Weeks after the U.S. government took to court to prove the true owner of the 106-meter superyacht Amadea, seized in the wake of the Russian invasion of Ukraine, the U.S. Justice is disbanding the sanctions previously instituted. Task Force KleptoCapture, launched under the Biden administration in March 2022, was implemented in an effort to target Russian oligarchs with Kremlin ties. As part of the measures, Russian assets were detained – including the superyacht in question.
Now, the yacht may be returned to its claimed owner after a directive released by Attorney General Pam Bondi explained the new direction of the sanctions measures. “This Policy Requires a fundamental change in mindset and approach,” with resources now directed towards countering international gangs and drug cartels. The US Government went to court on Friday to fight for possession of the vessel amdist the disbandement of the sanctions tools.
The U.S. took possession of Amadea in March 2022 as it was docked in Fiji and has been imprisoned in San Diego ever since. The government has unsuccessfully attempted to sell the vessel – a request denied by the court – as its maintenance costs the U.S. taxpayer around 750,00 per month, totaling $3 million dollars so far.
During the opening arguments for a hearing that took place for Amadea, the government argued about the yacht’s proprietorship, which was a roadblock in the authorities’ plight to sell the vessel. However, the US remained resolute about the owner of the yacht: sanctioned Russian businessman Suleiman Kerimov. However, the issue lay with the involvement of another Russian businessman battling the U.S. and proclaiming to be the ultimate beneficial owner ever since he commissioned the yacht: Eduard Khudainatov.
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Khudaintov, not sanctioned by the US, is the “straw owner” of Amadea, the Justice Department argues, to cover for Kerimov’s ownership status – 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, contends that the sale was never completed, but the agreement between the businessmen was on a loan.