$100M Graceful Superyacht Underwent a $31M Refit Under Sanctions, Is Ready to Cruise Again

Graceful is also a very controversial vessel, not because of itself but because of its ownership: it is the second superyacht delivered to Russian President Vladimir Putin, his all-time favorite, and "the one that got away," as the saying goes, when sanctions went into effect. Considering Putin owns an entire fleet of them, that makes Graceful pretty special.

It is now even more so, having undergone a complete refit that sees it go from a fancy floating palace to a super-fancy floating palace.

That wouldn't be newsworthy in and of itself. After all, superyachts undergo refits whenever the owner deems it fit (and can afford it), right? But Graceful is under sanctions as of early last year, so even if it is still on the loose, the direct beneficiary – Putin, in this case – shouldn't be able to work with companies from the same countries where sanctions are in effect to carry out extensive work on it. And least of all, he shouldn't be doing that out of his meager salary and not when his country is at war.

These are the arguments brought forth in the latest report from jailed Putin opposition leader Alexei Navalny and his team. Beyond making a convincing case on the issues above, the report shows glimpses into the elaborate international machine at work to do Putin's bidding when it comes to his favorite boat, at least. It also offers an insight into how Graceful might look come the next cruising season.

Not that it wasn't a spectacular vessel already. Construction on it began in 2006, but delivery took another eight years, with the final touches put at the Lurssen-owned Blohm + Voss shipyard in Germany. Graceful was supposedly modeled on the "discerning owner's" first yacht but was twice everything the other one was, which is an elegant way of saying it was twice as large and twice as luxurious.

Measuring 270 feet (82 meters) in total length, Graceful offers accommodation for 12 guests and 14 crew, and incredible amenities that range from dual helipads to a convertible pool slash dancefloor slash cinema or a private wine cellar hidden inside the master suite. Not many specifics about the build or the finishes were ever made public, which only added more weight to the half-confirmed report that Putin was, indeed, the owner.

In the weeks leading up to the start of the Russian invasion of Ukraine, Graceful was at the Blohm + Voss shipyard, undergoing repairs. The Navalny report says that a malfunction with the MTU system had rendered Graceful useless. Since it was already there, Putin had ordered a complete overhaul.

The report shows that, within days of the invasion, the shipyard was ordered to round up the works, as the ship would be leaving dock soon, to complete all works in the Russian Federation. It was a panicked dash to cover holes in the decks and render the hull floatable again, to round up the crew, and close all accounts and ongoing transactions. Graceful left by tugboat, no longer able to sail under its own power.

It went to Kaliningrad, where work continued on it unbothered, thanks to an elaborate scheme that buried ownership so deep in paperwork that the same companies initially contracted for the refit were still working the job. In June, the vessel went to St. Petersburg and is now on its way to Sochi.

All this time, Graceful has traveled with an armed Coast Guard chaperone. It's crewed exclusively with FSO (Federal Protective Service) officers, which Navalny describes as Putin's personal army, just like Scheherazade. These are two more clues seemingly confirming Putin as the direct beneficiary.

Graceful is now called Kosatka, which means Killer Whale. It boasts improved amenities and even more luxurious interiors, thanks to the refit that the report estimates at $31.8 million, or 3 billion rubles. It's the kind of refit that would make the news even without the Putin association, too.

Graceful now has a custom pool that extends out on the water beyond the beach club. It cost $3 million to add and was referred to in documentation as "the Olympus project," which is most likely a nod to Olympia, Putin's first superyacht. It's 85 meters long and 25 meters wide (279 by 82 feet) and no deeper than 3 meters (10 feet), and it allows guests to bathe in the sea while still feeling like they're within the safe confines of the yacht.

The indoor pool, the one that converts into a dancefloor or a cinema, depending on the occasion, has also been refurbished. The his and hers main suites have been stripped to the bare walls and then put back together but with much fancier furniture, carpets, and fixtures. Fireplaces have been added to various lounges, the two helipads were retouched, and all deck furniture was replaced. Even the plates and cutlery are new now.

The amounts spent for these are impressive – and verge on shocking if you consider what's happening in the country right now. The price of three apartments in Russia for a coffee table. $32,000 on French wine. $6,000 for a backgammon set. Three armored umbrellas for $39,000. A single hairbrush in the main suite of Putin's lover was $120, which is 11,000 rubles at the current exchange rate and "almost a living wage" in Russia, as per the report.

Navalny also argues that Putin would have spared no expense to see this refit through, even if Graceful hadn't been his favorite vessel. His biggest and most expensive one, the $700 million Scheherazade, was seized in Italy last year, and chances are he won't be seeing it ever again. It simply does not do for a man like Putin not to have the fanciest, most luxurious superyacht to show off.