Photo: Lurssen
These times will certainly be remembered in the history of the luxury yacht industry as a dark period – the sanctions targeting Russian oligarchs’ ultra-expensive toys had ripple effects in the entire industry. One of them is that shipyards are no longer allowed to accept payments from a customer who might be on the black list, which leaves them with massive unfinished vessels taking up precious space.
It takes years to deliver a luxury yacht to its owner, so anything that can reduce that waiting time is seen as a major advantage. The market is currently revealing an opportunity that’s probably unprecedented - a significant number of yachts that are under construction can no longer be delivered to the initial clients, which means they are up for grabs for a lowered price. Shipyards don’t need these huge pleasure crafts taking up the space of other new builds while also losing money. In these chaotic circumstances, offers for the unfinished superyachts are already pouring in, Bloomberg reports.
People in the industry are saying that a lot of the custom vessels that are currently being built are potentially meant for oligarchs since Americans and Russians own the largest chunk of the world’s superyachts. On the other hand, transferring the contracts could lead to potential issues for the shipyards if sanctions are lifted soon, and the ultra-rich that were previously targeted would want their under-construction luxury yachts back. Several industry representatives told Bloomberg that the situation is uncertain and that it caught everyone by surprise, which is why there are still many questions that need answers.
Another consequence of the spotlight on the oligarchs’ assets is that the superyacht industry itself is facing “an unprecedented public scrutiny” that could shake things up. Just when things were starting to go back to normal after the two-year crisis, Russia’s invasion of Ukraine came with massive financial ramifications for multiple industries.
For now, it looks like Russian moguls will also be losing the superyachts that they didn’t even get to enjoy, while other customers with big pockets get the chance to snatch some of these custom toys at a much better price.
People in the industry are saying that a lot of the custom vessels that are currently being built are potentially meant for oligarchs since Americans and Russians own the largest chunk of the world’s superyachts. On the other hand, transferring the contracts could lead to potential issues for the shipyards if sanctions are lifted soon, and the ultra-rich that were previously targeted would want their under-construction luxury yachts back. Several industry representatives told Bloomberg that the situation is uncertain and that it caught everyone by surprise, which is why there are still many questions that need answers.
Another consequence of the spotlight on the oligarchs’ assets is that the superyacht industry itself is facing “an unprecedented public scrutiny” that could shake things up. Just when things were starting to go back to normal after the two-year crisis, Russia’s invasion of Ukraine came with massive financial ramifications for multiple industries.
For now, it looks like Russian moguls will also be losing the superyachts that they didn’t even get to enjoy, while other customers with big pockets get the chance to snatch some of these custom toys at a much better price.
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