The US government is facing significant financial strain, with a Russian oligarch’s megayacht racking up nearly $1 million in monthly expenses following its seizure, according to court documents. The $300-million Amadea, believed to belong to sanctioned Russian billionaire Suleiman Kerimov, boasts luxurious amenities including a helipad, swimming pool, and movie theater. Initially impounded by Fijian authorities in April 2022, the 348-foot vessel now sits docked in San Diego, prompting the government’s urgency to offload it due to exorbitant maintenance costs.
Costly Maintenance Breakdown
As disclosed by an assistant chief in the US Marshals Service, the Amadea is incurring approximately $600,000 in monthly expenses. This encompasses $360,000 for crew salaries, $75,000 for fuel, and $165,000 for various upkeep needs, such as maintenance, waste disposal, crew meals, and miscellaneous outlays. However, recent court filings have unveiled additional expenses, bringing the total monthly outlay to a staggering $922,000. These new costs include $144,000 for insurance and dry-docking fees amounting to $178,000 per month.
Ownership Dispute and Legal Battles
The legal quagmire surrounding the Amadea involves another Russian billionaire, Eduard Khudainatov, who contests Kerimov’s ownership claims, asserting that he is the rightful owner of the yacht. Unlike Kerimov, Khudainatov is not subject to sanctions. Lawyers representing Khudainatov have objected to the government’s attempts to auction off the vessel. CNBC reports that Khudainatov has proposed reimbursing the government for the $20 million already spent on maintaining the yacht if it’s returned to him. However, he has stipulated that he will not cover ongoing costs as long as the government persists in its efforts to sell the Amadea.
The saga of the Amadea underscores the complexities and financial burdens associated with seizing high-value assets linked to sanctioned individuals, posing significant challenges for governments striving to manage such assets effectively and minimize taxpayer expenses.
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