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Suleiman Kerimov’s Pricey $300 Million Yacht Targeted for Forfeiture by US Authorities

U.S. Officials Are Looking to Seize Suleiman Kerimov's $300 Million Yacht

Samantha McGuireOctober 23, 2023

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The United States declared its intention to confiscate a yacht in San Diego, claiming its ownership to be that of the blacklisted Russian billionaire Suleiman Kerimov, in a formal complaint submitted on Monday. But on that same day, a different Russian businessman, Eduard Khudainatov, who is not under sanctions, sued the US government, claiming ownership of the boat and demanding its return.

KEY FACTS

The United States declared its intention to confiscate a yacht in San Diego, claiming its ownership to be that of the blacklisted Russian billionaire Suleiman Kerimov, in a formal complaint submitted on Monday. But on that same day, a different Russian businessman, Eduard Khudainatov, who is not under sanctions, sued the US government, claiming ownership of the boat and demanding its return.

Suleiman Kerimov and/or those operating on his behalf are accused of violating U.S. sanctions by using U.S. financial institutions to pay “hundreds of thousands” of dollars in maintenance fees for the yacht.

Since May 2022, when the conflict in Ukraine began, the ship has been berthed in San Diego, California. The Justice Department has applied for permission to seize the ship from the U.S. Southern District court in New York.

Khudainatov filed a complaint against the government on Monday, claiming that he is the yacht’s true owner and that Suleiman Kerimov never had a valid transfer of ownership. He is pursuing legal action to get his yacht returned.

On Monday, Khudainatov filed a lawsuit against the government, asserting that he is the rightful owner of the yacht and that it was never legitimately transferred to Suleiman Kerimov. He is seeking the return of his yacht through the legal process.

As part of his legal defense, Khudainatov, the former president of Rosneft Oil, produced a letter. This letter certifies that he is not facing US penalties, an indictment, or involvement in any civil or regulatory activities, and it also states that the Justice Department’s Task Force KleptoCapture has ended its criminal investigation against him. He contends that the yacht ought to be given back to him as a result.

KEY BACKGROUND
Trained as an economist, Suleiman Kerimov gained most of his income by investing in Polyus, the biggest gold producer in Russia. Following Russia’s invasion of Ukraine in March 2022, he was subject to sanctions from the UK and the EU. In reaction to the invasion, the Department of Justice formed Task Force KleptoCapture in March 2022 to impose penalties against Russian oligarchs and their assets. In 2018, the Treasury Department levied penalties against Kerimov after coming to the conclusion that he had benefited from Putin’s government and had been a major contributor to Russia’s nefarious actions.

CONTRA
Khudainatov’s legal team claims that the US government prepared a false and willfully misleading affidavit to support their unlawful seizure warrant request. They say the US administration didn’t look for any concrete proof of wrongdoing but rather singled out the yacht because of its size, opulent features, and Russian ownership after the Russian invasion. Regarding a request for comment, a Suleiman Kerimov representative has not yet responded.

Targeted for Forfeiture by US Authorities

“The filing of this complaint exemplifies that the United States takes sanction evasion seriously and will use all tools at its disposal to ensure that sanctioned individuals are held accountable for their crimes,” US Attorney Damian Williams said in a press release.

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