By Robert A. Emmanuel
The first hearing in the legal matter involving Yulia Guryeva-Motlokhov, the daughter of sanctioned Russian fertiliser tycoon Andrey Guryev, was held yesterday as the government continues to face legal challenges on all sides over the now-infamous Alfa Nero superyacht.
The government has been seeking to sell the vessel since June and despite having two bidders over the stated minimum threshold of a forced sale (US$60 million) the boat remains in the government’s hands.
Guryeva-Motlokhov claims to be the sole beneficiary of a Guernsey-based trust that is the sole shareholder of BVI-based firm, Flying Dutchman Limited, which is said to own the Alfa Nero.
Attorney for Guryeva-Motlokhov, Dr David Dorsett, pledged that the litigation to prevent the government from selling the vessel will continue until the government returns the vessel to its rightful owner.
“Until the government caves in and talks to us, so that the boat can get back into its rightful hands; it really doesn’t belong to the government as the government has no right to seize the boat,” he said.
The government has been incurring debts of over US$100,000 a month since it seized full control of the vessel in April, and has said that its sale would cover all of the boat’s debts, both inside and outside the country’s shores.
But Dr Dorsett said that the government cannot expect to “have your cake and eat it too”.
“It is shameful that the government is incurring unnecessarily an expense that they need not undertake,” he told Observer media.
The government amended the Port Authority Act earlier this year to facilitate the vessel’s auction in June. The Alfa Nero was said to be worth US$120 million at the time.
The legal change was met with fierce criticism from the opposition in Parliament who said they had not received the details in a timely manner allowing them to adequately deliberate. Some in opposition ranks said the sale proceeds should be transferred to Ukraine, which has been battling against the invasion of Russian forces into its territory for more than a year and a half.
Earlier this month, Eric Schmidt withdrew his winning US$67 million bid for the superyacht while the second highest bidder, Warren Halle, has brought a lawsuit against the government for US$5.683 million, alleging breach of contract.
Meanwhile, the government holds that the vessel needs to be sold promptly as it poses an environmental risk to the marina and nearby vessels, particularly during hurricane season.
Dr Dorsett said that he has applied for a yacht surveyor to review the condition of the vessel. The government has objected to this application.
The case management hearing was adjourned to give lawyers on both sides time to review the latter application along with an objection to a government affidavit. The next hearing is expected to be held December 18.