressure the Russian leader.

Biden, in his address Tuesday, briefly addressed oligarchs, saying, “We are coming for your ill-begotten gains,” pledging that the US and European allies were after their yachts, luxury flats and private jets.

Additional reporting by Associated Press