Russian oligarch's $300 million superyacht hides in plain sight in UAE's neutral waters, avoiding sanctions

• The 390ft superyacht has been anchored in the United Arab Emirates for weeks.
• The vessel belongs to Russian oligarch Andrey Melnichenko, worth an estimated $23 billion.

A superyacht belonging to a sanctioned Russian oligarch has been spotted in the port of Ras al-Khaimah, in the United Arab Emirates, according to AP journalists who saw the vessel on Tuesday.

Andrey Melnichenko's 390ft Philippe Starck-designed Motor Yacht A, worth $300 million, was last reported in Dubai, according to vessel-tracking website MarineTraffic.

Melnichenko's other yacht, worth $600 million, was seized by Italian authorities in early March as part of western sanctions imposed following Russia's invasion of Ukraine.

Remaining in the UAE port puts the yacht beyond the reach of western sanctions.

UAE has publicly expressed neutrality about the war in Ukraine. Insider previously reported that sanctioned oligarchs can obtain golden visas by investing at least 10 million dirhams ($2.7 million) in a local company or investment fund.

The Australian broadcaster ABC News and the Financial Times first reported the story.

According to MarineTraffic, the superyacht used to sail under the UK flag.

However, in March, the government of the Isle of Man, a British crown dependency in the Irish Sea, said it had deregistered Melnichenko's yachts including Motor Yacht A because of western sanctions. It added: "We will continue to act with appropriate robustness should the situation warrant it."

European officials told the FT that they don't want "our allies to become facilitators for the Putin regime," and raised concerns with Emirati counterparts that sanctioned individuals could treat the UAE as a financial haven.

Melnichenko, worth $23.5 billion according to Forbes, founded one of Russia's most successful lenders, MDM Bank. He also founded the fertilizer producer Eurochem and coal energy company SUEK.

Russian oligarchs have also turned to alternative routes regarding financial transactions, such as hawala, an informal money exchange.

A Russian businessman told the FT: "Big banks are more cautious but smaller banks are offering help to those wishing to relocate. It's just taking a lot of time."