A Fire-Sale of Seized Assets
U.S. authorities have sold a seized Russian oil tanker for $9.1 million, triggering a sharp legal challenge from the vessel’s owner. Lawyers for Burevestmarin LLC argue the sale price is significantly below market value, designed specifically to prevent them from recovering the tanker, the Bella 1.
The company claims the $9.1 million price tag is a fraction of the $21 million the vessel would command as scrap alone. Attorneys further contend the ship’s value as an operating commercial vessel is substantially higher, calling the government-led transaction “economically irrational.” Court filings allege the deal was conducted behind closed doors while active challenges to the court’s jurisdiction were still pending.
The North Atlantic Pursuit
The Bella 1—formerly registered in Panama and later flying the Russian flag as the Marinera—was detained by the U.S. Coast Guard on January 7. The ship was intercepted in waters south of Iceland following a pursuit across the North Atlantic.
The @TheJusticeDept & @DHSgov, in coordination with the @DeptofWar today announced the seizure of the M/V Bella 1 for violations of U. S. sanctions. The vessel was seized in the North Atlantic pursuant to a warrant issued by a U. S. federal court after being tracked by USCGC Munro. pic.twitter.com/bm5KcCK30X
Washington maintains the vessel was carrying sanctioned Iranian oil and attempting to evade a U.S. naval blockade intended to halt exports from Venezuela. Burevestmarin’s legal team disputes the government’s claim that the tanker was transporting illegal oil.
Russia Linked Tankers Sent to Indian Port for Dismantling
The Bella 1 is one of two Russia-linked tankers sold to the Dubai-based recycling company Global Marketing Systems. Both vessels were sent to the Indian port of Alang for dismantling. The second ship, the Lileo—formerly known as the Veronica and later the Galileo—was seized in the Caribbean in January after shifting its registration to the Russian flag.
GMS Chief Executive Officer Anil Sharma acknowledged the ships were sold under court order but noted the transactions faced complications due to uncertainty regarding previous ownership. Reports have identified the owner as Crimean businessman Ilya Bugay.
Moscow Condemns Seizures as Illegal Use of Force
The seizures have drawn ire from Moscow, with Russian authorities labeling the actions an illegal use of force that violates freedom of navigation. The Russian Foreign Ministry has formally appealed to U.S. President Donald Trump for the release of the crews involved. To date, U.S. authorities have seized ten oil tankers as part of the blockade of Venezuela.
The Court’s Deadline
Representatives for the U.S. Department of Justice and the scrap dealer were not immediately reached for comment. The court has ordered the Justice Department to submit a formal response to the allegations raised by Burevestmarin LLC by 9 a.m. Friday.
