It has been said that in order to be rich enough to afford a yacht, you actually have to be able to afford ten yachts. The United States government is learning that lesson the hard way, and they are now trying to authorize a sale of one such craft that belonged to sanctioned Russian oligarch Suleiman Kerimov, because it's costing taxpayers nearly $1 million a per month.
The more expensive a yacht is, the more it costs to keep it in your possession, and Kerimov's craft, known as the Amadea, is one of the most expensive yachts in the world, having cost around $300 million. It was seized by authorities in May of 2022, and has been docked in San Diego since the following month, and now court filings reveal the hefty bill for keeping it that way: $600,000 in so-called "running costs," including maintenance, fuel, and $360,000 paying the contracted crew. Then there's another $144,000 for pro-rata insurance and $178,000 in dry-docking fees and other expenses. Altogether, the US Department of Justice says that maintaining the Amadea costs as much as $922,000 per month. The filing goes on:
"It is excessive for taxpayers to pay nearly a million dollars per month to maintain the Amadea when these expenses could be reduced to zero through [a] sale."
EUGENE TANNER/AFP via Getty Images
The process by which a seized yacht can be sold is a legally complex one, and prosecutors would have to prove Kerimov's direct ownership of the yacht before it can be sold. But CNBC reports that another Russian businessman, who has not been sanctioned by any international authorities, says he actually owns the yacht instead. And attorneys for this man, Eduard Khudainatov, have objected in court to a hasty sale of the craft on the grounds that it could push the sale price down, also arguing that the nearly $1 million in monthly maintenance costs are a pittance compared to its potential sale value.
However, Khudainatov's attorneys have refused to pay for any of those maintenance costs, instead stipulating a reimbursement for the over $20 million the government has paid so far provided it is returned to its purported rightful owner. That very ownership, of course, is being disputed by the US, so Khudainatov's offer has not been taken up and isn't likely to.
Even if the government does end up selling the Amadea, the proceeds from the sale would have to be held while the case between the Department of Justice and Kerimov is straightened out. And then the money would likely be contributed to the Ukrainian war effort.
0 Comments