Sanctioned Oligarch’s Yacht Heads Home to Russia as Others Go Into Hiding

(Bloomberg) -- One of the world's biggest super yachts, reportedly owned by sanctioned Russian billionaire Alexey Mordashov, is headed home to the port of Vladivostok.

Other luxury vessels tied to oligarchs have abandoned popular Mediterranean hot spots, while many have simply disappeared in the wake of Western restrictions levied on some of Russia's richest citizens.

The scattering of Russian mega yachts comes after U.S. President Joe Biden said that the country and its allies are prepared to seize the boats, luxury apartments and private jets of wealthy, politically connected Russians. This month, the U.S. announced expanded sanctions, targeting several dozen oligarchs accused of enabling President Vladimir Putin's war in Ukraine.

“We are coming for your ill-begotten gains,” Biden said.

The 465-foot Nord -- a $500 million vessel that features two helipads, a cinema and 20 luxury cabins -- is currently in the South China Sea and headed to Vladivostok, a Russian port city near Japan. Other Russian-linked yachts are turning off their transponders, leaving European resort towns and sailing toward the Middle East, where they might encounter less scrutiny.

According to data compiled by Bloomberg, at least nine yachts connected to Russian tycoons have gone dark between Feb. 24 -- when the invasion of Ukraine started -- and March 11, when Biden announced additional sanctions against businessmen close to Putin, along with at least 47 of their family members and associates. Most of the vessels are reportedly owned by sanctioned oligarchs or those flagged by the U.S. as being close to Putin by the Treasury Department, while a few are owned by moguls not on sanctions lists.

International maritime regulations require all passenger ships, regardless of size, to broadcast their positions to other vessels and coastal authorities. The devices, called automatic identification system or AIS, are supposed to be in operation at all times to track vessels.

“There's no reason why their AIS transmissions should be off for days,” said Gur Sender, a program manager at Windward Ltd., which specializes in maritime risk and intelligence. “Even if you're in the middle of the ocean you have a satellite picking up your transmission once in at least eight hours. If you're a big yacht, it's in your interest to have it on so everyone can see the ship to prevent accidents.”

The European Union and U.K. have also announced sanctions on many of the same tycoons, with authorities in the U.S. Italy, France and Germany trying to locate their luxury boats. Italy seized a 530 million-euro ($580 million) super yacht owned by Russian billionaire Andrey Melnichenko. The authorities detained Gennady Timchenko's Lena in the coastal city of Sanremo, along with another of Mordashov's boats -- Lady M -- in Imperia. Meanwhile, metal magnate Alisher Usmanov's mega yacht, Dilbar, is stuck in Germany.

That's prompted tycoons to avoid the Mediterranean and Northern Europe, which is typically packed with mega yachts in the northern hemisphere spring and summer.

Russian Oligarchs' Yachts Head for Maldives as Sanctions Levied

The Middle East, with its easy access to the Indian Ocean, tops other regions for being the last known location of many sanctioned vessels. At least eight ships were last seen near the United Arab Emirates, Oman, or Saudi Arabia, according to vessel data analyzed by Bloomberg News.

Mega yachts owned by Russians account for as much as 10% of the global fleet, according to industry watcher Superyacht Group. Mordashov, a steel billionaire and Russia's third-richest man, parked the Nord in the Maldives and Seychelles over the winter, joining other Russian-owned yachts.

The vessel left the Seychelles on March 12, stopped briefly in Sri Lanka, and arrived in the Singapore Strait on March 22. The Nord is transmitting it is headed to Vladivostok and will arrive there March 29, data compiled by Bloomberg show.

Read this next: Broke Oligarch Says Sanctioning Billionaires Won't Sway Putin