Frozen Yachts Sanctions : After Phi, Luminosity?
- E. VOTAT
- Jul 30, 2025
- 4 min read
Another yacht sacrificed, despite a technically feasible transaction
When frozen yachts under sanctions are left to deteriorate
The Echo of Phi
The UK judgment of July 29, 2025, in the M/Y Phi case sent a clear message: freezing is not managing. Immobilizing a technological jewel without a clear framework, without a dedicated team, and with no prospect of sale or value preservation is no longer sustainable.
Another iconic vessel, M/Y Luminosity, has also been sitting idle in Tivat (Montenegro) since March 2022, stuck in a similar legal and political limbo.
Luminosity, the glass megayacht forgotten by all
Construction began in 2014: a 107.6-meter engineering challenge. With a nearly fully glazed superstructure (836 m² according to the shipyard, the largest surface area on any yacht), she was designed to create a unique space of light, air, and water.
Originally valued at €292 million, it was reportedly bought in 2022 by Russian oligarch Andrey Grigoryevich Guryev for €190 million (LuxuryLaunches).
She is frozen under international sanctions, yet without any formal judicial seizure.
Phi & Luminosity:
Same immobilization without maintenance
Same judicial silence
Same loss in value for a practically new yacht
When Luminosity arrived in Tivat in March 2022, her crew numbered around 30. But non-payment of salaries eventually reduced this to a minimal safety crew of around 5 people. Freezing a yacht should not mean punishing its crew.
And of course, 5 people can’t possibly maintain a 107-meter vessel. Luminosity is slowly dying: ceilings dismantled, hull rusting and overgrown with algae, chrome dulled, teak decks torn open. And let’s not forget the massive lithium batteries left unsupervised, posing a very real safety risk.
Sanctioning without structure = cascading deadlocks
There are currently three legal disputes before the Commercial Court in Montenegro involving Flying Cloud Overseas Ltd (the owning entity), facing claims from creditors, including an Italian marine supplier and Porto Montenegro Marina. These parties have obtained interim measures blocking any sale or transfer of the yacht, as well as her departure from port (Vijesti).
Customs officials have even seized the official yacht documents to enforce these rulings.
This tells us three things:
The Luminosity case proves that a motivated sale can exist, even in parallel with legal blockages.
But until litigation is resolved and sanctions are converted into a structured seizure framework, the yacht remains in limbo and debt accumulates.
And even a willing buyer cannot proceed.
From a political standpoint, this undeniably fuels criticism of sanctions as ineffective and even inhumane. Luminosity illustrates, starkly, the counterproductivity of unmanaged sanctions.
And yet, a transaction is possible
What if, unlike Phi, we anticipated? What if, instead of waiting for chaos, we initiated a supervised transaction, aligned with the spirit of the Asset Recovery Directive 2.0?
Our goals:
Preserve the vessel’s value
Legally structure the sale
Guarantee transparency, neutrality, and efficiency
Act in the public interest and for market stability
Phi was left to deteriorate while waiting for judicial clarity, which triggered a wave of anger from the yachting world. Luminosity could become a constructive counter-example, a bridge between the authorities and the yachting industry.
And this industry is, in fact, where the buyers for these frozen yachts exist.
While sanctions aim to demonstrate strength, it is ironically an administrative and legal laxity that leaves these yachts rotting at dock, hemorrhaging value, and sinking further into spirals of debt.
A structured solution is ready
A judicial sales framework for frozen yachts, compliant with the MOA and new EU directives, is ready. It details every step: from judicial ruling to ownership transfer, including surveys, documentation, liability releases, and escrow of proceeds.
Luminosity could become the first flagship case of a smart, structured, extrajudicial sale, compliant with European law and economic common sense.
The time to act is now
Europe has spoken. So has the UK judiciary. It is now up to us to define a responsible, ethical, and proactive path for frozen yachts.
Luminosity doesn’t need to rot at the dock. She can become a solution, and the symbolic launch of Asset Recovery Directive 2.0.
To institutions, authorities, and professionals in the yachting world: This is not a looming shipwreck, it’s an opportunity. The Directive is waiting for us to bring it to life. And Luminosity to return to the sea.
Contact
Emmanuelle VOTAT - Judicial Yacht Asset Manager (France) - Specialist in Seized Maritime Assets – ev@yachting-legal-auction.com
Frozen Yachts & Sanctions : 𝗠/𝗬 𝗟𝘂𝗺𝗶𝗻𝗼𝘀𝗶𝘁𝘆 - 𝟰 𝗬𝗲𝗮𝗿𝘀 𝗨𝗻𝗱𝗲𝗿 𝗦𝗮𝗻𝗰𝘁𝗶𝗼𝗻𝘀, 𝟰 𝗬𝗲𝗮𝗿𝘀 𝗼𝗳 𝗔𝗯𝗮𝗻𝗱𝗼𝗻𝗺𝗲𝗻𝘁 Read the post on LinkedIn
This article is based on publicly available facts, verifiable data, and an independent legal and strategic analysis. It does not, under any circumstances, constitute a definitive statement regarding the guilt or innocence of the individuals or legal entities mentioned, but rather forms part of a general-interest reflection on the management of frozen or seized assets in a complex geopolitical context. Any correction or right of reply may be submitted through the appropriate official channels and will be given due consideration. The author acts in full independence and in compliance with the right to information and the duty of professional restraint.
