Friday’s legal battle to seize the superyacht of Russian owner Fiji owned by $325 million was won by the United States. The case is now headed to the highest court in the Pacific.
This case highlights the difficult legal terrain the U.S. is on when it attempts to seize assets from Russian oligarchs all over the globe. While many citizens and governments support the war in Ukraine, some actions raise questions about U.S. jurisdiction.
Fiji’s Court of Appeal rejected Friday’s appeal by Feizal Hanniff, who represented the company that legally controls the superyacht Amadea. Haniff claimed that the U.S. was not authorized to seize the vessel under Fiji’s mutual aid laws. This argument was made until a court determined who actually owned the Amadea.
Haniff stated that he plans to appeal the decision to Fiji’s Supreme Court. He will also apply for a court order to prevent U.S. agents from sailing the Amadea to Fiji.
The appeals court ruled that the judgment would not be effective for seven days. This was presumably in order to allow for appeals.
The U.S. claims that their investigation has revealed that the luxury yacht, which is registered in Cayman Islands, was actually owned by Suleiman Kerimov (an economist and former Russian politician).
Kerimov made a fortune by investing in Russian producer Polyus of gold, Forbes magazine placing his net worth at $16 million. After he was detained in France for money laundering, the U.S. sanctioned him in 2018.
FBI linked Amadea to Kerimov through the alleged use code names and purchase of items such as a pizza oven or a spa bed by the Kerimov family. Task Force KleptoCapture launched in March to capture assets of Russian oligarchs and make Russia stop the war.
It measures 106 meters (348 feet) in length and is approximately the same length as a football field. It has a live lobster tank and a hand-painted piano. There’s also a swimming pool, and a large helicopter pad.
Haniff, who represents Millemarin Investments’ paper owner, says the owner is Eduard Khudainatov, another wealthy Russian who isn’t subject to sanctions. He was the former chief executive and chairman of Rosneft (the state-controlled Russian oil & gas company).
While the U.S. recognizes that Khudainatov appears to be the owner, they also claim that he is the paper owner of the Scheherazade superyacht. This superyacht has been linked to Russian President Vladimir Putin. The U.S. questions whether Khudainatov can afford two superyachts that are worth more than $1 million.
In a court affidavit, the FBI stated that Khudainatov was being held out to be the owner of two superyachts that are the largest in the world, and both linked to sanctioned people, suggesting that Khudainatov may be being used to hide the true beneficial owners.
U.S. officials claim that Kerimov purchased the Amadea in secret last year using shell companies. According to the FBI, emails proving Kerimov’s children were on board the ship this year were found by a search warrant executed in Fiji. The crew used code names such as G0 for Kerimov and G1 for his wife and G2 for his child.
According to the FBI, crew members discussed a possible “upcoming G0 Guest Trip” and noted that he would like the fastest jet skis — so they will need to purchase new jet skis.
Haniff appeals to the U.S. that it is based only on hearsay and rumors propagated by unnamed crew members. There’s also no evidence that Khudainatov could not afford two superyachts.
The yacht is still berthed at Lautoka harbor, in the heart Fiji’s sugarcane region.
