Superyacht linked to sanctioned Russian oligarch auctioned in Gibraltar

A $75-million superyacht linked to a sanctioned Russian steel billionaire was auctioned on August 23 in Gibraltar, court sources said, in what is understood to be the first sale of its kind since Russia invaded Ukraine in February.

The Axioma was impounded by the Gibraltar authorities in March after US bank JP Morgan said its alleged owner Dmitry Pumpyansky had reneged on the terms of a $20 million loan, according to Reuters.

The 72.5-metre vessel was auctioned by the Gibraltar Admiralty Court through a system of closed bids to be sent electronically by midday on Tuesday, a court spokesman said. The court added that 63 bids had been submitted for consideration, with the selection process expected to take 10 to 14 days.

There was an “unexpected late surge by prospective buyers” around the world for the vessel, Nigel Hollyer, broker to the Admiralty Marshal of the Supreme Court of Gibraltar who led the auction, told the Guardian newspaper last week.

The boat sleeps 12 people in six cabins and boasts a swimming pool, a spa, 3D cinema and water sports equipment.

According to court papers reviewed by Reuters, JP Morgan lent 20.5 million euros to British Virgin Islands-listed Pyrene Investments Ltd which was owned by Furdberg Holding Ltd. Furdberg's owner was Pumpyansky, who acted as guarantor for the loan.

The papers said Pyrene Investments defaulted on the loan terms after Pumpyansky on March 4 transferred his shares in Furdberg to a third party and was then sanctioned, blocking the repayment of the loan.

The 58-year-old, who has an estimated fortune of $2 billion according to Forbes magazine, was sanctioned by Britain and the European Union shortly after the invasion of Ukraine.

Pumpyansky was until March the owner and chairman of steel pipe manufacturer OAO TMK, a supplier to Russian energy company Gazprom. The company said he had since withdrawn from the firm.

The Axioma is the first seized luxury yacht known to be auctioned since the West imposed sanctions on powerful Russians following the February invasion of Ukraine.