Yachts hidden by straw man

Interest and schadenfreude continue unabated.

It has now been revealed that a "front man" may have hidden Russian yachts worth a billion dollars. In the race to seize the assets of sanctioned Russian billionaires, the US authorities are claiming that a Russian tycoon acted as a "front man" for two yachts worth billions. According to reports, this also includes the 700 million dollar superyacht "Scheherazade", which is associated with Russian President Vladimir Putin. On the South Pacific island of Fiji, the USA is now also trying to seize the 325 million dollar yacht "Amadea". Court documents there are said to reveal a "nest of offshore shell companies" that a yacht broker is using to conceal the true owners of the two ships, according to US officials - an allegation that the lawyers of the listed owner and the broker vehemently deny, of course.

The use of multiple layers of shell companies in offshore jurisdictions may well obscure the ultimate beneficiary of assets. The US authorities' efforts to enforce sanctions against Putin confidants are increasingly encountering this kind of secrecy, making the seizure of assets a protracted affair. A further complication is that Russian billionaires are known to operate on the basis of unwritten agreements or understandings. These naturally leave no written traces, which makes it much more difficult or impossible to provide evidence in court.

Given the sums involved, that's completely understandable - isn't it? Honny soit qui mal y pense.

Source: Bloomberg/Baker/Browning