Alfa Nero Force-Sold for $67 Million, but New Billionaire Owner Still Can’t Sail It

This is the story of the Alfa Nero superyacht, a custom Oceanco build delivered to the original owner in 2007 and later reportedly sold to Russian oligarch Andrey Guryev. Alfa Nero is one of the few sanctioned superyachts to have been force-sold at auction, and at the same time, a very good example of just how murky the legal waters around these sanctions are. Almost one month after it went under the hammer and a winning bid was chosen, it is still stuck in legal limbo: sold but not owned and unable to sail off into the sunset.

Alfa Nero was famous even before it became a frozen asset of the government of Antigua and Barbuda and before the year-long saga to get it out of state waters and into the hands of a new owner. At 269 feet (82 meters) and a reported original price tag of $120 million, it's far from the biggest or the most expensive privately-owned vessel out there. But it's still a gorgeous and instantly recognizable ship, boasting incredible amenities, like the first rear-facing convertible statement pool in the industry and gorgeous styling.

Most Oceanco builds are memorable and outstanding in their own way, either because of size, reported budget, propulsion technology, or amenities. Since 2022 though, many Oceanco custom projects have found themselves in the headlines for a reason that has nothing to do with the prestigious builder and everything to do with their direct beneficiaries – or owners, as we regular folk would call them.

March 2022 saw the publication of the first round of international sanctions against Russian oligarchs, a move that was meant to put (financial) pressure on Russian President Vladimir Putin and discourage him from pursuing his all-out attack on neighboring country Ukraine. Under sanctions, oligarch-owned luxury assets such as superyachts, expensive cars, real estate, or private jets would be seized – and could potentially be sold off by the seizing country, and the cash would either be used here or sent over as aid to Ukraine.

It's the latter part that's proven a sort of pipe dream, as Alfa Nero shows. This superyacht sailed into Antigua and Barbuda the same month that Guryev was sanctioned (March 2022) and was prevented from leaving until authorities established whether it had ties with a sanctioned individual or not. U.S. authorities were part of the investigation, with FBI agents being the first to board it.

Guryev, for one, denied he was the owner, insisting his only connection to the superyacht was that of a regular client who chartered it for vacations. A very textbook "I don't know where that incriminating item came from, it’s not mine" move, if you will.

In early 2023, local authorities announced that they could no longer cover the monthly expenses of the superyacht. It's a known rule in the industry that a boat is 10% of its cost in annual fees, so the bigger the boat, the higher the maintenance cost for it. This includes docking, fuel, maintenance and servicing, crew salaries, and other assorted fees.

When Alfa Nero was frozen, it carried a full crew, and not a single person onboard has been paid since. Estimates in the local media claim the state has paid more than $1.5 million out of pocket for Alfa Nero because no one stepped forward to claim ownership. So, pressed for cash, the government announced its forced sale, which would see them recoup that money – and then some.

In mid-June, Schmidt placed the winning bid for the superyacht, which had first been valued at $81 million. The hammer dropped at $67.7 million, which was still a very good deal, even given the lower state valuation. Schmidt was expected to pay and take delivery after a days-long interval granted for an appeal from the direct beneficiary and once local authorities lifted sanctions over the vessel itself so they wouldn't pass to the new owner.

In yet another twist, it is believed Guryev's daughter has claimed ownership and is now effectively blocking the change of ownership of the superyacht. As a close Putin associate, Guryev is on all sanctions lists, but his daughter is not. She's claiming to be the direct beneficiary of Alfa Nero, which would mean the Antigua government has no right to seize it, much less sell it at auction.

Consequently, the government is asking for a denial of an injunction relief filed by Guryev's daughter in a bid to end "the wasteful and frivolous litigation." Moreover, Information Minister Melford Nicholas says that they're "prepared to grant an indemnity to the buyer against that liability [which] will stay with Antigua and Barbuda," because "the government is certainly committed to executing the Alfa Nero sale."

In other words, Schmidt might still get to sail off on his new and highly controversial superyacht. If so, this will be the first successful case of a forced sale of a seized superyacht where the new owner is a U.S. citizen, and it might just mark a new and brighter chapter in the Alfa Nero saga.