Abandoned former Cayman-flagged superyacht to be auctioned

A Russian oligarch-owned superyacht, until recently flagged to the Cayman Islands, that has been anchored at an Antiguan harbour for over a year will be auctioned if the owner does not claim it.

The Government of Antigua and Barbuda plans to declare the luxury 82-metre yacht, bought for US$120 million in 2014, a hazard to shipping and to the harbour where it is moored.

Antigua’s Attorney General Steadroy Benjamin said the government will publish a notice in the press for ten days allowing the owner to come forward.

This will satisfy the requirements under the law for a “forced sale”, he said in the country’s latest Cabinet minutes on Wednesday, 1 March.

If the owner fails to claim the boat in that time, it will be sold to the highest bidder.

“The vessel has been in Antiguan waters for more than a year and has remained in the same position ever since,” the minutes said.

“Its staff has not been paid and neither has the provider of its fuel (that it has consumed, since arriving).”

According to Cayman’s Maritime Authority, the yacht in question (ALFA NERO, IMO Number 1009367) left the Cayman Islands Ship Registry on 27 October 2022.

The Maritime Authority added it has “no knowledge of the yacht registering in any another jurisdiction after it left the Cayman Islands”.

Russian billionaire owned

The Alfa Nero superyacht, built by Oceano for Theodore Amglowas, was launched in 2007. It can accommodate up to 12 guests in three double cabins, two VIP cabins and a master suite.

According to the US Department of the Treasury, the current owner is Russian billionaire Andrey Guryev, former head of fertiliser producer PhosAgros. His estimated net worth is US$10.7 billion.

A treasury press release in August 2022, just months after the start of the Russia-Ukraine war, spoke of its Office of Foreign Assets Control (OFAC)’s new sanctions targeting “Kremlin-connected” elites, businesses, and the yacht.

“These elites and businesses operate in economic sectors that generate substantial revenue for the Russian regime, including from sources outside of Russia,” the release read.

The sanctions meant that the Alfa Nero was “blocked” and must be reported to the OFAC, however, the yacht had shut off its location tracking hardware in order to avoid seizure.

‘Opulent lifestyles’

“As innocent people suffer from Russia’s illegal war of aggression, Putin’s allies have enriched themselves and funded opulent lifestyles,” said Secretary of the Treasury Janet L. Yellen.

“The treasury department will use every tool at our disposal to make sure that Russian elites and the Kremlin’s enablers are held accountable for their complicity in a war that has cost countless lives.

“Together with our allies, the United States will also continue to choke off revenue and equipment underpinning Russia’s unprovoked war in Ukraine.”

The US Department of the Treasury said Guryev is a known close associate of Russian president Vladimir Putin and previously served in the government.

He was appointed to the Federation Council of the Federal Assembly of the Russian Federation in 2001, where he served until 2013.

Guryev owns the Witanhurst estate, which is the second-largest estate in London after Buckingham Palace. The United Kingdom has also introduced sanctions against him.

The flag of a vessel indicates where it is registered, which can affect taxes on the purchase and operation of the yacht, how it is crewed, where it can sail and times of inspection.

While registration costs are a matter for individual flag states, the qualification and training of seafarers along with the number and frequency of safety inspections and surveys are determined by international conventions that apply to all ships operating outside of their flag state’s immediate jurisdiction.

Editor’s note: This story was updated on 14 March to reflect that the yacht in question recently left the Cayman Islands Shipping Registry and to clarify the rules governing ships operating in waters outside of their flag state.