German authorities seized the world’s largest superyacht following official confirmation that the vessel has links to Russian billionaire and business tycoon Alisher Usmanov.
The vessel was restricted from leaving its anchorage by German authorities on March 3, according to a senior Biden administration official with knowledge of the matter.
The official, speaking on the condition of anonymity, said last month that the yacht had not been physically seized but rather was not allowed to move from its location in the German port city of Hamburg. The person added that more measures would be taken later.
A German official confirmed to CNBC that the motor yacht was linked to Usmanov and therefore is subject to asset seizure.
The extraordinary yacht, named “Dilbar” after Usmanov’s mother, extends over 500 feet and is equipped with the largest indoor swimming pool ever installed on a private vessel. The Department of Treasury estimates that the current value of Usmanov’s yacht is approximately $735 million.
Usmanov and his superyacht entered the crosshairs of the U.S. and its allies last month when the Biden administration announced additional sanctions on Russian elites with Kremlin ties.
A Treasury official, speaking on the condition of anonymity, said any action taken by German authorities would not involve transferring the vessel to the United States under the Treasury’s Office of Foreign Assets Control, or OFAC, sanctions.
The sanctions listing Usmanov’s yacht as blocked property effectively means that any transactions related to the yacht — including maintenance, the hiring of the crew or the payment of docking fees — conducted with U.S. persons or in U.S. dollars are prohibited.