The United Kingdom’s Supreme Court has ruled in favor of the government’s continued detention of Phi, a 192-foot (58.5-meter) motor yacht valued at $50 million. Built by the renowned Dutch shipyard Royal Huisman and delivered in 2021, Phi has been held in London’s Canary Wharf since March 2022 under Russian sanctions.
The yacht’s registered owner, Dalston Projects Ltd., had appealed the seizure, but the court dismissed their claim. The detention was executed under the Russia (Sanctions) (EU Exit) Regulations 2019, on the basis that Phi is reportedly “owned, controlled, or operated by” Sergei Naumenko, a Russian businessman. Although Naumenko is not personally listed under UK sanctions, the court determined that Phi could still represent an economic asset connected to sanctioned interests, with its potential charter income ultimately benefiting Russian beneficiaries.
The panel of five justices unanimously ruled that the government’s actions were lawful and proportionate, affirming that the Transport Secretary acted within his legal authority. The judges also rejected claims that the detention constituted “conversion” — unlawful appropriation of property — noting the state has not taken ownership of the vessel. Furthermore, the court confirmed that detailed reasoning beyond citing the legal framework for the detention was not required.
Once celebrated for its exquisite Dutch craftsmanship and advanced marine engineering, Phi is now uninsured, no longer in class, and showing visible signs of deterioration, including weather damage and scaffolding on deck. The yacht boasts luxurious features such as an infinite wine cellar and a penthouse apartment on the upper deck, highlighting the level of sophistication now at stake.
The future of Phi remains uncertain. Legal options may still be pursued by the owners, but this ruling sets a significant precedent for how the UK government will enforce sanctions on high-value luxury assets connected to Russian interests.
