COMMENT
No one wins wars
Michael Howorth discusses what’s in store for the yachts that have been seized by the various authorities across the globe
the word ‘superyacht’ is being mentioned on an almost daily basis by the BBC and the FT. Even the Daily Mail, the one newspaper that frequently mentions superyachts, has stopped detailing how many gold plated taps a yacht has on board.
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Public interest in sanctioned superyachts is soaring and making superstars of those who are reporting the arrests that prevent them from sailing. YouTube videos that have been, up until now, made on an occasional basis and presented in a rather boring north of England monotone drawl, are now compulsory viewing for many thousands of subscribers. Will he ever need to return to his day job as an engineer on board a superyacht?
People around the world have been fascinated while watching a yacht, arrested
ormally international cross border skirmishes have little impact on the superyacht industry but war, following Russia’s invasion of Ukraine has changed all that. Suddenly,
Brokerage houses who, in the past, have boasted how well they value their Russian clients have suddenly gone very quiet on the subject. There was once a time when many had web pages in Russian, English and French. Today those same Russian language pages seem to have mostly disappeared. Even shipyards are not immune. Two Russian members of the supervisory board of a Dutch yacht builder were forced to step down recently, the company citing, “developments of the current international situation.”
in the Pacific. She was subsequently boarded by armed American agents. They then hoisted the stars and stripes at her stern and promptly sailed off to Hawaii. Now that she has arrived, rumour has it, those who now claim she is their property, plan to sell her off. But who will want to buy such a yacht whose name is so tainted by events? (Remember Lady Ghislaine? She was once the property of Robert Maxwell and was very difficult to sell). The new owner of this American seized yacht might forever end up looking over his shoulder in fear of someone claiming the sale to be illegal and threatening to snatch her back!
Then there was the yacht, ironically launched as Red Square, that recently sailed into Gibraltar and was immediately arrested. Suddenly, that yacht was repossessed by the finance house who held the mortgage. They now have the unenviable task of selling off a tainted superyacht whose value must surely be severely depressed by the events.
“Superyachts should be viewed as symbols of success – not icons of oligarchy. These mighty vessels are portals for the immediate and direct redistribution of wealth.”
Benjamin Maltby a much quoted superyacht lawyer believes that no matter what, the long-term impact of the war has on superyachts can only be positive. A partner with Keystone Law, he says, “Almost without fail, whenever I’ve been meeting with a captain or owner on board, sitting somewhere aft, while moored stern-to, you’ll hear a British tourist point to the largest yacht in the harbour and proclaim knowledgably yet without fact, That’s an Abramovich yacht, that is!” Yet the truth is, Russian owners account for less than 10% of the total market. Maltby adds, “Superyachts should be viewed as symbols of success – not icons of oligarchy. Irrespective of our industry’s image, the fact is that these mighty vessels are portals for the immediate
and direct redistribution of wealth.” Maltby goes on to predict that selling the seized yachts appears to be the best option but warns that will only be possible where local laws allow for this to happen. Even then, he cautions, “There would still be the risk of any such sale not being recognised in other countries.”
Equally possible, is the scenario following the end of the war. (It
can’t go on forever!) Once hostilities finally cease, who is to say Russian owners will not then sue those who seized their yachts in the first place and demand compensation for loss of use? And that’s my point! In the superyacht industry no one side is going to win this war! Except perhaps the lawyers! But isn’t that the rule whatever the scenario?
ONBOARD | SUMMER 2022 | 5
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