The Axioma will become the first seized superyacht to be auctioned after sanctions were imposed on Russian oligarch's following Russia's invasion of Ukraine.
Proceeds from the sale of the £65m luxury vessel on Tuesday in Gibraltar won't go to Ukraine, however, but instead US investment bank JP Morgan, which says it is owed more than $20m (£17m) by the yacht's billionaire Russian ex-owner, Dmitry Pumpyansky.
Detained in Gibraltar in March, the 72.5-metre Axioma is the epitome of yachting opulence, boasting six guest cabins, a pool, gym, jacuzzi, spa and 3D cinema.
Although many oligarch-owned or affiliated superyachts have been seized since the UK, EU and US imposed a raft of sanctions on wealthy Russians, the Axioma is the first to have been put up for sale.
Superyachts of Russian oligarchs - in pictures
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A judge in Fiji has ruled that US authorities can seize the Russian-owned superyacht Amadea. Fiji Sun / AP -
Fijian authorities on April 19 applied to block a superyacht reportedly owned by Russian oligarch Suleiman Kerimov from leaving its waters, as the US moved to seize it. Fiji Sun / AP -
The superyacht Amadea, reportedly owned by Russian oligarch Suleiman Kerimov. Fiji Sun / AFP -
Solaris, a superyacht linked to sanctioned Russian oligarch Roman Abramovich, is pictured in Yalikavak, southwest Turkey. Reuters -
Germany has officially confiscated the world's largest superyacht, the 'Dilbar', owned by Russian oligarch Alisher Usmanov, as part of sanctions against Moscow following the outbreak of war in Ukraine. AFP -
The Dilbar, covered with plastic sheets, is docked in a shipyard of Blohm & Voss in the harbour of Hamburg, Germany. AFP -
The Flying Fox superyacht is seen docked at Don Diego Port in Santo Domingo, Dominican Republic, which is linked to Russian oligarch Dmitry Kamenshchik. Getty Images -
The Flying Fox superyacht. Getty Images -
The Flying Fox superyacht. Getty Images -
MySky superyacht owned by Russia's Igor Kesaev is seen in the waters of the Indian Ocean near Male, Maldives. Reuters -
Titan superyacht owned by Russia's Alexander Abramov is seen in the waters of the Indian Ocean near Male, Maldives. Reuters -
Spanish Civil Guards stand by the Tango superyacht, belonging to Russian oligarch Viktor Vekselberg, which was seized on behalf of US authorities. Photo: Juan Poyates Oliver / Reuters -
Solaris, a superyacht linked to sanctioned Russian oligarch Roman Abramovich, is pictured in Bodrum, southwest Turkey. Reuters -
The superyacht Nord, reportedly owned by the sanctioned Russian oligarch Alexei Mordashov, is docked in the far eastern port of Vladivostok, Russia. Reuters -
The superyacht Nord, reportedly owned by the sanctioned Russian oligarch Alexei Mordashov. Reuters -
Britain on Tuesday detained a Russian-owned, $50-million superyacht boasting a fresh-water swimming pool, in what it called a "warning" to Moscow of the consequences for invading Ukraine. AFP -
The impounding of Phi, the first superyacht ever to be held in British waters, comes after the UK sanctioned hundreds of Russian individuals and entities in recent weeks over the Kremlin's war. AFP -
The PHI superyacht, detained by a unit of Britain's National Crime Agency (NCA). AFP -
Solaris, a superyacht linked to sanctioned Russian oligarch Roman Abramovich, docks at a marina in Bodrum, in southwest Turkey. Ihlas News Agency / Reuters -
Eclipse, a superyacht linked to sanctioned Russian oligarch Roman Abramovich. Reuters -
The superyacht 'Scheherazade', which has been linked to Russian President Vladimir Putin, is moored in the port at Marina di Carrara on March 23, 2022 in Carrara, Italy. Getty Images -
The yacht 'Scheherazade', which is about 140 metres long and worth over 700 million dollars, is moored at the 'The Italian Sea Group' shipyard. Getty Images -
Ukrainian President Volodymyr Zelensky requested the seizure of the superyacht Scheherazade in a speech to the Italian Parliament. Getty Images -
The superyacht Amadea. Fiji Sun / AFP
The auction materialised after JP Morgan launched a legal claim for the money it says it is owed by Pyrene Investments, Pumpyansky’s holding company.
The US bank said the terms of the loan had been broken because it was unable to accept repayments from Pyrene following the sanctions imposed on Pumpyansky. It thus asked Gibraltar's courts to seize and sell the yacht.
“The Axioma was arrested following the filing of an admiralty claim in the supreme court. Given that the sale is by auction, pursuant to an order of the court, the Admiralty marshal cannot say how much it is expected to sell for or how many people have expressed interest,” a spokesperson for Gibraltar Courts Service said.
However, the man in charge of the auction told the UK's Guardian newspaper there had been an “unexpected late surge by prospective buyers” with more than 30 from around the world travelling to Gibraltar.
“They are people who own or have owned boats of similar size, and have been attracted to this boat because of the judicial sale process – they are convinced they’re going to get a bargain,” said Nigel Hollyer, the broker to the Admiralty marshal of the supreme court of Gibraltar.
Originally called Red Square, the Axioma was built by Dunya Yachts in Turkey in 2013, and was available for other millionaires to charter for $558,500 a week.
With an estimated fortune of £1.84bn, the loss of revenue is unlikely to trouble Pumpyansky too gravely. He is the owner and chairman of steel pipe manufacturer OAO TMK, which supplies Russia state energy giant Gazprom. The UK has described him as one of Vladimir Putin's closest oligarchs. Unsurprisingly, he could not be contacted for comment on the impending auction.
