Why Are Governments Seizing Yachts?

In an international pressure campaign against Russia, authorities have seized over a half-dozen superyachts belonging to billionaire oligarchs allied with Russian President Vladimir Putin. European countries have seized the most yachts so far, but the U.S. Justice Department has launched a task force aiming to seize Russian yachts. President Biden warned Russia’s richest billionaires and business elite that the United States will join Europe to find and seize their yachts, luxury apartments, and other items.

The global effort to punish Russian officials and some of their family members has sanctioned Russian oligarchs and some of their family members as punishment for the Ukrainian invasion. The U.S., European, and Ukrainian governments have suggested that the sale of yachts, private jets, and other items would help finance Ukraine. Swift action to impound palatial boats became a symbol of western resolve after the invasion of Ukraine.

A mega-yacht seized by U.S. authorities from a Russian oligarch is costing the government nearly 1 million a month to maintain, according to the U.S. government. The U.S. government spends more than 7 million a year to maintain a superyacht it seized from a sanctioned Russian oligarch. While it has been able to seize two of them with the assistance of foreign governments, it has yet to file a civil forfeiture action against any of them. Under the law, prosecutors can consider freezing the asset or seizing it, which requires a probable cause standard and potentially a warrant.