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Superyacht sales took a dive in 2023 over surging costs, Russian oligarch sanctions

S ales of superyachts — luxury boats more than 100 feet long — fell 17% in 2023, according to a new report that attributed the dip to soaring costs, long waiting lists and sanctions of Russian oligarchs.

According to the SuperYacht Times’ latest State of Yachting report, there were only 203 sales of new superyachts last year — down from 245 in 2022 and a record 313 in 2021.

Ralph Dazert, head of intelligence at SuperYacht Times, noted that there are year-long backlogs to score a luxury vessel that originated during the pandemic, when costs were cheaper, CNBC earlier reported.

Since then, costs of operating a yacht, including labor and material prices, have skyrocketed — pricing aspiring superyacht owners out of the already exclusive market.

A buyer placing an order for a new superyacht more than 200 feet long today, for example, should expect to wait as long as four years to actually enjoy the glittering asset, Dazert told CNBC.

Superyachts of this size, more than 200 feet to roughly 650 feet, took the biggest sales hit in 2023, falling 40%.

And this year, Dazert told CNBC that he’s expecting new superyacht sales to “go down a little bit further this year” given the continued costs and delays.

The main reason for the hefty drop: Russian oligarchs have dropped out of the market following the Ukraine invasion by the country in 2022, according to SuperYacht Times’ report.

“The Russians were prone to ordering very extravagant and very large yachts,” Dazert told CNBC.

The US government has seized multiple vessels owned by Russian billionaires — including one called Amadea owned by Suleiman Kerimov, a money launderer who profited from the Kremlin.

Amadea, the 348-foot vessel that was seized at the request of the US government in Fiji in April 2022 , has since cost American taxpayers $600,000 a month to maintain.

The hefty monthly tab includes $360,000 in payments to the crew, plus $75,000 for fuel and $165,000 in other maintenance, like waste removal and food, according to court papers filed by the US in Manhattan earlier this year.

Authorities are also on the hook for Amadea’s $1.7 million annual insurance bill and have therefore asked a judge to sell the superyacht after it undergoes $5.6 million in repairs.

Sanctioned Russian businessman Viktor Vekselberg also had his $90 million, 255-foot superyacht , Tango, seized in Spain last March at the request of the US government. 

The US has hoped that by seizing the property of wealthy Russian leaders, it will punish them for backing the war.

However, not all superyacht owners are Russian.

Per SuperYacht Times’ report, Americans accounted for nearly 25% of all sales in 2023, CNBC reported, though Americans tend to build smaller yachts compared to Middle Eastern and Russian buyers.

The average length of a Saudi-owned superyacht is 202 feet, for reference, compared to 200 feet for Russian buyers and 177 feet for the Americans, according to the report.

One American who defied the statistics: Amazon founder Jeff Bezos, who purchased a $500 million, 417-foot massive superyacht named Koru last year.

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Cruising the Moskva River: A short guide to boat trips in Russia’s capital

There’s hardly a better way to absorb Moscow’s atmosphere than on a ship sailing up and down the Moskva River. While complicated ticketing, loud music and chilling winds might dampen the anticipated fun, this checklist will help you to enjoy the scenic views and not fall into common tourist traps.

How to find the right boat?

There are plenty of boats and selecting the right one might be challenging. The size of the boat should be your main criteria.

Plenty of small boats cruise the Moskva River, and the most vivid one is this yellow Lay’s-branded boat. Everyone who has ever visited Moscow probably has seen it.

This option might leave a passenger disembarking partially deaf as the merciless Russian pop music blasts onboard. A free spirit, however, will find partying on such a vessel to be an unforgettable and authentic experience that’s almost a metaphor for life in modern Russia: too loud, and sometimes too welcoming. Tickets start at $13 (800 rubles) per person.

Bigger boats offer smoother sailing and tend to attract foreign visitors because of their distinct Soviet aura. Indeed, many of the older vessels must have seen better days. They are still afloat, however, and getting aboard is a unique ‘cultural’ experience. Sometimes the crew might offer lunch or dinner to passengers, but this option must be purchased with the ticket. Here is one such  option  offering dinner for $24 (1,490 rubles).

If you want to travel in style, consider Flotilla Radisson. These large, modern vessels are quite posh, with a cozy restaurant and an attentive crew at your service. Even though the selection of wines and food is modest, these vessels are still much better than other boats.

Surprisingly, the luxurious boats are priced rather modestly, and a single ticket goes for $17-$32 (1,100-2,000 rubles); also expect a reasonable restaurant bill on top.

How to buy tickets?

Women holding photos of ships promise huge discounts to “the young and beautiful,” and give personal invitations for river tours. They sound and look nice, but there’s a small catch: their ticket prices are usually more than those purchased online.

“We bought tickets from street hawkers for 900 rubles each, only to later discover that the other passengers bought their tickets twice as cheap!”  wrote  (in Russian) a disappointed Rostislav on a travel company website.

Nevertheless, buying from street hawkers has one considerable advantage: they personally escort you to the vessel so that you don’t waste time looking for the boat on your own.

Prices start at $13 (800 rubles) for one ride, and for an additional $6.5 (400 rubles) you can purchase an unlimited number of tours on the same boat on any given day.

Flotilla Radisson has official ticket offices at Gorky Park and Hotel Ukraine, but they’re often sold out.

Buying online is an option that might save some cash. Websites such as  this   offer considerable discounts for tickets sold online. On a busy Friday night an online purchase might be the only chance to get a ticket on a Flotilla Radisson boat.

This  website  (in Russian) offers multiple options for short river cruises in and around the city center, including offbeat options such as ‘disco cruises’ and ‘children cruises.’ This other  website  sells tickets online, but doesn’t have an English version. The interface is intuitive, however.

Buying tickets online has its bad points, however. The most common is confusing which pier you should go to and missing your river tour.

“I once bought tickets online to save with the discount that the website offered,” said Igor Shvarkin from Moscow. “The pier was initially marked as ‘Park Kultury,’ but when I arrived it wasn’t easy to find my boat because there were too many there. My guests had to walk a considerable distance before I finally found the vessel that accepted my tickets purchased online,” said the man.

There are two main boarding piers in the city center:  Hotel Ukraine  and  Park Kultury . Always take note of your particular berth when buying tickets online.

Where to sit onboard?

Even on a warm day, the headwind might be chilly for passengers on deck. Make sure you have warm clothes, or that the crew has blankets ready upon request.

The glass-encased hold makes the tour much more comfortable, but not at the expense of having an enjoyable experience.

Getting off the boat requires preparation as well. Ideally, you should be able to disembark on any pier along the way. In reality, passengers never know where the boat’s captain will make the next stop. Street hawkers often tell passengers in advance where they’ll be able to disembark. If you buy tickets online then you’ll have to research it yourself.

There’s a chance that the captain won’t make any stops at all and will take you back to where the tour began, which is the case with Flotilla Radisson. The safest option is to automatically expect that you’ll return to the pier where you started.

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Jefferies CEO sold $65 million in stock to buy a yacht from a client

• Jefferies CEO Rich Handler sold $65 million in company stock to buy a luxury yacht.
• He's said to be buying a Westport 164 from his friend Tilman Fertitta, a Jefferies client.
• Handler said on Wednesday that he wasn't planning any more stock sales.

Jefferies CEO Rich Handler sold $65 million of his stock in the company to buy himself a gift — a luxury yacht.

Handler sold 1.5 million shares , or 7% of his holdings, to purchase a "personal boat and to pay tax obligations," the investment bank said in a Wednesday statement.

"My sale of shares today was a gift to myself and my family, and I do not intend to sell any further shares," Handler said in the statement. "I remain extremely bullish on Jefferies."

Related stories

A source told the Financial Times the boat was a Westport 164 yacht and was being purchased from Handler's longtime friend Tilman Fertitta, a Jefferies client.

Fertitta is the billionaire CEO of the hospitality company Landry's and owns the Houston Rockets, an NBA team. The two men jointly own Landcadia Holdings, a blank-check company.

Jefferies said in the statement that Handler, who's been with the bank since 1990, had received about 70% of his pay in the form of company shares. The bank said he'd previously sold shares only for tax purposes and charity.

Jefferies didn't immediately respond to a request for comment from Business Insider.

Investors often view executives' stock sales as signaling a lack of company confidence, so any sales are carefully messaged.

In October, JPMorgan Chase CEO Jamie Dimon said he would sell 1 million of his 8.6 million shares, his first sale since becoming CEO in 2006. The filing announcing the planned sale said that Dimon chose to sell the stocks "for financial diversification and tax-planning purposes" and that he "continues to believe the company's prospects are very strong."

Dimon sold the first of the sets of shares in February for $150 million and sold the remainder earlier this month, pocketing $183 million in total proceeds.

Watch: Truth Social just brought Trump a $4 billion windfall, but experts aren't sold

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