At the end of February 2022, Russian troops rolled into Ukraine, triggering one of the longest and most violent (and still ongoing) armed conflicts in Europe in recent years. The responses of other countries included sanctions against Russian oligarchs, whose billions are believed to be funding Putin’s war, as the invasion has come to be called.
As of March this year, various countries, including members of the European Union, the U.S. and the UK, started seizing assets of these Russian oligarchs known to be associates of Putin. The idea behind the sanctions was that putting pressure on the billionaires and effectively cutting short Putin’s money supply would convince (force?) him to end the war.
Legally speaking, there is no precedent for seizures of this magnitude and on such a large scale. So the immediate effect of sanctions was that many of those multi-million assets that were frozen or downright seized ended up in storage, with local governments paying for their maintenance. Because there is no legal framework, governments can’t sell these assets yet – as of the time of press, the only seized superyacht to sell is Axioma, a $75 million beauty once owned by oil magnate Dmitry Pumpyansky, seized in Gibraltar and auctioned off so a bank could recoup a defaulted loan.
This means that, after a very enthusiastic and enthusiastically-applauded wave of sanctions, there are now billions of dollars worth of yachts, superyachts and megayachts slowly bobbing away in docks or put into dry-docking, eating up millions of dollars a month in taxes and maintenance fees. That’s taxpayers’ money, just to be clear.
Photo: Yacht Charter Fleet
But they might not stay put for much longer: in what could be an emerging trend, oligarchs are fighting back, whichever way possible. We’ve already seen Alisher Usmanov trying to get back his seized $600 million megayacht Dilbar, by asking the Council of the European Union to overrule sanctions. We’ve also heard that the same Pumpyansky may be acting through an interested third-party to get Axioma back, because the rumored buyer is actually a longtime business partner of his. Alexey Kuzmichev is also shooting his shot.
In March, two of Kuzmichev’s yachts were frozen in France, in Cote D’Azur and Cannes. La Petite Ourse and La Petite Ourse II are small vessels, especially compared to the gigantic Dilbar, measuring 26.23 meters and 17 meters (86 feet and 55.7 feet), respectively. Together, they’re priced under $100 million, and they’re being held by the French government because Kuzmichev, who is worth $6.8 billion, is one of Putin’s closest associates and one of the most powerful men in Russia.
Philippe Blanchetier, Kuzmichev’s attorney, has filed a lawsuit against the French government, arguing that the billionaire should be allowed to use his own yachts if he wanted to. Frozen property means that the asset can’t be sold off or rented, but can still be used for personal use – and Kuzmichev has other assets that he still uses this way, including real estate and an entire fleet of cars. By comparison, a seized asset is one over which the original owner no longer has any right.
“If you own an asset for your personal use, like a yacht, you have the right to make use of it even though it's frozen,” Blanchetier tells Reuters. “I don't know why one should make a difference when it's a yacht.”
Photo: Yacht Charter Fleet
The attorney elaborates more on the topic to Bloomberg, saying that what the French government is doing is “legal heresy.” “Immobilizing a ship isn’t a freezing measure; it’s like a seizure,” he explains. “You can no longer move the ship; you’re dispossessed of the ship.”
To neither media outlet does Blanchetier acknowledge the fact that, while a car can be used for the purpose of fleeing and evading authorities, a yacht – even one of a comparatively smaller size – can go farther than any automobile. It can also “disappear” more easily, and is harder to intercept and stop.
Despite their smaller size, neither of the Ourse-s is what you’d call a “boat.” Both ships were delivered by Wally, on an in-house design and naval architecture, with the second delivery being a smaller take on the first one. La Petite Ourse was completed in 2014, and offers accommodation for 10 guests and five crew. It is a luxury lightweight yacht with a semi-displacement hull, and twin diesel Caterpillar engines that take it to a top speed of 15 knots (17.2 mph / 27.8 kph). At a speed of 10 knots (11.5 mph / 18.5 kph), range is of 3,000 nautical miles (3,452 miles / 5,556 km).
The verdict in Kuzmichev’s legal action will be heard on October 5. Whatever it is, it will definitely set a precedent for these unprecedented legal measures.
Elena has been writing for a living since 2006 and, as a journalist, she has put her double major in English and Spanish to good use. She covers automotive and mobility topics like cars and bicycles, and she always knows the shows worth watching on Netflix and friends. Full profile
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