The U.S. Department of Justice is spending roughly $1 million per month on maintaining the 348-foot mega-yacht Amadea, seized from Russian billionaire Suleiman Kerimov in 2022. 

The DOJ plans to sell the $230 million boat owing to monthly care costs of $922,000, according to court records. CNBC reported that the Amadea, stationed in San Diego, California, spends $600,000 per month on crew pay, gasoline, and upkeep. Insurance costs $144,000, with dry-docking expenses of $178,000.These costs underscore the financial burden on the government amidst efforts to liquidate assets owned by sanctioned Russian individuals.

A Complex Matter

The legal tussle over Amadea mirrors broader challenges related to seizing and selling Russian oligarchs' assets in response to the Ukraine conflict. Despite calls to use profits from frozen Russian assets for Ukraine's war efforts, the process of proving ownership and facilitating sales has proven protracted and costly. 

Russian billionaire Eugene Shvidler and others contest the impoundment of their assets, adding complexity to legal proceedings. The U.S. government's request to seize Amadea in Fiji in April 2022 started the ownership dispute.

Although the U.S. claims Kerimov's ownership, lawyers for former Rosneft CEO Eduard Khudainatov oppose its sale, citing distressed pricing. They express a willingness to reimburse maintenance costs if the vessel is returned.

   (Photo : EUGENE TANNER/AFP via Getty Images) A harbor pilot boat cruises past the yacht Amadea of sanctioned Russian Oligarch Suleiman Kerimov, seized by the Fiji government at the request of the US, arrives at the Honolulu Harbor, Hawaii, June 16, 2022 .

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The U.S. contends Suleiman Kerimov used shell company transactions to conceal Amadea's ownership. Despite Khudainatov's claim, the U.S. rejects it, insisting he covered maintenance during the ongoing dispute. The government argues it's justified in selling Amadea to curb perceived "excessive" financial burdens as Khudainatov is not contributing to expenses.

Amadea, boasting six decks and a helipad, has languished in U.S. custody, transported from Fiji to Honolulu and then San Diego after Fijian authorities impounded it, according to Bloomberg. This legal wrangling underscores complex challenges tied to the ownership and disposal of assets linked to sanctioned Russian individuals amid geopolitical tensions.

Intensifying Pressure on Putin

Last month, the DOJ unveiled comprehensive legal actions targeting Russian oligarchs, escalating financial pressure on Russian President Vladimir Putin amid the Ukraine invasion. It announced arrests of "facilitators" tied to a sanctioned oligarch seeking to seize Miami luxury condominiums from another. 

An indictment addresses an official's alleged involvement in a sanctioned oligarch's yacht, emphasizing a guilty plea for money laundering, according to The Washington Post. These actions align with U.S. responses to Alexei Navalny's death. 

Uncertainties persist about the sanction's effectiveness amid Russia's economic growth. Ongoing energy sales and unfulfilled expectations of challenging Putin's authority prompt calls for stricter measures on Russian oil sales. 

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