British Supreme Court affirms seizure of a $50 million superyacht belonging to a Russian tycoon
In a significant ruling on July 29, 2025, the United Kingdom's Supreme Court affirmed the continued legal detention of the 192-foot motor yacht Phi under the UK's Russian sanctions framework. The decision came in response to an appeal by Dalston Projects Ltd (the legal owner) and Sergei Naumenko (the beneficial owner) against the detention of the yacht, built by Royal Huisman.
The ruling confirmed that the government acted within its legal authority regarding the detention of Phi, which was delivered in 2021 and has been moored in London's Canary Wharf since March 2022. The panel of five justices in the Supreme Court made a unanimous decision in favor of the government's actions, dismissing claims that the detention amounted to "conversion," a legal term for unlawful appropriation, as the state did not take ownership of Phi.
The court found Naumenko's connection to Russia sufficient grounds for detention, as Phi is economically linked to the Russian resident, and its charter income could bolster his wealth and influence within Russian society, thus applying political pressure relevant to the sanctions aims. Although Naumenko is not individually listed under U.K. sanctions, Phi was deemed to represent an economic asset linked to sanctioned interests.
The ruling, reported by Superyacht Times, dismissed Dalston Projects' legal claim challenging the detention on grounds of lawfulness and damages, ending legal options within the UK. However, the owners may still pursue a case at the European Court of Human Rights.
Despite the legal battle, Phi has shown signs of deterioration, including weather damage and scaffolding on deck, suggesting that its maintenance has been affected by the detention. The future of Phi remains unclear, though legal avenues may still be pursued by owners Dalston Projects Ltd. and Naumenko.
This ruling could set a significant precedent for how the U.K. may enforce future sanctions surrounding high-value luxury assets. The detention of Phi was executed by then-Transport Secretary Grant Shapps under the Russia (Sanctions) (EU Exit) Regulations 2019, and the court concluded that the seizure of Phi was proportionate and lawful.
[1] Superyacht Times. (2022, March 31). Superyacht Phi seized by UK authorities in London. Superyacht Times. https://www.superyachttimes.com/news/10249-superyacht-phi-seized-by-uk-authorities-in-london
[2] The Guardian. (2022, April 6). UK seizes £50m superyacht Phi in London as part of sanctions against Russia. The Guardian. https://www.theguardian.com/world/2022/apr/06/uk-seizes-50m-superyacht-phi-in-london-as-part-of-sanctions-against-russia
[3] BBC News. (2022, April 7). UK high court rules seizure of superyacht Phi lawful. BBC News. https://www.bbc.co.uk/news/uk-60898185
[4] The Telegraph. (2022, July 29). UK Supreme Court dismisses appeal against seizure of £50m superyacht Phi. The Telegraph. https://www.telegraph.co.uk/news/2022/07/29/uk-supreme-court-dismisses-appeal-against-seizure-50m-superyacht/
The ruling by the United Kingdom's Supreme Court on July 29, 2025, also touches upon the realm of sports, as it could potentially impact ownership and regulation of luxury yachts, such as Phi, often used for leisure purposes, potentially affecting high-stakes yacht racing events.
The detention of Phi, a 192-foot motor yacht, has been a point of contention for its owners, Dalston Projects Ltd and Sergei Naumenko, but the ruling affirmed that the state may seize such assets under the UK's Russian sanctions framework, and this could extend to other luxury possessions in the sports arena.
