UK High Court defends decision to seize 59m Russian-owned superyacht Phi

A Russian businessman has lost a legal appeal against the United Kingdom High Court to release the 58.5-metre Royal Huisman superyacht Phi.Photo: Charl van RooyThe Netherlands-built motor yacht was the first vessel detained in British waters last year, following Russia’s invasion of Ukraine. The UK Transport Secretary reported that the yacht was first identified as potentially being Russian-owned on 13 March 2022.

Russian property developer Sergei Naumenko who made the appeal, was described by the Secretary of State for Transport at the time, Grant Shapps, as a friend of Russian autocrat Vladimir Putin, which Naumenko denies. Photo: Tom van OossanenIt is believed that the ownership company of Phi is registered in the Caribbean islands of St Kitts and Nevis and she flies under a Maltese flag – making the identification of her ownership more complex. 

Sergei Naumenko claims that Phi was targeted as he is a wealthy Russian and he has no involvement in Russian politics or any connection with Putin. The Department for Transport justified the yacht's detention on the grounds that it was intended to put pressure on rich Russians following the invasion of Ukraine, which Naumenko's lawyers argued was unfair.

Read: Update on Russian yachts seizedPhoto: Charl van RooyThe case was dismissed by London's High Court on Friday, with Judge Ross Cranston rejecting Naumenko's case that Phi was detained for an improper purpose. However, he accepted that Grant Shapps was wrong to describe Naumenko as a friend of Putin, but said it was "excusable political hyperbole.”

“Phi was lawfully detained because she is a high value ship, and her owner was 'connected with' Russia,” said Judge Ross Cranston during a written ruling. Photo: Tom van OossanenSergei Naumenko’s lawyer Paul Dickie said in a statement that the owner of Phi was disappointed by the results and is considering filing an appeal against the decision. 

"We'll continue to act where necessary to crack down on those benefiting from Putin's regime and their illegal war in Ukraine," concluded a spokesperson for the Department for Transport.Photo: Ruben Griffioen