Ukraine's Asset Agency to Auction Medvedchuk's Yacht in Historic First

Royal Romance Yacht Sale Marks a Milestone for Ukraine

According to Главком: Ukraine's Asset Recovery and Management Agency (ARMA) is finalizing preparations to sell the seized yacht Royal Romance, previously owned by former MP Viktor Medvedchuk. This marks the first time Ukraine will sell an asset seized abroad, with the proceeds destined for the state budget. The vessel is currently docked in Croatia and has been registered under the Ukrainian flag, formally placing it under Ukrainian jurisdiction. This sale represents a significant test of Ukraine's post-invasion efforts to reclaim illicit assets held overseas.

All legal hurdles in Croatia that could have blocked the sale have been overcome. The Office of the Prosecutor General has completed its pre-trial investigation and submitted an indictment to court. Based on an investigative judge's ruling, the Royal Romance was transferred to ARMA's management for eventual sale. The auction process is scheduled to begin in March 2024, with the yacht's value estimated at approximately €200 million. The 14-guest, 22-crew vessel is currently under guard in the port of Trogir, Croatia.

The Yacht's History and International Cooperation

Viktor Medvedchuk purchased the yacht in 2015, but it only appeared in his asset declaration in 2019. At that time, the declaration listed the company Fregata Marine Ltd, whose ultimate beneficiary is Medvedchuk's wife, Oksana Marchenko. ARMA has also launched an operation targeting the yacht Amore Mio, which is linked to Medvedchuk's circle. This multinational effort involved coordination with:

• Interpol
• Europol
• The International Maritime Organization
• Authorities from other nations

ARMA leadership states that 'the Royal Romance case is now at the stage of practically implementing a clear roadmap-from recognition of the Ukrainian court's decision to the asset's sale and the transfer of funds into state accounts for subsequent distribution between jurisdictions.'

The yacht, which remains under the jurisdiction of Croatia, was handed over to ARMA for the purpose of its sale. Agency officials have noted that the sale process may face attempts to delay procedures and exploit all possible legal instruments to block progress. A crucial step occurred in 2024 when the yacht's registration was changed to Ukrainian, solidifying its legal status under the Ukrainian flag.

This case holds importance not only for Ukraine but also for international asset recovery practices targeting illicitly obtained wealth. The sale of the Royal Romance could set a precedent for effective international cooperation in securing justice and replenishing state budgets. Its successful conclusion would bolster confidence in Ukrainian institutions and demonstrate their capacity to combat corruption on a global scale.

As Ukraine moves forward with the auction of the Royal Romance yacht, the Asset Recovery and Management Agency (ARMA) faces scrutiny over its handling of seized properties. Recent reports have highlighted concerns regarding the management of over $200 billion in confiscated assets, raising questions about the agency's effectiveness. For a deeper insight into the challenges ARMA is currently navigating, click here.