Huge yachts, private planes, luxury villas and flashy cars. All belonging to Russian oligarchs whose assets in Italy have been frozen since the invasion of Ukraine two years ago. But this is turning out to be extremely costly for the Italian state.

Imperia

In northern Italy, specifically in the port of Imperia, a luxury yacht named the Lady M has become the center of attention. Owned presumptively by Alexei Mordasov, a wealthy Russian businessman, the Lady M has been constrained under the sanctions imposed by the European Union in response to Russia's invasion of Ukraine. With a length of 63 meters and valued at €65 million, the yacht represents a significant portion of Russian assets frozen by the Italian state. This is part of a broader effort which has seen Italy freezing assets including yachts, private planes, and luxury villas owned by Russian oligarchs since the conflict began.

The cost of maintaining these assets, however, has become burdensome for the Italian state. Specifically, the Lady M's maintenance has imposed financial strains, including mooring fees which range from €12,000 in the winter to €13,000 in the summer months, alongside €10,000 monthly for utilities such as electricity and water. Maintenance expenses, including crew, insurance, fuel, and annual engine checks, can exceed €50,000 annually. Italy has spent approximately €32 million over the past two years on the upkeep of such frozen assets.

There's a growing desire within the Italian government to officially confiscate and resell these assets to recuperate some of the maintenance costs. However, legal challenges make this difficult. Andrea Sacucci, a lawyer representing a Russian oligarch with frozen assets in Italy, emphasizes that these are temporary freezes, not permanent confiscations. He argues that permanent seizure would violate individual rights, particularly the right to ownership. 

This situation underscores a complex dilemma facing the Italian authorities as they navigate the legal and financial challenges of managing these frozen assets amidst ongoing international tensions. The Kremlin has already signalled its readiness to contest any attempts to permanently seize Russian assets in Italy or elsewhere in Europe, adding another layer of complexity to the issue.



Russian seized assets a headache for Italian authorities

Imperia, a port in northern Italy. Hundreds of boats are moored here, but only one has been officially restricted from leaving the port, the luxury yacht Lady M. Its presumed owner, Alexei Morduchov, is one of the richest men of the Russian Federation. Since March 22, the yacht is part of the assets that have been frozen by the Italian state in accordance with the EU sanctions on Russia after the invasion of Ukraine. The Lady M has been coming to our marina for years. It's one of the biggest yachts here. It's 63 metres long and worth 65 million euros. But as a frozen asset, its management falls upon the Italian state. And consequently, the Ministry of Finance has to pay all the maintenance costs, including the port fees. The mooring fee for this ship is about 12,000 euros per month in winter and 13,000 in summer. Then there's the electricity that's supplied by the port. On average, we're talking about 10,000 euros per month for electricity and water. Added to it are the costs of insurance, crew, fuel and maintenance. The motors have to be checked every year. For a yacht of this type, just the standard maintenance can be more than 50,000 euros a year. Over the last two years, the Italian state has spent nearly 32 million euros managing frozen Russian assets. Italy would like to officially confiscate them in order to resell them. But they remain the property of their original owners. The lawyer, Andrea Sacucci, represents a Russian oligarch with frozen assets. We're talking about a temporary freeze. These assets have not been confiscated. Seizing them permanently would be problematic, because that would go against an individual's fundamental rights, one of which is the right of ownership. The state cannot appropriate private property arbitrarily. There are currently seven yachts belonging to Russian oligarchs immobilized in Italian ports. The Kremlin has threatened legal action against any attempt at seizure of these assets in Italy or elsewhere in Europe.

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