Wealthy Russian businessman loses fight over detained superyacht

Sergei Naumenko wanted a judge to make an order setting aside a Government decision to detain the Phi following Russia’s attack on Ukraine.

The superyacht Phi was detained last spring (PA) (PA Wire)

A wealthy Russian businessman has lost a High Court fight with the Government over the detention of his superyacht.

Sergei Naumenko wanted a judge to make an order setting aside a Government decision to detain the Phi as part of a sanctions regime following Russia’s invasion of Ukraine in 2022.

But Sir Ross Cranston has ruled against him after considering evidence at a High Court hearing in London.

Mr Naumenko argued that then transport secretary Grant Shapps was wrong to decide to detain the yacht in spring 2022.

He argued that the detention was a “disproportionate interference” with his property rights.

The judge heard how following Russia’s invasion of Ukraine, the National Crime Agency and Border Force Maritime Intelligence Bureau investigated vessels with connections to Russia – and the Phi had been identified as a “vessel of interest”.

Mr Shapps had exercised detention powers, on the grounds that the yacht was “owned, controlled or operated by a person connected with Russia”, and decided that detaining the yacht was in the “public interest”.

Sir Ross concluded that the detention of the yacht interfered with Mr Naumenko’s “property rights”.

But he indicated that the public interest in the UK’s attempt to have as “deep an impact as possible” on Russia through a sanctions regime was greater.

He said Mr Naumenko had “great wealth” and did not claim to be “suffering financial hardship” because of the detention of a “luxury superyacht”.

Sir Ross heard that the Phi, which measures 58.5 metres – nearly 200 feet, had been moored at South Dock in the West India & Millwall Docks, in London, in December 2021 – and remained there.

She came to London partly for tax reasons (she was to be onward exported into the EU), and partly at the invitation of a British magazine to participate in the World Superyacht Awards

Sir Ross Cranston

“London was her first port of arrival following her delivery as a newly-built vessel by the Royal Huisman Shipyard in the Netherlands,” said the judge in a written ruling published on Friday.

“She came to London partly for tax reasons (she was to be onward exported into the EU), and partly at the invitation of a British magazine to participate in the World Superyacht Awards.

“Following that winter stopover, she was due to leave London for Malta on 28 March 2022, followed by post-delivery warranty works in Mallorca, and a chartering season in the Mediterranean.”

The judge said there was no evidence that Mr Naumenko held any political or administrative position in Russia, nor evidence that he had any connection with Russian President Vladimir Putin.

He said Mr Naumenko had not been “designated” under sanctions regulations.