Tycoon Owner of PHI Superyacht Sues Government Over Its Unlawful Seizure

And that's exactly what PHI is: a brand-new, gorgeous, record-breaking, custom superyacht that has been frozen in dock at Canary Wharf in London for more than a year, eating up money without doing anything, and what's worse, for no reason at all. At least, that's what its owner is claiming in court.

As announced in May this year, PHI's direct beneficiary, i.e., owner, is taking the British government to court in a bid to get his superyacht back. PHI has been the apple of discord for months prior to this as well, almost shortly after it was frozen in dock in early 2022 during the initial wave of over-enthusiastic sanctions against Russian oligarchs.

PHI is a spectacular vessel and was bound to attract attention whichever it went, though, this time, it was not the kind of attention its owner was hoping for. It was designed and built by Holland-based shipyard Royal Huisman with a clear automotive inspiration in the aggressive bow and the combination of sharp angles and curvy lines in the superstructure. PHI looks like it means business, and it acts like it, too: it's a highly efficient superyacht that operates quietly and smoothly and packs incredible luxury amenities inside.

The design is by Cor D. Rover on the naval architecture of Perry van Oossanen's XL Fast Displacement Hull Form but interpreted according to the Golden Ratio. This makes PHI stand out from afar because it's not your typical "wedding cake" superyacht with classic lines and is not white. It also stands out on the water because it's fast and energy efficient, as well as smooth and quiet – so anecdotally quiet that guests have to look out the window to see if it's moving, even when it's traveling at 22 knots (25.3 mph/40.7 kph), its maximum speed.

Onboard, PHI offers all the trappings of the one-percenter life, from an innovative freshwater pool that doubles as a sports court and features an advanced filtration system that helps with saving water, and an infinity wine cellar, to spectacular interiors that foster calm and relaxation. The 495 GT of interior volume on a LOA (total length) of 58 meters (192 feet) makes PHI the world's largest superyacht in the 500 GT category.

PHI travels – or traveled, for the short while it did – accompanied by a matching shadow yacht, aptly called PHI Phantom, built by Alia Yachts. Phantom carries all the toys the guests on PHI might need or want, from a tender to inflatables and other water toys, so the yacht itself is not cramped with gear. You can't have zen when you're cramped.

In late 2021, shortly after delivery, PHI sailed into for the London World Superyacht Awards judging panel and, while there, to receive some minor touch-ups. When sanctions against Russian oligarchs went into effect, it was still there but getting ready to sail out within days. It never did; then-Minister of Transport Grant Shapps barred it from leaving and declared it frozen, even though ownership had not been established yet.

It would later emerge that PHI is owned by Sergei Naumenko, a Russian property developer who is not on any sanctions lists. Earlier this year, Naumenko announced plans to sue to get PHI back, and this month's hearing saw his attorney arguing that the seizure was unlawful, unmotivated, and only done to help the government "look tough." Naumenko is asking for his boat back and is probably also thinking of damages.

"Disproportionate action against individuals cannot be justified by a generalized desire to appear tough, whether that message is intended for consumption by the domestic electorate or elsewhere," Nigel Griffin, Naumenko's lawyer, wrote in court filings obtained by Bloomberg. Naumenko is not sanctioned and is not an associate of President Putin, so seizing his superyacht makes no sense – while also violating his right to "peaceful enjoyment of possessions," as stipulated by the European Convention on Human Rights.

In response, a lawyer for the government agency noted that Naumenko's wealth is whatever proof was needed that he's a Putin ally since you can't get rich in Russia without "showing loyalty and directly or indirectly benefiting from the Russian regime." His name might not be on the sanctions list (and it's not, neither in the UK nor in other countries), but he's still a Russian oligarch and complicit in what Russia is doing in neighboring country Ukraine. As such, you can't depoliticize superyacht ownership in his case. Moreover, the seizure of PHI will discourage other millionaires like Naumenko from funding Putin's war.

The case is ongoing, so we'll probably hear more about it in the following weeks. In the meantime, PHI remains stuck: blocked from leaving but still incurring expenses for docking and maintenance. Typically, a superyacht costs at least 10% of its value annually, so at a reported $50 million price tag, PHI "eats up" $5 million per year in fees and maintenance. With seized superyachts, these costs are transferred onto the local taxpayer unless the owner gets the boat back.

Grab some popcorn if you're into superyacht watching because this is bound to get even more interesting.