The U.S. may have boldly seized a Russian billionaire’s $325M superyacht and poured $30M of taxpayer funds into its upkeep. Now, another rich Russian has sued to claim it, and if he wins, America could lose the yacht and the millions it has spent on it.

The United States may have seized the $325 million Amadea superyacht in 2022 in a bold move. Still, boldness does not necessarily guarantee a good outcome, especially when $30 million of taxpayer money is on the line. The U.S. is grappling with this reality as it navigates the challenges of managing the luxurious spoils of sanctioned billionaires, case in point, the Amadea Yacht.

On Tuesday, January 21, the U.S. government appeared in court to argue that Suleiman Kerimov, a sanctioned Russian tycoon, is the true owner of the Amadea superyacht, which was seized in 2022. The $325 million vessel, held in San Diego since its departure from Fiji, has returned to its role as the centerpiece of legal and political drama.

The government seeks to force Kerimov to forfeit the yacht, but the case has become more complex due to the claim of another Russian, Eduard Khudainatov, who insists he is the rightful owner. Khudainatov, unsanctioned and a former head of Russian oil producer Rosneft, is widely regarded by the Justice Department as a “straw owner.” His name has also surfaced in connection with another massive yacht, the Scheherazade. A hearing this week, led by U.S. District Judge Dale Ho, will determine Khudainatov’s standing and ownership of the Amadea.

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For the U.S., the stakes are high. Since taking custody of the yacht in 2022, taxpayers have shouldered a staggering $750,000 monthly maintenance cost, amounting to $30 million, including $5.6 million spent on dry dock repairs. If the U.S. government fails to secure the yacht’s forfeiture, it will lose all the money spent maintaining it, compounding the already substantial financial burden on taxpayers.

The Lürssen-built, six-deck superyacht boasts opulent features such as an infinity pool, silk carpets, and a design requiring constant air-conditioning. This luxury resulted in a $112,665 fuel expense in December 2022 alone.

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Other costs include $60,000 on fuel, $334,009 in crew salaries, $25,800 for gangway watch, and $52,717.08 for crew provisions. Smaller items, like $1,000 for iPhone 11s for bridge captains and $988.42 for uniforms, add to the growing costs.

The U.S. government is eager to sell the Amadea, but legal hurdles remain. Justice Department attorney Rachel Doud stated that Khudainatov commissioned the yacht and sold it to Kerimov in 2021. However, until ownership is resolved, the U.S. risks losing millions, making this battle over the Amadea not just a legal challenge but also a fight to protect taxpayer dollars.

Interestingly, the tiny island nation of Antigua managed to sell the Alfa Nero with much greater ease compared to the United States and even used the funds to reduce part of its fiscal deficit. Perhaps the two nations need to exchange notes when it comes to the case of the Amadea.