US And Europe Increase Sanctions Due To Moscow's Invasion Of Ukraine, Cargo Ships To Russian Conglomerate Superyachts Seized

Superyacht Amore Vero. (Wikimedia Commons / Abxbay)

JAKARTA - French authorities seized four cargo ships and one luxury superyacht linked to the oligarchs, as the United States and other governments stepped up sanctions against the Russian conglomerate on Thursday over Moscow's invasion of Ukraine.

Customs officials seized the yacht of Rosneft boss Igor Sechin, which is on a list of US and European Union sanctions, before attempting to escape from a French Riviera port, France's finance minister said.

At least five other superyachts belonging to the Russian billionaire are anchored or sailing in the Maldives, an island nation in the Indian Ocean without an extradition treaty with the United States, according to ship-tracking data.

Washington, the European Union, and others have said they will target the assets of the oligarchs, who have amassed wealth and political influence under Russian President Vladimir Putin.

In a statement, Rosneft declined to comment on the French move, saying Sechin was not aware of any company linked to it owning the yacht.

On Thursday, the United States imposed full-blown sanctions against eight oligarchs and other officials, as well as several companies and members of their families, over the invasion, which President Putin called a "special operation" in Ukraine.

"We want him (Putin) to feel pressure, we want people around him to feel pressure", White House spokeswoman Jen Psaki told reporters.

Superyacht Dilbar. (Wikimedia/Commons Axou)

Meanwhile, a French official said as many as 510 people could be subject to an asset freeze there.

In Germany, the nearly $600 million luxury yacht belonging to Russian billionaire Alisher Usmanov, also on the EU sanctions list, is docked at the Hamburg shipyard. A spokesman for Hamburg's economic authority said there were no plans for the yacht to be delivered to its owner, without providing further details.

He denied that the government had seized the Dilbar superyacht which was more than 500 feet (150 meters) high. As Forbes has reported on Wednesday, Dilbar has undergone a refit at the Blohm + Voss shipyard and that the German government has frozen the assets.

Although he is not the target of British sanctions, Russian billionaire Roman Abramovich said on Wednesday he would sell Chelsea Football Club and pledged to donate the money from the sale to help victims of the war in Ukraine.

Meanwhile, British Foreign Secretary Liz Truss vowed: "there is no place for President Putin's cronies to hide." Foreign Minister Truss said Britain was working on a further list of individuals, amid criticism that Prime Minister Boris Johnson's government has taken too long to target individuals linked to Putin who owns homes and other assets in the country.

A government source said Britain could change the law to make it easier to impose sanctions.

The European Union (EU), the United States, Canada, and Britain are pooling efforts to examine how oligarchs can find ways to bypass sanctions and also to establish the role of trust companies in holding assets, an EU official said on Thursday.

The task force will aim to close any visible gaps, the official said.

"Thanks to French customs officials who imposed EU sanctions on those close to the Russian government", Finance Minister Bruno Le Maire said on Thursday after French customs seized the 88-meter (190-foot) Amore Vero (True Love) before leaving the port.

The superyacht was seized in the Riviera port of La Ciotat and belongs to a company whose main shareholder is the head of Rosneft Sechin, a close ally of Putin, the finance ministry said.

The Amore Vero arrived on January 3 and is scheduled to stay until April 1 for repairs, the ministry said in a statement, adding that on Wednesday customs officials had noted that the cruise ship was "taking steps to set sail immediately, with no repair work over".

French customs authorities have so far seized four cargo ships linked to the wealth of the Russian oligarch, another French finance ministry official said.

In total, 510 people or entities could be subject to asset freezes in France, added the official, who spoke to reporters on condition of anonymity.

Meanwhile, at least five superyachts belonging to the Russian billionaire appear to have found temporary shelter in the Maldives, a luxury holiday destination. The billionaire is on an existing sanctions list or faces a call to be added.

The superyacht Clio, owned by Oleg Deripaska, founder of the US-approved aluminum giant Rusal in 2018, docked in the capital Male on Wednesday, according to shipping database MarineTraffic.

The Superyacht Titan, owned by Alexander Abramov, co-founder of Russian steelmaker Evraz, arrived on Monday. Three more cruise ships belonging to the Russian oligarchs were spotted sailing in Maldives waters on Wednesday, data showed. They include the 88 meters (288 ft) tall Nirvana owned by Russia's richest man, Vladimir Potanin.

Most of the ships were last seen anchored in Middle Eastern ports. In this regard, a spokesperson for the Government of the Maldives did not respond to requests for comment.