A Russian oligarch lost his court case against the United Kingdom government over his $55 million luxury megayacht

A Russian oligarch’s lawsuit against the British government regarding his $55 million megayacht was unsuccessful. Authorities boarded and seized the businessman’s vessel, which was invited to the United Kingdom for the global superyacht awards in 2021 despite not being on any sanctions list.

A affluent Russian business magnate has lost his legal dispute with the United Kingdom government over the confiscation of his £38 million ( $49 million) luxury superyacht. A London court sided with the government, rejecting Sergei Naumenko’s claim that the United Kingdom’s decision to suspend the 60-meter (197-foot) vessel “Phi” was illegal. Russian real estate broker Naumenko does not appear on any of the sanctions lists released by Western nations following the invasion of Ukraine. In a last-ditch effort to retrieve his brand-new superyacht, Naumenko decided to file a lawsuit against the United Kingdom’s Department of Transport, claiming he never engaged in political activities and has no ties to Putin. His attorney argued that the detention was a “disproportionate interference” with his property rights and that it was done solely to make the government appear stern to other yacht owners.

The British court dismissed the case because the seizure of the yacht was in the public interest. Judge Ross Cranston stated, “The Secretary of State is entitled to a wide margin of discretion in deciding how to exercise the detention power in pursuit of the government’s foreign policy objectives.” According to the ruling, the vessel was seized because it was “owned, controlled, or operated by a person connected with Russia.” The judge also stated that while the detention of the superyacht did infringe upon Naumenko’s “property rights,” it was in the greater public interest of the United Kingdom to have as “deep an impact as possible” on Russia through sanctions. Sir Ross determined that had “great wealth” and did not claim to be “suffering financial hardship” as a result of the confiscation of a “luxury superyacht.”

The Russian businessman stated through his attorneys that he is “disappointed” with the court’s decision and is evaluating his alternatives for appealing the verdict after his appeal was denied. This is the first ruling of its kind, and it will enhance the UK government’s ability to seize the assets of affluent Russians. According to a report by The Telegraph, very little is known about Sergei Naumenko, who is believed to be in his 50s and resides in the Ural Mountains in western Russia. Surprisingly, Naumenko has never used his $49 million megayacht. Shortly after concluding her maiden voyage to London in December 2021, Phi became the first yacht ever detained in British waters.

 

 

National Crime Agency officers boarding the Phi superyacht.

Phi’s unfortunate history -Phi was invited to the World Superyacht Awards in London in 2021. However, the crew was astonished when National Crime Agency officers boarded the yacht hours before it was scheduled to depart. Since then, the yacht has been in the United Kingdom. Nonetheless, the superyacht has also posed a problem for the authorities. According to estimates, Phi’s mooring fees alone have racked up a hefty cost of $150,000. In addition, the British government may have already paid approximately $5 million in maintenance costs since confiscating the ship in March of last year.

Royal Huisman, a Dutch shipyard, constructed the magnificent megayacht. Lawson Robb was responsible for the interior design of the vehicle, while Cor D. Rover Design was responsible for the exterior design. Phi has an aluminum hull and superstructure and is powered by two MTU engines that allow her to reach a maximum speed of 22 knots. The vessel can accommodate up to twelve passengers. It features a freshwater swimming pool that can be covered and sealed with the push of a button. Additionally, Phi’s lower deck lobby features a 300-bottle wine cellar with walls made of giant mirrors that create the illusion of a limitless corridor lined with wine bottles.