Oligarchs’ impounded yachts pose environmental and liability risk warns surveyor

Europe’s ports, harbours and marines face a “significant risk” from the growing number of mega yachts detained under sanctions against Russia unless action is taken to ensure they are properly maintained or deactivated. Not only is there an environmental risk from these large vessels being left unattended, there are also considerable liability concerns due to a likely lack of insurance. The warning comes from Netherlands-based marine surveyor Van Ameyde McAuslands whose safety fears have been raised by the number of mega-yachts believed to belong to Russian oligarchs that have been seized following the imposition of sanctions. It is estimated that yachts worth more than $16bn are currently being held at ports across Europe including in Finland, Norway, Spain, France and Germany. Recent examples include the $38m Phi that was seized in London’s Canary Wharf, the $75m Axiom seized in Gibraltar and the $540m SuperYacht A that was seized in Italy. “When a vessel is seized it may no longer be in class and under flag, and any insurance, including P&I and H&M, is likely to have already been revoked,” said Albert Weatherill, managing director, Van Ameyde McAuslands, UK. “From that moment, the yacht, by default, becomes a liability of the state. And without insurance, proper loss prevention measures need to be in place to avoid losses and claims. Potential litigation could run into millions of dollars if assets are not properly made safe or shut down correctly. These are not vessels that can be simply turned off and walked away from,” he added. The lack of insurance or classification is causing confusion over who should pay for the minimum manning and routine maintenance that is required or mega yachts and can typically exceed an annual cost of $50m. “If crews are not being paid and walk away, or if sanctions prohibit maintenance, what happens if there's a pollution incident? What happens if the vessel comes adrift or catches fire, if there’s theft or the vessel is sabotaged? There are too many unknowns, and in this industry, unknowns often equate to litigation,” said Weatherill. Van Ameyde McAuslands has stated that seizing authorities must be more aware of these risks and take immediate action when impounding the vessels, in accordance with Classification Society guidelines. “This will prevent any potential damage to machinery, internal cabins, valuables, limiting financial exposure and liability. It will also safeguard against any potential risk to the maritime infrastructure, the environment and the public at large,” said Weatherill. According to the surveyor, it is thought that none of the seized yachts to date have been prepared for lay-up or surveyed to prevent pollution or disruption to the port. “Manning, deterioration, damage, fire, theft, danger to people and property – these are all very serious issues,” said Weatherill. “When vessels are dormant for long periods, there is potential for things to go wrong – and when there is no insurance safety net to fall back on, it’s a big problem. We’re in uncharted territory.”

Oligarchs’ impounded yachts pose environmental and liability risk warns surveyor

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