$80 Million Superyacht Stuck In Canary Wharf As Russian Sanctions Continue

Gathering dust in London’s Canary Wharf and banned from venturing beyond British waters, the 58.5-metre Royal Huisman motor yacht Phi continues to make headlines three years into its ongoing legal troubles. First launched in 2021 and currently under a long-running detention order, the yacht is at the centre of a protracted battle concerning the UK’s Russian sanctions regime.

Despite her owner not explicitly appearing on any sanctions lists, UK authorities concluded that the vessel is, one way or another “connected to Russia”, leaving Phi in a state of maritime limbo until a final judgement is eventually delivered by the courts. Below is an overview of the yacht’s features, followed by a closer look at the ongoing sanction and appeal process.

Phi Superyacht Quick Facts

Phi Superyacht Specifications

Delivered by Dutch shipyard Royal Huisman in 2021, Phi stretches an impressive 58.5 metres (approximately 192 feet) in length, with a 9.73-metre beam and an internal volume of 495 gross tonnes. The fifth-largest yacht constructed by Royal Huisman — and proud to have the title — she sits at number 594 in the global rankings for largest yachts.

While Phi is currently not for sale — setting her apart from a massive 2,000 yachts currently listed on the market — her future remains uncertain, as the remainder of this article will explain. When her legal woes eventually conclude, she may be put on sale in pretty short order, her owner keen to forget the trouble she’s caused, or the pair may finally get to sail away into the sunset together. Regardless, Phi also boasts a 22-knot cruising speed and accommodation for up to 12 guests across 6 rooms, as well as 11 crew.

Phi’s Detention in London

Phi’s troubles began in March 2022, very shortly after Russia’s invasion of Ukraine, when then UK Transport Secretary Grant Shapps exercised powers under the so-called Russia Regulations of 2019, being sure not to miss a good photo opportunity, as was his not-so-fondly remembered political style. Deeming Phi a “potentially Russian-owned” asset, the vessel was warranted indefinite detention in British waters. Ever since then, Phi has been moored in Canary Wharf. According to her captain, the yacht has suffered hull degradation, lapsed insurance, and even trespassers during her prolonged and reluctant stay.

Even though the yacht’s owner, Russian businessman Sergei Georgievich Naumenko, doesn’t appear outright on any official sanctions list, the UK government pushed ahead with the restriction under the premise of a distant but tangible connection to the Russian regime, scoring some easy political points in the process. UK officials maintain that Phi remains only under a restriction of use, rather than an absolute denial of ownership. All of this means that maintenance, crew presence, and even a sale to a non-Russian buyer are theoretically permitted but, for now, the yacht must stay put.

High Court and Court of Appeal

In 2023, a High Court judge upheld the UK government’s decision, ruling that — although the seizure did interfere with the owner’s property rights, to put it politely — it did not breach human rights obligations and was valid in the context of a national, government-backed sanctions policy. Early in 2024, the Court of Appeal agreed, concluding that detaining Phi was a proportionate response to wider concerns about Russian-linked property.

The case ultimately advanced to the UK Supreme Court with a final hearing beginning on 16th January. Lawyers acting on behalf of Dalston Projects Ltd (Phi’s legally registered owner) and Mr Naumenko challenged the assumption that he is “connected to Russia” merely based on wealth or residency and that there is insufficient proof Phi’s detention would achieve the intended aim of pressuring the Russian regime.

UK government representatives, on the other hand, reaffirmed their position that the detainment was not a full confiscation, pointing out that the yacht could be sold to a non-Russian buyer at any point or maintained for as long as the detention continued, so long as it was not moved. The Supreme Court has now adjourned, with a final judgement expected in six to eight weeks.