Today the 81-metre Alfa Nero bobs quietly in the Ligurian Sea near the French-Italian border, with its stern leaving behind a three-year tug-of-war involving oligarchs, oil moguls, tech billionaires—and the government of Antigua and Barbuda that now stretches from St John’s to New York’s federal courts.

Since Antigua and Barbuda declared the super-yacht “abandoned” in April 2023 and auctioned it for roughly US$40 million last July, at least three rival claimants—including the daughter of sanctioned Russian billionaire Andrey Guryev—have sued to claw it back, subpoenaed government ministers, and challenged the very constitutionality of the island’s amended seizure law.

On Wednesday June 6, 2025, Jesse Furman, a judge for the United States District Court, Southern District of New York ended one part of this long battle that could have cost the Antigua & Barbuda government millions of dollars to defend.

The U.S. federal judge quashed subpoenas seeking banking records tied to Prime Minister Gaston Browne, his family, and several Antiguan officials and entities in connection with the controversial seizure and sale of the Alfa Nero superyacht.

The subpoenas were part of a legal discovery request filed by Yulia Guryeva-Motlokhov, daughter of the Russian oligarch, who previously owned the vessel. Guryeva-Motlokhov alleged that the yacht’s 2023 confiscation and $40 million sale by the Antiguan government were unconstitutional and potentially corrupt, naming Browne and others as participants.

However, Judge Furman ruled last week that the request for discovery, filed under 28 U.S.C. § 1782, a U.S. law that allows foreign litigants to obtain documents from American entities for use in international court cases, failed to meet a key legal requirement — that the documents be “for use in a foreign proceeding.”

As such, the subpoenas issued to the Federal Reserve Bank of New York and The Clearing House Payments Company LLC were deemed invalid.

The court had initially granted Guryeva-Motlokhov’s application on an ex parte basis in March 2025.  But after reviewing the documents, Judge Furman ultimately sided with the Antiguan intervenors, stating that Guryeva-Motlokhov had not sufficiently demonstrated how the requested information would be usable in the Antiguan or Russian court proceedings she cited.

He emphasized that while the U.S. law allows foreign litigants to obtain evidence through American courts, there must be a clear and practical way for the information to be presented before a foreign tribunal.

He noted that the discovery “must be more than relevant; it must be usable,” and Guryeva-Motlokhov failed to show how the documents could be introduced in her ongoing court challenge.

Why Antigua Seized the Alfa Nero

To understand the most recent court decision by the US Federal Court, we have to start from the beginning. The Alfa Nero was moored in Falmouth Harbour, Antigua, when the U.S. Office of Foreign Assets Control (OFAC) sanctioned Russian fertiliser tycoon and close associate of Vladimir Putin, Andrey Guryev in 2022, blocking the vessel and requesting it remain in Antiguan waters.

The Antigua and Barbuda government subsequently passed a law granting authority to confiscate and dispose of abandoned vessels, claiming that it was posing an environmental and security risk. Additionally, the yacht’s maintenance was costing taxpayers USD$28,000 a week.

After a failed attempt by Guryeva-Motlokhov to block the move, the government sold the yacht to YM Thunder 1 Shipping Ltd., a company linked to Turkish businessman Ali Riza Yildirim.

Guryeva-Motlokhov later sued in Antigua and in Russia, and claimed she planned to pursue a related case in the United Arab Emirates.

Her investigation in the US Court targeted financial dealings over the past five years involving seven individuals, including Prime Minister Browne, his family, key government officials, and 12 entities. The focus includds transactions linked to WIOC and Fancy Bridge Ltd., a Hong Kong-based investment firm with ties to Venezuela’s state-owned oil company, Petróleos de Venezuela S.A. (PDVSA).

The government along with its statutory agency WIOC, in its initial defence, spent approximately US$200,000 on behalf of WIOC and US$136,000 for the government.

To represent the prime minister and co, the legal fees came from taxpayers because according to prime minister Browne, they acted in their official government capacities when they sold the Alfa Nero.

The Bidders and the Secret Buyer

Initially, the government was expected to sell to American billionaire former Google CEO, Eric Schmidt for US$67.6m, despite eleventh-hour attempts by Guryeva-Motlokhov to stop the sale.

The auction closed on Friday June 16th, with three bids but the former Google executive ultimately secured the vessel for a below-market value price. But that sale didn’t stick due to legal complications.

There were, in fact, two preferred bidders in the initial auction — Eric Schmidt and Warren Halle. So, when US tech billionaire Schmidt withdrew his bid, citing legal delays that prevented him from acquiring the rights to the vessel, Halle naturally expected to be next in line.

However, he later considered suing the Antigua government over its alleged failure to follow its own auction rules. Those rules, according to him, should have made him the preferred bidder after Schmidt failed to pay the government within the agreed seven-day period, among other concerns.

Chief of Staff in the Prime Minister’s Office, Lionel Hurst, had said at the time that while the government was open to negotiating a settlement with Halle—including a possible sale of the superyacht—the American entrepreneur was quoting a price the administration deemed unacceptable. There has been no public update regarding Halle’s threatened lawsuit.

About a year later, the yacht was eventually sold at auction to a mystery buyer for US$40 million. That buyer was later revealed as Turkish businessman Ali Riza Yildirim. The final sale was bound by a non-disclosure that the Port Authority signed with the buyer.

According to port CEO Darwin Telemaque, the government was required to sign an indemnity clause as part of the deal, shielding the buyer from legal liability arising from ongoing third-party ownership disputes.

The amount covered the debt incurred to maintain the vessel over the past 18 months as well as to pay off US$3.4 millions to crew members who are owed.

Amidst the sale, ownership disputes have been ongoing, with Guryeva-Motlokhov, claiming ownership, even while her father Andrey Guryev denied ever owning the yacht, stating he was just a passenger. “The whole legal structure around the vessel has caused a lot of people to be disinterested,” Telemaque said.

A US-based brokerage firm will receive a 4.5% commission ($1.8 million) for facilitating the sale.

How the Antigua & Barbuda Government was able to sell the Alfa Nero

The government was able to sell the luxury yacht Alfa Nero by seizing it under the country’s laws after it was abandoned in Falmouth Harbour for over a year. Not wanting to risk hurricane damage which may have caused further environmental problems, prime minister Gaston Browne insisted it was the best case scenario. Telemaque said that the vessel was “naturally deteriorating” because of a lack of maintenance.

To facilitate the sale, the Parliament passed special legislation – the Port Authority (Amendment) Act 2023 – allowing the government to take ownership and auction the vessel.

Guryeva-Motlokhov argued that her property rights in the vessel and the works of art were annulled by the Port Amendment Act.

She unsuccessfully sought an injunction to stop the sale of the luxury yacht and order the forfeit of monies from any sale into the government’s consolidated fund. Her primary arguments were that the Authority expropriated her property without compensation and that the vessel was not entitled to be registered under the Antigua and Barbuda Merchant Shipping Act.

Government Discloses Alfa Nero Sale Proceeds following questions raised in AP article

The government’s legal problems did not end with the yacht’s sale. The government of Antigua and Barbuda was forced to release a breakdown of how it utilized the US$40 million proceeds from the sale. The detailed financial report, sanctioned by the Financial Secretary, was made public in response to questions raised in an Associated Press (AP) article regarding the transparency of the transaction.

According to the report, the funds were allocated across several expenditures, including:

• USD $2.9 million for crew salaries and security expenses
• Almost USD $400,000 in legal fees
• USD $694,000 to the West Indies Oil Company (WIOC) for fuel costs
• USD $5.5 million towards repaying a loan from the Caribbean Development Bank (CDB)

Prime Minister Browne continues to strongly deny allegations of financial misconduct surrounding the sale, calling them “falsehoods” propagated by members of the opposition United Progressive Party.  Opposition Leader Jamale Pringle dismissed those claims as politically motivated. He called them “diversionary tactics designed to shift public attention away from more serious concerns.”

“This case has been going on in the courts for a couple years now. There were numerous applications for injunction. We were able to defeat all of them,” Anthony Astaphan, the government’s Legal Counsel stated.

However, the underlying case in Antigua regarding the legality of the yacht’s confiscation is still awaiting judgment.  Other local legal challenges also persist, as Flying Dutchman Limited and Guryeva-Motlokhov have contested the constitutionality of the sale.

“So the matter did go to trial on the merits and the judge has reserved judgment but we expect the judgements at any time on the two matters as to whether or not the decision of the government to seize was unconstitutional, unnecessary to protect the environment in Antigua and Barbuda,” Astaphan said.

Flying Dutchman Overseas Limited and Vita Felice Limited, both companies incorporated in the Virgin Islands have also challenged the manner in which the vessel was seized by the government. Vita Felice Ltd claims to be the owner of several works of art on board the vessel, while Flying Dutchman Overseas Ltd claims ownership of the boat. Both entities are said to be managed by Guernsey-based fiduciary services company Opus Private Ltd and its CEO Shane Giles.

How the Antigua government responded

The Government of Antigua and Barbuda is currently weighing its legal options following the United States federal court ruling that quashed all subpoenas related to the Alfa Nero case.

Reacting to the decision, Director General of Communications in the Office of the Prime Minister, Maurice Merchant, said the government is consulting legal counsel on whether to pursue further action against individuals it believes have attempted to defame the country and its officials.

“The government is resolute in its position that those who defame government, country, government officials will receive necessary reactions,” he said.

He pointed to what he described as a “defamation agenda” by individuals both locally and abroad, claiming their efforts had damaged the global image of Antigua and Barbuda.

“They must not go unpunished,” Merchant asserted.  “In this Alfa Nero matter, they were aided by individuals here in Antigua and Barbuda. And some will say even abetted because it can be considered criminal what has been done to the country at this time, to the country’s image, to the image of officials.”

Merchant said the government considers the ruling a strong rebuke of efforts to manipulate foreign courts to discredit Antiguan institutions. He also raised concerns about how the matter has affected the country’s online presence and reputation.

“Once you go on the World Wide Web and there are negative things about Antigua and Barbuda, it not only affects the politicians, it affects us as individuals, as citizens of Antigua and Barbuda. And so, the government will be looking at what actions can be taken.”

The government maintains that the sale of the Alfa Nero yacht was conducted legally and involved a U.S. government entity, asserting that no wrongdoing occurred. “The United States government would not engage in Antigua and Barbuda doing anything illegal,” Merchant said.

While Guryeva-Motlokhov may consider appealing the court’s decision, the government’s legal counsel, speaking on Pointe FM, indicated that her chances of success are “slimmer than they were before the district court proceedings.”

He also noted that the government will be applying to the court to recover its legal expenses incurred while defending against the discovery request, including attorney’s fees.

The U.S. court has ordered that all subpoenaed documents be destroyed within two weeks.