Gibraltar prepares for first auction of a Russian oligarch’s detained superyacht

theguardian.com:

A £65m superyacht of a Russian oligarch hit by sanctions will be auctioned off by the Gibraltar government on Tuesday, becoming the first of the luxury vessels to be sold off since restrictions were imposed on hundreds of rich Russians after Vladimir Putin’s invasion of Ukraine.

However, the 72.5-metre Axioma is not being sold for the benefit of the Ukrainian people but for a US investment bank, JP Morgan, which claims the yacht’s billionaire owner, Dmitry Pumpyansky, owes it more than $20m (£17m).

The vessel, which features six luxurious guest cabins, a swimming pool, a 3D cinema room, gym, jacuzzi and a fully equipped spa, was detained after docking in Gibraltar in March.

Pumpyansky, the owner and chairman of the steel pipe manufacturer OAO TMK, a supplier to the Russian state-owned energy company Gazprom, was subjected to sanctions by the UK, EU and the US after the invasion of Ukraine. The UK said the billionaire, who it said had built up an estimated £1.84bn fortune, was one of the oligarchs “closest to Putin”.

While dozens of superyachts suspected of being owned by oligarchs under sanction have been detained or confiscated across the world, Axioma is the only one that has been put up for sale.

However, the proceeds will not be paid to the people of Ukraine. The UK and other governments have suggested the sanctioned oligarch’s assets could be seized and used to assist Ukraine refugees.

However, in this case, the yacht was detained by the Gibraltar government after a legal claim from JP Morgan, which said Pumpyansky’s holding company Pyrene Investments owed it more than $20m.

JP Morgan said the fact the billionaire had been subjected to sanctions meant the terms of the loan had been breached because it legally could not