ROME - Three years ago at the start of the Russian-Ukrainian war, the mega yacht of oligarch Andrey Melnichenko, who is of Belarusian origin and close friend of Vladimir Putin, was seized by the Italian government in the gulf of Trieste, where it has remained to this day. The yacht in question is the largest sailing vessel in the world, with a value of around half a billion euros and its three year seizure has already cost the government around 27 million euros according to Fatto Quotidiano.

 The European Court recently rejected, a few weeks ago, the appeal filed by Melnichenko, who lives in Saint-Moritz, to have his wife Aleksandra’s name removed from the blacklist drawn up by the EU. Had the appeal been accepted, the yacht would most likely have been returned to Mr. Melnichenko. But according to the European judges there is still overwhelming evidence that the wealthy businessman, owner of EuroChem Group and Suek - which specialise in fertilisers and coal - has connections with the Russian president’s inner-circle.

 Thus, the restrictive measures will remain in place for both Mr. Melnichenko and anyone else who ‘supports or implements actions or policies that undermine or threaten the territorial integrity, sovereignty and independence of Ukraine’. According to the ruling, Melnichenko is involved in economic sectors that ‘provide a substantial source of revenue to the Russian government, which is itself responsible for the annexation of Crimea and the destabilization of Ukraine.’ The tycoon had previously transferred the shares that he owned in Suek and the Eurochem Group to his wife, but this has not prevented him from continuing to benefit from his former stakes in the companies. The European judges will now be faced with another appeal, fronted by the company that owns the yacht, Valla Yachts, which is represented by the international law firm Saccucci & Partners, Rome.

 An initial appeal was also filed with the T.A.R. of Lazio, which pertained to a previous request for the asset to be unfrozen by the European Court of Justice. The administrative freeze was ordered on the night between March 11 and 12 three years ago, when the sanctions decided by the EU were triggered. The magnate has always maintained that he is not the owner of the sailing vessel, formally registered to Valla Yachts, which is based in Bermuda and refers to a Swiss trust, of which Aleksandra Melnichenko is the beneficiary. Another factor to be considered in the case, however, is the fact that the seizure of the super-yacht is costing the Italian State a considerable sum of money. Unofficial estimates that take into account various items of expenditure - from crew maintenance to fuel and insurance policies - have calculated that the cost for custody of the vessel is between 20,000 and 30,000 euros per day.

 This is approximately 9 million euros per year and 27 million for the past three years. It has been said that when the asset is returned to the owners, the expenses will be reimbursed but as the war rages on, there is currently no end in sight. The yacht is currently being guarded by the State Property Agency of Friuli Venezia Giulia. The director of the operation, Alessio Casci told Italian newspaper Il Piccolo that “the ruling of the European Court has not changed the work of the Agency, which must maintain great attention on the frozen asset, including surveillance from land and sea 24 hours a day”. The actual cost of custody has not been announced officially.

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