A superyacht linked to Russian billionaire businessman Dmitry Pumpyansky has changed hands in the first such public auction since Russia’s invasion of Ukraine.
The Maltese-flagged 1,620-gt motor yacht Axioma (built 2013) was put up for sale after JP Morgan Chase & Co called in a €20.5m ($19.2m) loan tied to the vessel.
Der Spiegel reported early on Wednesday that a top bidder emerged for the ship at a price of $37.5m.
Gibraltar authorities declined to reveal the name of the buyer, the German magazine said.
Industry sources are telling TradeWinds that the Turkish-built superyacht is rumoured to have been scooped up by European interests.
The deal has been brokered by Howe Robinson Partners, which has acted as the exclusive broker for the territory’s government since 1997.
Contacted by TradeWinds, Howe Robinson Partners declined to comment on the information.
The Axioma is 72 metres long. The ABS-classed vessel, which has a range of 5,000 nautical miles (9,260 km), can accommodate 12 guests in six cabins.
Among other luxuries, it has six decks, two large swimming pools and one cinema.
The Turkish-built ship had been arrested upon arrival in Gibraltar in March.
Some particularities
Pumpyansky, who guaranteed the loan, was added to the UK sanctions list at the time, because of his close connections to Russian President Vladimir Putin.
According to industry sources, however, it's the US sanctions imposed against the same businessmen later in the year that played a more important role in the Axioma's auction — particularly a dispensation obtained by JP Morgan from US authorities to transfer the claim from the person to the yacht.
The Axioma was the first superyacht to be publicly auctioned since Russia’s invasion of Ukraine pushed authorities to freeze luxury vessels in ports around the world.
Its sale is therefore likely to set a benchmark for future auctions of assets seized following Moscow’s invasion of Ukraine.
Having said that, the industry sources point out that the Axioma could only be sold because there was a mortgage attached to it — which may be a tall order for other Russian yachts.
The auction at the Office of the Admiralty Marshal in Gibraltar had attracted 63 bidders, as TradeWinds reported in August.
Prospective buyers hailed from countries including the US, Canada, Britain, Italy, and Turkey, Howe Robinson broker Nigel Hollyer had told The New York Times.
The number of 63 formal bidders, however, may overstate the true interest displayed in the vessel. According to market sources, a quarter of the bids for the Axioma was outright “ridiculous” or of questionable origin.
Sources therefore regard the $37.5m achieved as satisfactory.
Some market sources had bandied about much higher evaluation assessments for the yacht earlier in the year.
What them market seems to have missed, however — according to the source — is that the previous figures were probably reflecting the cost of its construction rather than its ongoing market value.
Furthermore, they didn't take account of the cost for a 10-year survey and the general maintenance the ship is to undergo in the next four to five months.
“The price achieved allows for such costs and repairs,” the source said.
