The U.S. Is Desperate to Sell a Seized Megayacht as It Can't Afford to Keep Paying for It

That's the harsh reality U.S. authorities were faced with after the initially enthusiastic seizure of the megayacht Amadea, a Lurssen build with a reported price tag between $325 million and $400 million. After more than a year in U.S. waters, federal prosecutors are now desperately trying to sell it, asking a judge to grant permission for an auction even before exact ownership has been established.

Amadea is one of the biggest captures after the invasion of Ukraine by Russian forces and the subsequent wave of sanctions implemented by third parties, meant to discourage Putin and his oligarchs from pursuing the war. It was initially arrested in Fiji at the behest of the U.S. and was then moved to Hawaii and eventually San Diego, where it remains moored to this day.

During this time, the U.S. has been paying for it, and the expenses are nothing to scoff at. In fact, at over $7.2 million a year or $600,000 a month, they're so considerable that federal prosecutors are trying to expedite the sale just so they can cut losses.

Amadea, like most Russian-oligarch-owned vessels, comes with a complicated paper trail that buries ownership through various shell companies and at least one straw owner. In this case, the straw owner is believed to be Eduard Khudainatov, who also claimed to be the owner of the $700 million megayacht Scheherazade and who has been disputing the seizure since 2022.

The direct beneficiary of Amadea, or what we laymen would call "the owner," is billionaire Suleiman Kerimov, a.k .a. "The Russian Gatsby." Both are Russian, but the important difference is that Kerimov is sanctioned by the U.S., while Khudainatov is not (though he is on EU sanction lists). In other words, if Khudainatov's ownership could be confirmed, the U.S. would have no right to hold onto his asset.

In court documents filed last weekend in Manhattan, federal prosecutors are saying that maintenance for Amadea costs over $600,000 a month and that, at this point, it makes no sense for the taxpayer to keep footing the bill. This money goes to crew salaries, as the vessel is forced to maintain a skeleton crew, fuel, food, cleaning up, docking and assorted fees, and maintenance.

As is the case with any seized asset, the U.S. is obligated to keep Amadea in the same condition as it was when it was seized. But it can't sell it unless prosecutors prove beyond any doubt that the owner is a sanctioned individual. The latest filing is looking to skip over this step and head directly to the auction.

The money from the auction would "eventually" be sent to Ukraine as aid, according to one trade publication. In other words, the U.S. is desperately trying to rid itself of an obligation it incurred with the seizure – to ditch the spectacular Amadea like the hot potato that it is. A very expensive, 348-foot (106-meter), super luxurious potato, but a potato nonetheless.