Case: US v. M/Y Amadea, 23-cv-09304, US District Court, Southern District of New York (Manhattan).
Three years following the seizure of the 106-meter superyacht Amadea, in the wake of the 2022 Russian Invasion of Ukraine, the opening arguments of the evidentiary hearing to determine the true beneficial owner of the vessel took place last week. The hearing is held by U.S. District Judge Dale Ho.
The United States government took to the court to argue on the yacht’s proprietorship, a roadblock in the authorities’ plight to sell the vessel – which is costing the US taxpayer an amount in the neighborhood of 600-000-$750,000 a month in maintenance and insurance fees, according to various reports. However, the US remains resolute about the owner of the vessel, sanctioned Russian businessman Suleiman Kerimov. However, another Russian businessman has been fighting to take ownership of the Amadea, proclaiming to be the true ultimate beneficial owner ever since he commissioned the yacht: Eduard Khudainatov.

Khudaintov, not sanctioned by the US, is the “straw owner” of Amadea to cover for Kerimov’s ownership status, the Justice Department argues – although they explain that he should be responsible for its hefty fees – and has no legal grounds to fight for possession of the vessel. The Government believes that the yacht was sold to Kerimov in September 2021 through intermediaries, while Khudainatov only held the title of the yacht due to Kerimov’s previous sanction designation in 2018.

Meanwhile, Khudainatov’s lawyer, Adam Ford, argues that the sale was never completed, but the agreement between the businessman was a loan.

It should be noted that the court need not determine the owner of Amadea, although the claimant must have legal grounds to challenge the U.S. Government’s seizure and sale of the vessel.
Amadea was seized in Fiji, per request of the U.S., and has been imprisoned in San Diego since April 2022. With fees racking up to a total of $30 million thus far, Judge Ho denied to grant the government permission to sell the yacht, due to her “excessive maintenance costs” in June 2024 – with proceeds going towards fighting the case.
The closing arguments of the hearing are expected to take place in February 2025.