Ukrainian-controlled Royal Romance has been temporarily relocated under armed escort for technical maintenance nearly two and a half years after its initial seizure.

The move coincides with Ukraine’s efforts to strengthen its legal framework to manage and eventually liquidate seized assets, though key judicial obstacles remain unresolved.

Ukraine’s Asset Recovery and Management Agency (ARMA) confirmed that the 92.5-metre vessel, linked to sanctioned Ukrainian oligarch and pro-Russian politician Viktor Medvedchuk, was relocated from its berth at the naval base in Split, Croatia, to a shipyard in Trogir.

The relocation was carried out under joint escort by Croatian police and private security. ARMA stated that following the completion of maintenance work, the yacht will be returned to Split and remain under arrest.

Once the yacht returns to base, ARMA will apply to the Office of the Prosecutor General to initiate the next phase of the asset realisation process under current legislation.

The transfer reflects Kyiv’s broader push to reinvigorate its asset recovery programme amid growing frustration over the legal paralysis surrounding the yacht’s ultimate fate and its fruitless endeavours thus far.

Medvedchuk, a former MP and close Putin associate escaped house arrest in February 2022 but was recaptured in April and later handed over to Russia in a prisoner exchange. He remains under international sanctions imposed by Ukraine, the EU and the US.

The yacht’s relocation follows major legal reforms adopted by Ukraine’s parliament this month.

The Verkhovna Rada passed sweeping amendments to ARMA’s governing legislation, formally expanding its mandate to manage, monetise and ultimately liquidate foreign-owned assets linked to Russia and Belarus. It’s a provision that previously led to repeated legal standstills, including last year’s Royal Romance auction collapse.

The reforms establish particularly pertinent clear deadlines for prosecutors to transfer seized assets to ARMA, enabling the agency to conduct valuations, appoint external managers, and prepare assets for sale under a more predictable legal framework.

Management appointments must now occur via open public tenders through Ukraine’s Prozorro procurement system, a move intended to reduce the risk of opaque or politically influenced decisions.

To further build public and international trust, the law mandates full quarterly reporting by ARMA, with disclosure of management contracts, revenue, asset performance and associated costs.

An external audit mechanism and an independent public oversight council have also been introduced to strengthen governance. The legislation also creates a dedicated fund to channel proceeds from the sale of seized assets directly into Ukraine’s reconstruction rather than into general state revenues.

“The unblocking of corporate rights management is a historic decision for the state,” says Olena Duma, head of ARMA. “The public, international partners, citizens and defenders have all been waiting for these changes, which will ensure new systemic revenues for the state budget, a key element of Ukraine’s recovery, funded by the assets of the aggressor and its accomplices.”

What happens next is still speculative, but a relatively obvious inference is that Kyiv will look to offload the vessel quickly.

Before seizure, the yacht was privately owned by Medvedchuk and never chartered publicly, so all upkeep was covered out of pocket.

Since 2022 however, Royal Romance has remained under arrest in Croatian waters, with ongoing maintenance costs reportedly exceeding €20 million annually. These expenses are now being met by the Ukrainian state via ARMA.

Under the new legal framework, these outlays are expected to be offset by proceeds from any eventual sale, with remaining funds directed into Ukraine’s dedicated reconstruction fund. This likely means there will be increasing pressure from Ukrainian citizens to see an end to the eye-watering costs as the war rages on.

So, despite the new powers, the ultimate sale of the forgotten Feadship remains contingent on further judicial authorisation in Ukraine, close coordination with Croatian authorities and the resolution of any legal challenges from owners. 

But Kyiv’s latest legal reforms signal a renewed effort to break the deadlock and channel sanctioned wealth towards Ukraine’s reconstruction after several failed attempts and end mounting expenses.

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