Russian oligarch’s yacht valued at R$390 million to be auctioned

The yacht owned by a Russian tycoon valued at US$ 75 million (about R$ 390 million at the current price) will be auctioned in Europe. The boat belongs to Dmitry Pumpyansky, who was subject to Western sanctions because of the war between Russia and Ukraine, according to the US newspaper Business Insider.

The seizure of the yacht, called the Axiom, is an order of the Supreme Court of Gibraltar. The value of its sale will be divided among the oligarch’s creditors.

In most cases, the authorities cannot sell a seized yacht without first going through the legal part, burdening them with operating and maintenance costs, reaching between 10% and 15% of the vessel’s annual value.

Although owned by Pumpyansky, the yacht is managed by the management company Pyrene Investments. The complaint for the seizure to take place was presented by the US bank JPMorgan, which, in December 2021, lent US$ 22 million (R$ 114.5 million) to a company in the British Virgin Islands, which had Pumpyansky as a shareholder, through a Cypriot company.

The bank considered the Russian’s inclusion in the bank sanctions as a breach of agreement, as there is a chance that he will not return the money due to the freezing of his earnings. With this, the yacht is considered a guarantee.

Western officials targeted assets that belonged to Russian oligarchs, such as property, private jets, art and, ultimately, yachts. Turkey is a favorite destination for these targeted goods as it is where they are jurisdictionally safe.

An example of who carried out this escape was former Chelsea owner Roman Abramovich, who “hidden” his two yachts, valued at R$8.5 billion, in Turkish waters to avoid both being seized in possible penalties imposed by the British government.

Pumpyansky acquired pipeline conglomerate TMK before buying them in 2006, along with Sergei Popov and Andrei Melnichenko. TMK has supplied Russian state-owned gas Gazprom since 1998.

About Abhishek Pratap

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