In the dusty sheikh and north of the UAE, where workers roam rustic tea shops, one of the largest yachts in the world is in a quiet harbor, so far avoiding the fate of other luxury ships linked to oligarchs. sanctioned Russians.
Key points:
- A 118-meter superpower belonging to Russian billionaire Andrey Melnichenko is located on a waterway in the United Arab Emirates to prevent confiscation
- Luxury boats belonging to Russian oligarchs have been confiscated around the world due to sanctions
- The United Arab Emirates has offered refuge to mega-rich Russians since the invasion of Ukraine
The display of luxurious wealth is stunning in one of the poorest emirates in the United Arab Emirates, a 90-minute drive from Dubai’s illuminated skyscrapers.
But the presence of the 118-meter A-motor yacht on a Ras al-Khaimah waterway also shows the neutrality of the United Arab Emirates during Russia’s war against Ukraine, as the Gulf country remains a magnet for Russian money and its oil-rich capital sees Moscow as a crucial partner in OPEC.
Since Russian tanks entered Ukraine, the seven sheikhs of the Emirates have offered a refuge for the Russians, both those desperate for the future of their country and the mega-rich worried about Western sanctions.
Although much of the world has accumulated sanctions on Russian institutions and allies of President Vladimir Putin, the Emirates has not. He also avoids open criticism of the war, which government readings still refer to as the “Ukraine crisis.”
The motor yacht A belongs to Andrey Melnichenko, an oligarch worth about $ 23.5 billion ($ 32.7 billion), according to Forbes. He once ran the fertilizer producer Eurochem and SUEK, one of the world’s largest coal companies.
Russian oligarch Andrey Melnichenko is believed to be a member of Putin’s inner circle. (Reuters: Sergei Karpukhin)
Oligarch included in the list of mass sanctions
The European Union included in March Melnichenko in a massive list of sanctions on business leaders and others described as close to Putin. EU sanctions indicated that he attended a February 24 meeting that Putin held on the day of the invasion.
“Being invited to attend this meeting shows that he is a member of Vladimir Putin’s closest circle and that he is supporting or implementing actions or policies that undermine or threaten the territorial integrity, sovereignty and independence of Ukraine. , as well as stability and security in Ukraine, “the EU said at the time.
Melnichenko resigned from the two major corporate positions, according to company statements. However, he criticized Western sanctions and denied being close to Putin.
Melnichenko could not be reached for comment.
Authorities in Italy have already confiscated one of their ships: the $ 600 million sailing yacht A. France, Spain and Britain have also tried to attack Russian-oligarch-linked superiors as part of a broader global effort to put pressure on Mr Putin and those. near him.
A satellite image shows the superhero moored at Ras al-Khaimah, although his last position recorded days earlier was in the Maldives. (AP: Planet Labs PBC)
The superiot is hidden from view
But the $ 300 million yacht A engine so far looks intact. He carried the Emirati flag on Tuesday when reporters from the Associated Press observed the ship. Two crew members move around the deck.
The last recorded position of the boat on March 10 put it out of the Maldives in the Indian Ocean, just over 3,000 kilometers from Ras al-Khaimah.
Planet Labs PBC satellite images analyzed by the AP show the ship in the Ras al-Khaimah stream from March 17, a week later.
The Financial Times first reported on the ship’s presence in the United Arab Emirates.
Ras al-Khaimah authorities did not respond to a request for comment on the presence of the yacht. The UAE Ministry of Foreign Affairs did not respond to questions about the ship, but said in a statement to the PA that it takes “its role in protecting the integrity of the global financial system very seriously.” .
Russia’s super-rich are turning to “neutral” countries to prevent their property from being confiscated. (Reuters: Toby Melville)
The “neutral” response of the UAE to the war due to the influx of Russian cash
But so far, the United Arab Emirates has not taken any such public action against Russia. The country abstained in a UN Security Council vote in February condemning Russia’s invasion and outraging Washington.
The neutral answer may come from “the financial gain we are seeing in Dubai in terms of new tourist arrivals and Russian efforts to move assets and buy property,” said Karen Young, a senior member of the Middle East Institute. of Washington.
The flow of Russian money, both legitimate and shady, is now an open secret in Dubai, where luxury hotels and beaches are increasingly crowded with Russian speakers. State radio presenters happily describe a massive influx.
The United Arab Emirates became one of the few airliners left outside Moscow. The UAE government offered three-month multiple entry visas on arrival to all Russians, allowing large companies to easily relocate their employees from Moscow to Dubai.
Al Maktoum International’s private jet terminal at Dubai World Central has seen a 400% increase in traffic, the airport’s director general recently told the AP.
Real estate agents have reported an increase in interest from Russians looking to buy property in Dubai, especially in the skyscrapers of Dubai Marina and the villas in Palm Jumeirah.
For those who want to move to the UAE, buying a high-end property also helps to get a visa.
“Business is booming right now,” said Thiago Caldas, general manager of Dubai-based real estate firm Modern Living, which now accepts cryptocurrencies to facilitate sales with new Russian customers.
“They have a normal life and they don’t face restrictions.”
Caldas said inquiries from Russian customers in Dubai have multiplied by more than 10 since the war, forcing his company to hire three Russian-speaking agents to deal with the flood.
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Super rich goes back to crypto
With sanctions on Russian banks and companies making it difficult for many citizens to access foreign capital, Russians are increasingly trying to prevent bank transfers via digital currencies in Dubai, two cryptocurrency traders said in the city, where they can settle large sums of cash.
“It’s a safe haven. The inflow of Russian accounts skyrocketed 300 percent days after the start of the war in Ukraine,” said a Russian cryptocurrency trader in Dubai, who spoke like the other under conditions of anonymity for fear of reprisals.
Meanwhile, Abu Dhabi’s state-owned investment company Mubadala remains among Russia’s most active sovereign wealth funds, along with those in China and Qatar, according to calculations by Javier Capapé of IE University in Spain.
But the pressure is growing. At the last minute on Tuesday, the U.S. Embassy in Abu Dhabi posted a strong video message in solidarity with Ukraine with local ambassadors of the world’s major democracies as Russia’s foreign minister visits the region.
“We are united against unjustified, unprovoked and illegal aggression by Russia,” said Ernst Peter Fischer, Germany’s ambassador to the United Arab Emirates.
AP
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