A luxury $75 million superyacht once owned by sanctioned Russian billionaire Dmitry Pumpyansky has been auctioned off in Gibraltar. The auction attracted 63 bids and is the first public auction of a seized asset since the start of the war in Ukraine.
The 72.5-metre Axioma, was seized from Dmitry Pumpyansky in March following sanctions by the UK, EU and the US. The yacht features six luxurious guest cabins, a swimming pool, a 3D cinema room, gym, jacuzzi and a fully equipped spa.
The Office of the Admiralty Marshal in Gibraltar said they received 63 bids for Axioma but refused to give details on the value of the bids.
“The successful bidder will be selected by the Admiralty Marshal but details of the bidder and the value of the offer will remain confidential. Details about the sale value of the vessel will be made available once the transaction has been completed which could take place in approximately 10 to 14 days.”
The sale of Axioma has attracted controversy because it is being sold not for the benefit of the Ukrainian people but for US investment bank, JPMorgan. JPMorgan was involved in the seizure of Axioma after Mr Pumpyansky was added to the sanctions list. US banks are not allowed to do business with anyone sanctioned by the United States.
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Although the $75 million superyacht is owned by Mr. Pumpyansky, it is run by a management company called Pyrene Investments. JPMorgan had lent €20.5 million to Pyrene Investments and Pumpyansky’s inclusion on the sanctions list meant the loan agreement was breached.
Since Pumpyansky beached the loan agreement, JPMorgan felt the best way to get their money back was to seize the boat, so this is more of a bank repo than a government action against a sanctioned individual. Before you think it was smart that JPMorgan added a sanctions clause into the loan agreement, it’s standard for all loans. Check the fine print in your car loan or mortgage and you’ll see it.
It is highly unlikely that Axioma will go for her $75 million market value. JPMorgan is just hoping to get their €20.5 million back. Whether or not they did that, we’ll find out in next 10 to 14 days. James Jaffa, a lawyer for British firm Jaffa & Co which specializes in yachts and who had represented the Axioma before it was seized, said the vessel was likely to sell for “way below” €20 million.
Axioma was built in 2013 by Dunya Yachts. Originally known as project Red Square, her luxurious interior is designed by the renowned Alberto Pinto while Sterling Scott is responsible for her exterior styling.
Her top speed is 18 knots and she has a maximum range of 5000 nautical miles when navigating at cruising speed, with power coming from two Caterpillar diesel engines. She can accommodate up to 12 guests in 6 staterooms, and is serviced by crew of 20. Before she was seized, she was available for charter at €450,000 to €549,000 a week.
