Gibraltar retains Russian billionaire's yacht 'Axioma'.

The superyacht Axioma, owned by Russian billionaire Dmitry Pumpyansky, according to Forbes magazine, has today obtained authorisation to enter the port of Gibraltar and has been "subject to detention" by the Admiralty bailiff.

The Gibraltar Government said in a press release that 'given the beneficial ownership of the vessel' Axiom, without specifying the name of its owner, 'permission would not normally have been granted for it to enter Gibraltar'.

Gibraltar, like the UK, recently banned the entry of any vessel linked to Russia or persons sanctioned in the wake of the Russian invasion of Ukraine.

In this case the megayacht Axioma has been exceptionally allowed in because the vessel "is the subject of an application for arrest in the Gibraltar High Court by a major international bank".

"It has been exceptionally permitted in the interests of creditors with legitimate claims against the vessel and who are seeking the assistance of the Admiralty jurisdiction of the High Court to enforce those claims," the Gibraltar statement said, noting that the yacht "is now subject to arrest until further notice by the Admiralty bailiff".

The Captain of the Port of Gibraltar granted this permission today, after consultation with Chief Minister Fabian Picardo.

Forbes magazine recently published a list of yachts owned by Russian billionaires, in which it mentioned that the 71-metre Maltese-flagged 'Axioma' is owned by Dmitry Pumpyansky.

According to the Gibraltar Chronicle, he is one of the Russian oligarchs whose assets have been frozen and travel banned under sanctions imposed by the UK in response to the invasion of Ukraine, which are automatically applied in the British colony.


24th March 2022

By Brian Reyes and Francesco Guarascio, Reuters.

Authorities in Gibraltar have frozen the assets of six individuals and entities whose names appear on UK and EU sanctions lists following Russia’s invasion of Ukraine.

Details of the move were revealed by Chief Minister Fabian Picardo during a Direct Democracy programme on Radio Gibraltar.

He said the individuals include businessmen Mikhail Fridman, Oleg Deripaska, Alexey Kuzmichev, Petr Aven and Guerman Khan. Assets linked to Russian energy company Rosneft have also been frozen, Mr Picardo said.

Mr Picardo gave no further details of the nature or value of the assets that had been frozen.

He also declined, on advice from the UK sanctions authority, to identify the names of any companies that provided services to the sanctioned entities or acted as intermediaries.

Mr Picardo said those service providers and intermediaries had been acting legitimately and had represented individuals that were “celebrated and feted” by the UK and other western countries until only recently.

The new sanctions regime, which is continuously updated, meant that situation had now changed and the necessary steps were being taken by both the government and financial professionals to identify and freeze any Russia-linked assets in Gibraltar.

“These are six individuals who are on the UK or EU sanctions list who we have been notified by service providers, or we have identified ourselves, who have assets in Gibraltar,” Mr Picardo said.

“This [sanctions] regime which has been set up by the United Kingdom and the European Union is a self-policing one which requires individuals who are in control of those assets not to deal in them.”

“If they do, they are then breaking the law.”

“And if we determine that they are going to deal in those assets, we will seek to stop them from doing so and we will notify them that they will be acting in breach of the sanctions regime if they were to deal in those assets.”

“But all that the international regime is doing at the moment is freezing, it is not forfeiting.”

“So you hold the ring on that asset, but you don’t sell it, turn it into money and either forfeit the money to the Crown or forfeit the money for the benefit of any third party.”

“The international community needs to consider what it is going to with the frozen assets of these individuals, and that’s a discussion that will require very careful moral consideration at every level.”

News of the sanctions action comes days after a superyacht linked to Russian billionaire Dmitry Pumpyansky, the owner of Russia's largest steel pipe maker, was arrested over an admiralty claim filed in the Supreme Court by an international bank that has a mortgage on the superyacht.

The Gibraltar Government confirmed that the arresting bank is JP Morgan. Contacted by the Chronicle, the bank declined to comment.

Gibraltar has banned the entry into British waters of any vessel linked to Russia or Russian interests, but an exemption was made in this case because the vessel had been arrested by the bank.

The Gibraltar Government said the decision would protect the interests of creditors who had sought the assistance of the court to enforce their claim.

The Government said that, should the Axioma be sold by the court in order to meet the claims of legitimate creditors, any remaining proceeds would be seized under sanctions legislation.

Likewise the vessel itself would be seized under the sanctions regime should it be released by the court.


The context of the latest developments in Gibraltar is the wider move by western governments to freeze the assets of individuals and businesses linked to Russia in response to Vladimir Putin’s decision to invade Ukraine.

But this is a slow and complex task.

Oligarchs' wealth remains largely untouched in the European Union, weeks after Brussels approved measures to freeze the assets of dozens of billionaires and top officials linked to Russia.

Every week since war broke out on February 24, the EU has introduced new sanctions on Russia, adding nearly 700 top politicians, businessmen and military staff to its blacklist - including 42 super rich "oligarchs" such as Chelsea soccer club owner Roman Abramovich and banking tycoon Mikhail Fridman.

Listed individuals are meant to have their bank accounts and assets frozen, but so far only a small fraction of their funds have been affected amid legal constraints and enforcement challenges, according to EU officials and government data from a dozen EU countries.

Germany, the EU's largest economy, has declined to give details of any assets frozen so far. It set up a taskforce last week to enforce sanctions, and the economy ministry told Reuters it expected to report progress in one to two weeks.

Austria and Ireland also declined to specify whether they had frozen any assets, as did Cyprus and Malta, which in recent years have both issued "golden passports" to wealthy individuals, including Russians.

Some countries that have reported freezing assets say they have only hit a small part of the wealth subject to sanctions.

The Dutch finance ministry, for example, said it had frozen about 390 million euros in transactions and financial deposits. That is only about 1% of the wealth of sanctioned individuals in bank accounts, trusts and other financial vehicles in the Netherlands and in offshore centres linked to the country, according to government estimates.

Italy, one of EU's most active countries in seizing physical assets, having taken yachts and villas worth about 800 million euros so far, has yet to hit oligarchs' liquid wealth because much of it is believed to be stored in the bank accounts of third parties or in trusts with no clear beneficial owner, said the head of the Italian tax police Giuseppe Zafarana.

Spain has also not frozen any bank accounts, authorities said, but it has detained at least three luxury yachts linked to blacklisted individuals.

Neighbouring Portugal has blocked only one account owned by a sanctioned individual, with just 242 euros in it, a banking source familiar with the matter said.

Belgium appears to have been the most successful EU country so far. It has frozen about 2.7 billion euros in bank accounts and 7.3 billion euros in transactions, but has not identified any property belonging directly or indirectly to a blacklisted person, the finance ministry said.

Mr Abramovich and Mr Fridman were not immediately available for comment when contacted by Reuters. Mr Fridman has previously described the sanctions against him over Russia's invasion of Ukraine, which Moscow calls a special military operation, as "spurious and unfounded."

The United States, which has imposed similar sanctions on Russia, is also facing difficulties in freezing assets amid legal hurdles.

Oligarchs are believed to hold most of their assets outside the EU and United States, including in offshore jurisdictions, Britain, Switzerland and the Gulf.

Switzerland said on Thursday it had frozen $6.2 billion of sanctioned Russian assets. Its bank lobby estimates Swiss banks hold up to $213 billion of Russian wealth.


The EU has struggled for years to implement sanctions because enforcement rests on member states, which often lack the legal tools, personnel and, in some cases, political will to target wealthy investors, a senior EU official said.

"Historically, enforcement throughout the EU has not been consistent. What is agreed to be implemented at an EU level is not necessarily implemented as required at the member state level," said David Savage, a sanctions expert at law firm Stewarts.

To address this, the European Commission set up a "freeze and seize" taskforce this month specifically to enforce sanctions against oligarchs.

So far, however, the task force has not identified any asset that needed to be frozen urgently because it could be sold or moved away from the EU, the senior EU official said on condition of anonymity.

A Commission spokesperson said EU members were obliged to report measures taken to implement sanctions, but declined to say whether they all did, and did not give a value for assets frozen so far.

Last year, the Commission proposed setting up a "Sanctions Information Exchange Repository" by the end of 2021 to facilitate the process. That repository "is currently in the development phase," the spokesperson said.

Even when there is political will to act, it is not easy to find oligarchs' wealth.

After four rounds of sanctions, the EU is still working to close loopholes that allow targeted individuals to shield money via third parties, trusts or crypto transactions, diplomats said.


Even when applied in full, EU sanctions can usually go no further than freezing assets.

In most countries, this means the assets cannot be sold, but can still be used. An oligarch could in theory live in a "frozen" villa.

Despite the Commission's "freeze and seize" taskforce, seizing - or the state taking control of an asset and even profiting from its sale - is usually a non-starter.

"In most member states, this is not possible and a criminal conviction is necessary to confiscate assets," the Commission said in a statement to Reuters.

In Poland, one of the staunchest supporters of sanctions, seizing assets would require a change to the constitution, government spokesperson Piotr Muller said.

France has frozen around 850 million euros of blacklisted individuals' assets, including properties and yachts, the finance ministry said. But physical assets can still be used by their owners.

Italy, which has some of strictest legislation among EU countries to recover criminals' assets, is also stopping short of appropriating yachts and villas.

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As per the Gibraltar Supreme Court ruling, Russian oil billionaire’s seized $75 million superyacht may be sold for crumbs. Axioma boasts six decks, an infinity pool, and a cinema.

If owning superyachts and maintaining them is no simple story, then seizing and selling these megayachts is also a saga of struggle. This monumental task entails authorities fighting tooth and nail to break through the puzzling web of shell companies followed by proving the rightful owner and getting embroiled in interminable legal battles. The case of Amadea was a classic example. However, like in any story, there are surprises, and superyacht Axioma is just that. Unlike Amadea, luxury yacht Axioma will not be sailing in the sea of unfinished business. A Supreme Court in Gibraltar has mandated that it be sold, per yacht vlogger eSysman SuperYachts, who also threw light on the ownership trail of motoryacht Axioma owned by Pyrene Investments.

Investment bank JP Morgan Chase won a court order that authorized the seizure of Axioma. Business Insider shared, “JPMorgan is acting pursuant to its mortgage rights,” a spokesperson for the Gibraltar government said. “Her Majesty’s Government of Gibraltar is exercising rights to enforce freezing sanctions also.” It was also mentioned that Axioma was only allowed to enter British territorial waters “in the interests of creditors with proper claims against the vessel and who seek the assistance of the Admiralty jurisdiction of the Supreme court to enforce such claims.” The luxury boat will now be sold, but it is improbable the vessel will go under the hammer for its whopping $75 million market value. It will undoubtedly sell for more than the amount owed to the bank. Who knows, this way, it might end up back in the lap of Pumpyansky himself.