Amadea superyacht auction faces legal storm

Amadea superyacht. Source: amadeaauction.com

The Amadea, a luxury superyacht once valued at $325m, is set to go under the hammer in the United States next month.

Yet, ongoing ownership disputes threaten to complicate the sale and deter interest from wealthy buyers, including those in the Gulf region. 

The 106-metre vessel, built by German shipyard Lürssen with interiors designed by French architect François Zuretti, was seized by the US Department of Justice in 2022 while docked in Fiji. American authorities allege Amadea belongs to sanctioned Russian billionaire Suleiman Kerimov, though official records list fellow Russian businessman Eduard Khudainatov, who is not sanctioned, as the owner. Khudainatov has filed multiple legal claims seeking to reclaim the yacht, the most recent on August 22. 

According to the official auction website bidders must place $10m in escrow and prove a net worth of at least $500m to qualify. The vessel, currently docked in San Diego, California, will be sold strictly “as is, where is.”  

Designed to host 16 guests and more than 30 crew, Amadea features an interior with extensive marble work, eight state rooms, a beauty salon, a spa, a gym, a helipad, a swimming pool and an elevator. It boasts a cruising range exceeding 8,000 nautical miles.   

However, experts warn that ownership rights could be contested outside US territorial waters. 

“You’re buying a floating lawsuit,” remarked Paul Stephan, a law professor at the University of Virginia, in comments to The New York Times.  

Former owners or their proxies could challenge new ownership in foreign jurisdictions, raising the risk of detention or seizure. Countries such as Turkey and the Maldives do not automatically recognise US asset seizures, with Turkish courts already showing willingness to entertain similar Russian property claims. 

Analysts warn that the Amadea’s unresolved ownership could complicate financing, insurance, and operations. Charter clients may avoid vessels under legal dispute, while captains could face restrictions on which ports would allow entry. Resale prospects are also weakened, as contested assets rarely command their full market value. 

Khudainatov’s legal team echoed these concerns. “We doubt it will attract any rational buyer at fair market price because ownership can and will be challenged in courts outside the United States,” said Adam Ford, spokesman for Khudainatov’s lead lawyer. 

The financial burden of upkeep is also considerable. Court filings show Amadea costs around $600,000 per month in maintenance, with an additional $140,000 for insurance. Insurers remain hesitant to cover disputed assets, often charging inflated premiums or declining coverage entirely. 

Beyond legal and financial hurdles, cultural and ethical factors may further reduce interest in the Gulf. Some institutions and business partners in the region regard seized assets as problematic under Islamic commercial principles, complicating any potential acquisition. 

Given these obstacles, industry observers expect limited global interest in the Amadea auction.