US wins case to seize $325 million Russian superyacht in Fiji, sails it away

WELLINGTON, New Zealand (AP) — United States won a legal battle on Tuesday to seize a Russian-owned superyacht in Fiji and wasted time in taking command of $325 million vessel and sailing it away from South Pacific nation.

court ruling represented a significant victory for U.S. as it encounters obstacles in its attempts to seize assets of Russian oligarchs around world. While those efforts are welcomed by many who oppose war in Ukraine, some actions have tested limits of American jurisdiction abro.

In Fiji, nation’s Supreme Court lifted a stay order which h prevented U.S. from seizing superyacht Amea.

Chief Justice Kamal Kumar ruled that based on evidence, chances of defense lawyers mounting an appeal that top court would hear were “nil to very slim.”

Kumar said he accepted arguments that keeping superyacht berd in Fiji at Lautoka harbor was “costing Fijian government dearly.”

“ fact that U.S. authorities have undertaken to pay costs incurred by Fijian government is totally irrelevant,” judge found. He said Amea “sailed into Fiji waters without any permit and most probably to eve prosecution by United States of America.”

U.S. removed motorized vessel within an hour or two of court’s ruling, possibly to ensure yacht didn’t get entangled in any furr legal action.

Anthony Coley, a spokesman for U.S. Justice Department, said on Twitter that superyacht h set sail for U.S. under a new flag, and that American authorities were grateful to police and prosecutors in Fiji “whose perseverance and dedication to rule of law me this action possible.”

In early May, Justice Department issued a statement saying Amea h been seized in Fiji, but that turned out to be premature after lawyers appealed.

It wasn’t immediately clear where U.S. intended to take Amea, which FBI has linked to Russian oligarch Suleiman Kerimov.

Fiji Director of Public Prosecutions Christopher Pryde said unresolved questions of money laundering and ownership of Amea need to be decided in U.S.

“ decision ackwledges Fiji’s commitment to respecting international mutual assistance requests and Fiji’s international obligations,” Pryde said.

In court documents, FBI linked Amea to Kerimov family through ir alleged use of code names while aboard and purchase of items such as a pizza oven and a spa bed. ship became a target of Task Force KleptoCapture, launched in March to seize assets of Russian oligarchs to put pressure on Russia to end war.

106-meter (348-foot) -long vessel, about length of a football field, features a live lobster tank, a hand-painted pia, a swimming pool and a large helip.

Lawyer Feizal Haniff, who represented paper owner Millemarin Investments, h argued owner was ar wealthy Russian who, unlike Kerimov, doesn’t face sanctions.

U.S. ackwledged that paperwork appeared to show Eduard Khudainatov was owner but said he was also paper owner of a second and even larger superyacht, Scheheraze, which has been linked to Russian President Vlimir Putin.

U.S. questioned wher Khudainatov could really afford two superyachts worth a total of more than $1 billion.

“ fact that Khudainatov is being held out as owner of two of largest superyachts on record, both linked to sanctioned individuals, suggests that Khudainatov is being used as a clean, unsanctioned straw owner to conceal true beneficial owners,” FBI wrote in a court affidavit.

Court documents say Amea switched off its transponder soon after Russia inved Ukraine and sailed from Caribbean through Panama Canal to Mexico, arriving with over $100,000 in cash. It n sailed thousands of miles (kilometers) across Pacific Ocean to Fiji.

Justice Department said it didn’t believe paperwork showing Amea was next heed to Philippines, arguing it was really destined for Vlivostok or elsewhere in Russia.

department said it found a text mess on a crew member’s phone saying, “We’re t going to Russia” followed by a “shush” emoji.

U.S. said Kerimov secretly bought Cayman Island-flagged Amea last year through various shell companies. FBI said a search warrant in Fiji turned up emails showing that Kerimov’s children were aboard ship this year and that crew used code names — G0 for Kerimov, G1 for his wife, G2 for his daughter and so on.

Kerimov me a fortune investing in Russian gold producer Polyus, with Forbes magazine putting his net worth at $14.5 billion. U.S. first sanctioned him in 2018 after he was detained in France and accused of money laundering re, sometimes arriving with suitcases stuffed with 20 million euros.

Khudainatov is former chairman and chief executive of Rosneft, state-controlled Russian oil and gas company.