After months of preparations the Russian president Vladimir Putin has launched a major military
operation against Ukraine a Russian invasion of Ukraine created sanctions unlike anything
Russia had ever seen from the west as a result of these sanctions we look at the crippling
costs of millions of euros a month the Italian government are paying to keep assets frozen.
As Russian tanks rolled over Ukraine's border in february 2022
the west looked at ways to retaliate without starting world war III a raft of unprecedented
sanctions were placed on Russia by the US the EU and the UK plus other western countries
to try to make them reconsider Russia no stranger to sanctions from the west could
not have expected the sanctions to be as expansive as they were pressure would be put on the people
who are close to Vladimir Putin and in some cases members of the Russian political system
Russians known to have benefited from the relationship with the Russian president
or who are benefiting from the resources taken out of Ukraine in the occupied territory before
the invasion Russian president Vladimir Putin summoned 40 of the most important
business leaders in Russia to the Kremlin included in this group was Andrey Melnichenko.
owner of one of the largest fertiliser companies and one of the largest energy companies in the
world belgenko has a worth according to Forbes in 2022 of 11 billion dollars Mr Melnichenko owns 2
super yachts the first a 119 meter or 390 foot yacht called motor yacht A and a new 142 meter
or 465 foot sailing yacht called simply sailing yacht A- the older yacht was in the safe waters of the
Maldives at the time of the sanctions however the other newer Sailing Yacht A was in Trieste
in Italy at a shipyard undergoing repair work to her forward mast the vessel was
out of the water and was a sitting duck unable to sail away as the forward mast was missing
on the 11th of march just 3 days after the sanctions hit Mr Melnichenko
the Guardia of Finanza or the Italian financial police boarded sailing yacht in Trieste and handed
over arrest papers for the vessel to the captain the rest of the yacht estimated to be worth
over 550 million dollars meant that the Italian government was now responsible for all the bills
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guarantee okay back to the show as the Italian regulation 109-2007 says that the asset must be
returned to the owner in the same condition in which it was at the time of the freezing
days after the vessel was arrested by the Italian authorities both Melnichenko's yachts lost their
flag state as they were deregister by the Isle of Man shipping registry they also had
their Lloyd's classification withdrawn all as a result of the sanctions this meant both vessels
would also lose their insurance as to be ensured you must have a flag state and classification
the yacht was still in the dry dock she had been occupying at the time of the arrest this meant the
shipyard was bleeding money as they were unable to use that facility so the shipyard began to
apply pressure to the Italian government to move the giant sailing yacht the government agreed to
move the vessel however as the yacht now had no insurance the costs of damaging the vessel whilst
refloating and moving the boat would fall on the government the government's security committee
postponed the decision on moving the boat until a new insurance policy could be attained
the government was now paying the salaries of approximately 30 crew members working on board
the cost of this is around 200,000 euros per month approximately 205,000
just for salaries nothing more eventually the giant yacht the largest assisted job ever built
would be moved once that insurance was paid for and remember the policy is to cover a vessel worth
half a billion dollars the Italian government was now on the hook for close to one million euros
per month -as the insurance policy is believed to have cost several million dollars per year -
the costs for the upkeep of sailing yacht a work out at approximately 20 to 30, 000 euros per day
for one super yacht -after approximately 100 days from the freezing order they had already spent
more than 3 million euros on the vessel almost 3.1 million dollars and sailing yacht is not the
only asset arrested by the Italian government- in fact it is one of many which includes a 116
million euro or 180 million dollar property in Sardinia owned by Alexi Mordashov and a property
on the same island owned by Alicia Usmanov owner of Dilbar the government also has to provide
correct maintenance on these properties and the list goes on another yacht motor yacht Lady M
seized an Imperia also owned by Alexei Mordashov the Atlanta in San Remo owned by Gennady Timchenko
and the latest yacht to be frozen by the Italian authorities is the massive 140 meter or 459
foot behemoth Sheherezade claimed to be owned by the former head of Rosneft Edward Cutenatov
which authorities believe him to be a proxy owner for the real beneficial owner Russian president
Vladimir Putin Sheherezade was stopped after reportedly preparing to leave a shipyard in marina
de Carrara after a refit period estimated to be valued at an eye-watering 660 million euros or 670
million dollars with a crew of 40 the monthly bill for salary alone is approximately 250,000 euros
or 253,000 and with insurance and other costs most likely another 1 million euros per month
and as the yacht is inside the Italian C group shipyard facility
the government is most likely paying for that space also so the fees for the yacht nicknamed
Putinjot could be costing the Italian government 1.5 million euros per month
add these figures together with all the other yachts and properties currently seized or frozen
as the Italians seem to prefer calling it and the bill is possibly 10 million euros a month
or more the money being paid out by the authorities for the upkeep will hypothetically
be recouped when the assets are returned to their owners however the longer the wall goes
on the more they have to pay out with no sign of an end the government is musing selling the
assets to recover their money the problem however is with the legislation mentioned earlier 109 2007
which was issued for use to fight the financing of terrorism and as such has limitations in its reach
the sale of assets could result in a lawsuit for millions so the Italian government is talking
about changing the legislation to make it easier for them to dispose of these financial anchors
it is uncertain whether any sale would happen the fact is there are only a handful of people
in the world with the kind of wealth needed to purchase vessels like sailing yacht or Sheherezade
and they probably have the sense to stay well clear
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