Ukraine's Strategy: Monetizing Captured Vessels to Support the Fight Against Russia

According to a recent report from Liga, Ukraine is gearing up to auction off a Turkish cargo ship that was seized in 2024 due to allegations of grain theft from Crimea. This move is part of UkraineS broader strategy to liquidate confiscated vessels and generate funds for its ongoing conflict with Russia.

The National Agency for Tracing and Asset Management (ARMA) is on the lookout for an entity to facilitate the sale of the Usko MFU, a vessel weighing 2,850 DWT.Built in 1982 and measuring 94 meters in length, this ship is registered under Cameroon’s flag.

In their proclamation regarding the sale, ARMA highlighted that this vessel holds considerable investment potential. It might very well be appealing not only for future commercial endeavors but also for businesses focused on ship repairs or recycling operations.

Interested parties can submit proposals until July 4,2025. Following this deadline, ARMA will select an auction organizer who will conduct an autonomous valuation and oversee the sale process.

The Usko MFU was taken into custody on July 2, 2024, while navigating through Ukraine’s Danube region. Authorities allege that it had disabled its AIS signal while en route to Moldova.Investigations revealed that in early 2023, it had made trips between sevastopol and Turkey carrying over 3,000 tons of agricultural goods intended for a Turkish firm.

To obscure its activities further, the vessel turned off its AIS transmissions; by late may last year it returned to Sevastopol after unloading cargo from Turkey—again with its signal switched off.

Upon inspection by Ukrainian officials, records and electronic devices were discovered onboard and subsequently confiscated. The crew comprised twelve members including an Azerbaijani captain who faced prosecution alongside another officer; reports indicate he received a fine while the Turkish owner refuted any wrongdoing claiming prior ownership during those transactions.

Currently under court order management by ARMA, proceeds from selling such assets are intended to support Ukrainian governmental efforts amid ongoing hostilities.This week marked another significant advancement as ARMA sought court approval to manage nine additional smaller vessels—including three Russian VolgoBalt tankers—expanding their asset recovery initiatives. Just last week they successfully prevented the removal of Emmakris II—a bulk carrier detained at Chornomorsk since early conflicts began—highlighting plans for utilizing it as grain storage space moving forward.

Additionally, ARMA continues legal battles over luxury assets like Royal Romance—a yacht associated with exiled businessman Viktor Medvedchuk known for his ties with Russian interests—which was seized back in Croatia during 2022. After necessary maintenance work wraps up soon enough they plan on putting it up for sale too!