Oligarchs Assets

Stunning Yacht Axioma Owned by Dmitry Pumpyansky Seized And Auctioned for $37.5 M By JPMorgan

Yacht Axioma Seized And Auctioned for $37.5 M By JPMorgan

Stunning Yacht Axioma Owned by Dmitry Pumpyansky Seized And Auctioned for $37.5 M By JPMorgan

A super yacht Axioma linked to a sanctioned Russian Oligarch Dmitry Pumpyansky fetched $37.5 million at auction in Gibraltar in August 2022 after it was sold at the behest of creditor JP Morgan.

The yacht Axioma was seized in Gibraltar in March 2022 after US bank JP Morgan claimed owner Dmitrievich Pumpyansky did not pay a £17m ($20m) loan.

The sale’s proceeds – $37,500,055 – would go towards settling the ship’s debts to creditors, and anyone with additional claims .

Why Was Yacht Axioma Seized ?

The yacht Axioma, which was originally named Red Square, was owned by Russian oligarch Dmitry Pumpyansky. It was available for rent to millionaires for up to £465,000 per week, plus expenses. Pumpyansky was the owner and chair of steel pipe manufacturer OAO TMK, which supplies the Russian state-owned energy company Gazprom. The 58-year-old, who has an estimated net worth of £1.84 billion, has been sanctioned by the UK, EU, and US.

JPMorgan had provided a $20 million loan to Dmitry Pumpyansky through a shell company ( PYRENE INVESTMENTS LTD ) to buy the yacht. He was unable to keep up with the payments because he was sanctioned by Britain and the European Union after the invasion of Ukraine.

Gibraltar, which is a British overseas territory, had banned all Russian-linked vessels and sanctioned individuals from entering British waters following the invasion of Ukraine. Under Gibraltar law, UK sanctions are automatically applied in Gibraltar. The Gibraltar government reportedly cleared the yacht Axioma to enter on Monday, March 21, 2022, after confirming that it would be arrested in connection with an admiralty claim filed in the Supreme Court.

Yacht Axioma reportedly owned by Dmitry Pumpyansky at the harbour of Gibraltar, March 21 2022
Axioma reportedly owned by Dmitry Pumpyansky at the harbour of Gibraltar, March 21 2022

The Gibraltar Government confirmed the arrest of the Axioma and explained its decision to allow the vessel to enter there. A spokesperson for No.6 Convent Place, the headquarters of Her Majesty’s Government of Gibraltar said: “The Captain of the Port today granted permission, after consultation with the Chief Minister as minister with responsibility for sanctions, for the entry into BGTW of a vessel that was confirmed to be the subject of an arrest action by a leading international bank in the Supreme Court of Gibraltar.

“Given the ultimate beneficial ownership of the vessel, permission would not normally have been granted for the vessel to enter BGTW. However, this has been exceptionally allowed in the interests of creditors with proper claims against the vessel and who seek the assistance of the Admiralty jurisdiction of the Supreme court to enforce such claims.”

What Happened to Yacht Axioma After Been Seized?

While dozens of superyachts suspected of being owned by sanctioned oligarchs have been detained or seized around the world, Axioma is the only one that has been put up for sale. However, the proceeds will not be paid to the people of Ukraine, despite suggestions from the UK and other governments that sanctioned oligarchs’ assets could be seized and used to assist Ukrainian refugees.

In this case, the yacht was detained by the Gibraltar government after a legal claim from JPMorgan, which said that Pumpyansky’s holding company Pyrene Investments owed it more than $20 million. JPMorgan argued that the terms of the loan had been breached because it legally could not accept loan repayments from Pyrene due to Pumpyansky’s sanctions, and asked the Gibraltar courts to detain and sell the yacht.

Auction Of Yacht Axioma In Gibraltar

In March 2022, the $75 million, 236-foot Axioma was arrested in Gibraltar. Her owner, Russian billionaire Dmitry Pumpyansky, had been added to U.S. and UK sanctions lists in connection with the invasion of Ukraine.

Axioma was seized on behalf of creditor JP Morgan, not on behalf of a law enforcement agency, and her sale proceeded in the same manner as for any vessel arrested for unpaid debts. Gibraltar’s admiralty courts are known for the efficient processing of vessel seizures, and the full procedure was finished in about five months. 

Auction of Axioma attracted 63 bids at a sale in Gibraltar.

On August 23,2022, Axioma was sold at a private auction by the Admiralty Court of Gibraltar. The auction was “as is, where is,” meaning that the buyer accepted the yacht as it was and in its current location. Howe Robinson handled the sale.

After repayment of the debt to JP Morgan and the cost of detaining the yacht, any surplus funds from its sale will be frozen in an account with the Supreme Court in Gibraltar, Nigel Hollyer said. He lead the auction on behalf of the Supreme Court of Gibraltar’s Admiralty marshal.

The sale was finalized on September 27 after an enhanced due diligence process. The Court confirmed that the funds will remain in Court for a period of 60 days from the date the sale is advertised in Lloyd’s List. The successful bidder paid $37.5 million into court. The identity of the buyer was also withheld.  

A spokesperson for the Court said, “Any person with a claim against the vessel, or the proceeds of sale thereof, needs to submit a claim before the expiration of the said period.”

JPMorgan is understood to have donated $10m (£8.45m) to help Ukrainian refugees, while its Warsaw office is in the process of hiring 50 refugees to a training programme while they are displaced.

Where Is Yacht Axioma Now ?

The yacht Axioma has left Gibraltar on 2 February 2023 and was en route to Turkey under new ownership, according to her automatic identification system (AIS). This is the first voyage the yacht has undertaken since her arrest in March of last year and subsequent auction in September, when she fetched $37,500,055 after 63 bids. Currently its still in Turkey.

FAQs on Yacht Axioma

What is Yacht Axioma?

Yacht Axioma is a 72.5-meter superyacht that was built in 2013 by Dunya Yachts. She is owned by Russian oligarch Dmitry Pumpyansky.

Why was Yacht Axioma auctioned off?

Yacht Axioma was auctioned off in September 2022 after being detained by the Gibraltar government in March 2022. The yacht was detained in response to a legal claim from JPMorgan Chase, which said that Pumpyansky’s holding company Pyrene Investments owed it more than $20 million.

Who bought Yacht Axioma?

The buyer of Yacht Axioma has not been publicly disclosed. However, it is known that the yacht was sold at a private auction for $37.5 million.

Where is Yacht Axioma now?

Yacht Axioma is currently in Turkey under new ownership.

What is the significance of Yacht Axioma being auctioned off?

The auction of Yacht Axioma is significant because it was the first time that a superyacht owned by a Russian oligarch had been sold at auction since the invasion of Ukraine. The auction is a sign that the West is willing to target the assets of Russian oligarchs in response to the war in Ukraine.

What does the auction of Yacht Axioma say about the future of luxury yachts?

The auction of Yacht Axioma is a sign that the luxury yacht industry could be hit hard by the war in Ukraine. Many Russian oligarchs own luxury yachts, and the West is likely to continue to target their assets in response to the war. This could lead to a decline in demand for luxury yachts, and it could also make it more difficult for Russian oligarchs to buy and sell luxury yachts.

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