The European Union’s General Court has rejected a legal challenge by British Virgin Islands-based company Sulberg Services, to annul EU decisions that led to the seizure of Meridian A, formerly known as Valerie.

Spanish authorities seized the yacht in March 2022, while it was docked at Marina Vela in Barcelona for a refit. The 85-metre Lürssen has since become emblematic of the legal battles stemming from EU sanctions imposed due to Russia’s ongoing conflict with Ukraine.

The yacht was initially tied to Anastasia Ignatova, step-daughter of prominent Russian oligarch and CEO of state-owned defence and technology corporation Rostec, Sergei Chemezov.  

Meridian A was initially registered (as Valerie) under Delima Services, a British Virgin Islands company, which was connected to Ignatova on paper. Then Sulberg Services, formerly Delima Services, was listed as the yacht’s registered owner, with Ignatova as the ultimate beneficiary.

However, in July 2021, ownership of Sulberg Services was reportedly transferred to an unnamed individual referred to as “A” in court documents. Sulberg Services argued that because Ignatova no longer owned the yacht, the seizure was therefore unjustified. The EU General Court then dismissed Sulberg Services’ case because it did not meet the legal requirements for annulment.

In simple terms, the court said that only decisions that directly affect legal rights or responsibilities can be cancelled. Sulberg Services was challenging the explanation behind the sanctions (why Ignatova was listed as the former owner of the yacht) rather than the actual decision to impose the sanctions. Since their challenge focused on the reasoning rather than a decision with direct legal consequences, the court ruled that it wasn't something they could legally overturn.

The Court noted that updating Ignatova’s ownership status didn’t have a direct impact on Sulberg Services. The yacht was seized based on earlier sanctions, and simply changing the records to show she was no longer the owner doesn’t require Spanish authorities to release the yacht. The Court also pointed out that the EU didn’t specifically order the yacht’s seizure—this was something handled by Spanish authorities as part of their broader enforcement of EU sanctions.

Now, the sanctions and seizure of the yacht, which were based on earlier actions tied to Russia’s involvement in Ukraine, continue to apply. Even though the ownership of the yacht may have changed and is listed under a different name and entity, this doesn’t alter its seized status.

Practically speaking, this means the yacht will remain immobilised in Barcelona, as Spanish authorities, acting under the EU sanctions framework continue to enforce the seizure. Despite efforts to distance the yacht from its previous ownership ties, it remains caught in the net of sanctions, unable to operate or be sold freely.

The court’s decision doesn’t force the release of the yacht, or offer Sulberg Services any immediate legal recourse to change its status either. The ongoing legal issues, coupled with unpaid maintenance fees, likely mean the yacht will remain in limbo until the broader sanctions or legal disputes are resolved.

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