The $50 million vessel, Phi, has been held in London since 2022 under Russian sanctions.
The United Kingdom’s Supreme Court has ruled in favor of the government’s continued detention of Phi, the 192-foot (58.5-meter) motor yacht built by Royal Huisman, dismissing an appeal from the vessel’s registered owner, Dalston Projects Ltd.
The court concluded that the seizure, executed under the U.K.’s Russian sanctions framework, was proportionate and lawful, Superyacht Times reported.
Delivered in 2021, Phi has been moored in London’s Canary Wharf since March 2022, following its detention by then-Transport Secretary Grant Shapps. The yacht was seized under the Russia (Sanctions) (EU Exit) Regulations 2019, on grounds that it was reportedly “owned, controlled, or operated by" Russian businessman Sergei Naumenko, its beneficial owner.
Although Naumenko is not individually listed under U.K. sanctions, the Supreme Court found that Phi could still represent an economic asset linked to sanctioned interests. The judges accepted that the vessel’s charter potential could ultimately generate income for Russian beneficiaries, aligning with the broader objectives of the sanctions.
In a unanimous decision, the panel of five justices—Lord Robert Reed, Lord Philip Sales, Lord George Leggatt, Lady Vivien Rose, and Lord David Richards—determined that the government had acted within its legal authority. The ruling also dismissed claims that the detention amounted to “conversion," a legal term for unlawful appropriation, noting that the state had not taken ownership of Phi.
The judgment also confirmed that the transport secretary was not required to provide detailed reasoning beyond citing the legal framework for the detention. This could set a significant precedent for how the U.K. may enforce future sanctions surrounding high-value luxury assets.
Once a display of fine Dutch craftsmanship and cutting-edge marine engineering, Phi is now uninsured, no longer in class, and showing signs of deterioration, including weather damage and scaffolding on deck. The vessel boasts an array of amenities, such as an infinite wine cellar and a penthouse apartment on the upper deck.
As for what the future holds for Phi, that remains unclear, though legal avenues may still be pursued by owners Dalston Projects Ltd. and Naumenko.
From the article by India Brown
