US moves to seize $156 million, 324-foot superyacht Madame Gu linked to a Russian Oligarch in Dubai
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The United States is looking to seize a fancy $156 million superyacht belonging to a sanctioned Russian oligarch and parliamentarian now docked in Dubai.
The 324-foot-long Madame Gu, which has a helipad, gym, beach club and elevator, has become a test of the close partnership between the United States and the United Arab Emirates.
The ship, with a striking blue hull and an annual paint price of $1 million, is owned by Andrei Skoch, one of the richest men in Russia’s Duma.
A steel magnate, Skoch’s fortune is valued at around $6.6 billion, according to Forbes. Attempts to contact Skoch for comment were unsuccessful.
It is not the first of Skoch’s properties that the United States has seized control. In August, a judge authorized the United States to seize a $90 million jet belonging to the oligarch.
The US is looking to seize a fancy $156 million superyacht belonging to a sanctioned Russian oligarch and MP now docked in Dubai.
Featuring a helipad, gym, beach club and elevator, the 324-foot Madame Gu has become a testament to the close collaboration between the United States and the United Arab Emirates.
The vessel, with a striking blue hull and an annual paint price of $1 million, is owned by Andrei Skoch, one of the richest men in Russia’s Duma.
It is not the first of Skoch’s properties that the United States has seized control. In August, a judge authorized the United States to seize a $90 million jet belonging to the oligarch
Madame Gu’s June appearance in Dubai showed how Russian oligarchs have parked their assets in the United Arab Emirates even as Western governments impose increasing sanctions and US pressure mounts on its Persian Gulf ally to do the same in middle of the invasion of Ukraine.
One of a dwindling number of countries where Russians can still fly direct, the UAE has chosen not to impose sanctions on Moscow or freeze the assets of Russian billionaires who relocate to the emirates.
Since the invasion began, 14 percent of all private flights leaving Russia have landed in Dubai, up from 3 percent before the invasion, according to the The New York Times.
Senator Sheldon Whitehouse, D-Rhode Island, said of the United Arab Emirates: ‘It’s frustrating when you see huge assets that are out there and it looks like the country is not cooperating. It would be nice if there was a more common cause against Putin while he is busy bombing hospitals and schools.”
Whitehouse has sponsored legislation that would send proceeds from the sales of seized Russian assets to help rebuild Ukraine.
It is not the first of Skoch’s properties that the United States has seized control. In August, a judge authorized the United States to seize a $90 million jet belonging to the oligarch
Senator Sheldon Whitehouse, D-Rhode Island, said of the United Arab Emirates: ‘It’s frustrating when you see huge assets that are out there and it looks like the country is not cooperating. It would be nice if there was a more common cause against Putin while he is busy bombing hospitals and schools.
The US Treasury first sanctioned Skoch in 2018 for his role in the government and alleged “long-standing ties to Russian organized criminal groups, including time spent running one of those companies.”
In early June, the Treasury designated Madame Gu, along with her helicopter, barring US entities from doing business with the superyacht. Skoch is also sanctioned by the European Union.
The Cayman Islands-registered Madame Gu was flying an Emirati flag when she arrived in Dubai, a display of wealth dramatic enough to rival Dubai’s famous Queen Elizabeth 2 cruise ship-turned-hotel floating right next door.
It was also moored right next to the $200 million mega-yacht Dubai, owned by the city-state’s ruler, Sheikh Mohammed bin Rashid Al Maktoum.
Satellite photos from Planet Labs PBC show the Madame Gu at her mooring in Port Rashid as of March 25.
The United Arab Emirates, home to glitzy Dubai and oil-rich Abu Dhabi, has refused to take sides in Russia’s war against Ukraine and welcomed the influx of Russian money into its beachfront villas and hotels in luxury.
The invasion of Ukraine sent Russia’s wealthiest businessmen and politicians scrambling to save their significant assets from what became a growing network.
Superyachts linked to Russian oligarchs have loomed large in a Western crackdown aimed at putting pressure on President Vladimir Putin to change course in Ukraine.
Authorities across Europe and elsewhere have seized yachts owned by Russian billionaires sanctioned on a US sanctions list.
In early June, for example, the US won a legal battle in Fiji to seize a $325 million Russian-owned superyacht.
Russian billionaire Andrei Skoch’s superyacht ‘Madame Gu’ pictured in Port Hercules for the 26th Monaco Yacht Show
The superyacht Madame Gu, owned by Russian MP Andrei Skoch, is docked at the Port Rashid terminal in Dubai, United Arab Emirates.
Other US allies, including Germany, the UK, France and Italy, are involved in trying to collect and share information with Washington against sanctioned Russians, the White House says.
An apparent influx of superyachts and private planes linked to Russia’s wealthy has so far avoided scrutiny in a country that has long been a magnet for foreign money, legal and otherwise.
But his increasingly visible presence appears to be frustrating Washington. In June, a US court ordered the seizure of two planes worth more than $400 million believed to belong to sanctioned Russian oligarch Roman Abramovich.
The Boeing 787 Dreamliner of the former owner of Chelsea FC is now in the United Arab Emirates, according to the court filing.
At a House hearing in June, US Assistant Secretary of State for Near Eastern Affairs Barbara Leaf acknowledged that the United Arab Emirates had become a safe haven for Putin-linked Russian oligarchs.
The White House has cosponsored a Senate bill that would send proceeds from seized Russian assets to help rebuild Ukraine.
At a House hearing in June, US Assistant Secretary of State for Near Eastern Affairs Barbara Leaf acknowledged that the United Arab Emirates had become a safe haven for Putin-linked Russian oligarchs.
“I’m not at all happy with the record right now and I plan to make this a priority to push for a better lineup of, shall we say, effort,” said Leaf, who was once an ambassador to the United Arab Emirates.
Treasury Under Secretary Wally Adeyemo, one of the top US coordinators of the Russian sanctions strategy, visited Dubai and Abu Dhabi to meet with Emirati financial officials this week.
Adeyemo warned of the challenges that have arisen amid the war against Ukraine “both for governments that seek to hold Russia accountable and for financial institutions like yours that are responsible for implementing the financial sanctions we impose.”