World’s second largest sailing yacht A, Lady M, the Scheherazade, Lena Yacht, along with three more superyachts have all been moored in Italy owing to seizures. These assets of Russian oligarchs have been impounded by officials since spring 2022. According to France 24, the nation has spent $35 million on the maintenance of these luxury vessels. From docking fees, paying crew, fuel charges, and more, it all falls on the Italian Ministry of Finance for the upkeep of seven such luxury vessels. The publication shared information on the superyacht Lady M, belonging to Russian tycoon Alexei Mordochov worth $25.5 billion. The vessel is moored at Imperia, in northern Italy and has been seized since March 22, 2022.
The upkeep of this frozen asset falls on the Italian state that has been spending around $13,000 in mooring fees during winters, and $14,000 in summers every month. Another $11,000 is paid every month for electricity which is required to keep the air-conditioning running so the interiors are not ruined.
There is more to maintaining a pleasure craft than the expenses mentioned above. These essential expenses include crew, fuel, insurances, and annual inspection of the ships to maintain their conditions. Even the most basic care costs the Ministry of Finance at least $54,000 annually for the maintenance of Lady M.
It should be known that the vessel is worth approximately $71 million which means the affluent owner spends anywhere between $7-$10 million in keeping his ship in shape. As the nation has spent over $35 million in the upkeep of these seven luxury motor yachts, it would like to officially confiscate them to resell them.
As per the law, these floating mansions are still the property of the Russian tycoons which does not allow governments to simply sell them off. Lawyer Andrew Saccuci, representative of an undisclosed Russian oligarch, stated, “We’re talking about a temporary freeze, these assets have not been confiscated. Seizing them permanently would be problematic because that would go against the individual’s fundamental right, one of which is the right of ownership. The state cannot appropriate private property arbitrarily.” The seven immobilized yachts in Italian ports are burdening the government. In total, the assets seized by the Italian officials, which include luxury yachts, private planes, and luxury villas, are worth almost $2.5 billion.
These huge sums of money that are simply devoured by immobile vessels can be put to much better use. For example, $35 million is the funds the Italian government invested in the olive oil sector. Italy is the world’s second-largest producer of olive oil, after Spain. The same amount of money can be effective in bolstering the quality and quantity of production, along with promoting the “Made in Italy” brand in export markets.
