There are many Russian oligarchs who buy expensive mega yachts out of prestige. Many of them have one thing in common: they come from German shipyards. But the war could also change this industry significantly.
25-meter pools, cinemas, saunas and our own submarines on a boat – what sounds like something out of a movie for most people is everyday life for the entrepreneurial family Lürssen from Bremen. Through their group of companies, they operate some of the most successful yacht builders in the world. They build ships from 100 meters in length upwards. The price range? It really starts from around 200 million euros.
Only a few people in the world can afford such a flagship. The Lürssens’ customers are therefore extremely rich – royal families from Saudi Arabia and American entrepreneurs, for example. In recent years, however, the Lürssens have also sold several yachts to Russian oligarchs – but since the war against Ukraine this has become increasingly difficult.
Lürssen built at least seven oligarch yachts
The Lürssen family has had at least seven such ships built in their shipyards since 2008. The order value per yacht is usually several hundred million euros. The Lürssens are not alone in this – rich Russians have always been good customers for the entire German yacht industry. “I would estimate that at least half of the buyers of German mega yachts of this size are Russians,” says Claus-Ehlert Meyer. He is Managing Director of the German Boat and Shipbuilders Association and has been observing unrest in the industry for some time.
“I know of a supplier who built accessories for a ship worth half a million euros. It’s lying around with him now and can’t be installed,” says Meyer. He does not want to comment on the case in more detail, but it is clear that it is about the construction of a yacht for a sanctioned businessman. This construction is currently on hold – as are other projects that have been stopped by EU sanctions against customers.
Shipyards also made money from maintenance – that could be over now
The German authorities recently detained the mega yacht “Dilbar”, which is attributed to the Russian billionaire Alisher Usmanov, who is close to the Kremlin, in Hamburg. Here the ship was to be extensively serviced in the Blohm and Voss shipyard, which also belonged to the Lürssen family. But this order is now canceled because the sanctioned Russian businessman can no longer transfer money to the EU.
The ship is now in a Blohm and Voss dock. The maintenance of the ship costs the shipyard a five-digit amount every day – which the authorities do not pay.
DBSV Managing Director Meyer knows these problems and knows that the sanctions put entrepreneurs under pressure. “The German yacht industry is relatively broad-based, as the shipyards also build or supply warships and other large ships, for example. Nevertheless, many entrepreneurs naturally hope to be able to work with the sanctioned people again in the future,” he says. Even before the war in Ukraine, however, the order situation for mega yachts was not transparent.
Shipyards are very discreet – but abide by sanctions
“We often experience that the shipyards keep a low profile. The customers demand absolute discretion,” says the managing director of the DBSV. For this reason, the shipyards sometimes built the yachts in secrecy and did not list them as yachts with the German authorities, but rather as “special ships”. Nevertheless, Meyer assumes that the shipyards will comply with the EU sanctions.
This is also confirmed by a spokesman for the Lürssen shipyard association: “In the case of sanctioned yachts, we work closely with the responsible authorities and follow all sanctions regulations,” he said when asked by stern. In addition, unfortunately, no information can be given about the business with mega yachts.
Uncertainty about how oligarch yachts will continue
Meyer can only speculate as to what will happen next with the “Dilbar”. The ship is currently blocking a dock at Blohm and Voss. A spokesman for the city replied to a question from stern: “Blohm and Voss are currently paying for the maintenance of the ‘Dilbar’, it remains in the dock and is unable to manoeuvre,” says Julia Offen. The city is satisfied with this, as the sanction restrictions are observed.
Should Blohm and Voss no longer want the yacht in their dock, a new option would have to be found. There is currently no legal basis for confiscation.