Video - Russian Presence at Monaco Yacht Show 2014

In this video by Bloomberg filmed during last week’s Monaco Yacht Show, some of the yachting industry’s leading experts discuss how the situation in the Ukraine could impact the future of the Russian superyacht market.

The Russian client base for superyachts has long been one of the strongest in the industry and a significant aspect of the sales and charter markets, with the last four years seeing a 130 per cent increase in ownership of luxury yachts measuring over 40m. Around 8 percent of the world’s superyachts are owned by Russian’s and as the most important superyacht meeting of the year, the Monaco Yacht Show offered a good indication of how the situation is faring following a wave of recent economic sanctions.

Broker awaiting tender at the 2014 Monaco Yacht Show
Overview of Monaco Yacht Show 2014

Around 8 percent of the world’s superyachts are owned by Russian’s

Over the past few months the U.S. and Europe have responded to President Vladimir Putin’s incursions into Ukraine by blacklisting dozens of Russian political and business leaders as well as placing restrictions on companies and industries. Subsequently professional within the luxury yachting sector have had to prepare for what could have negative effects of the future of sales and charters by Russian clients. 

Evening event at the Monaco Yacht Show

Jonathan Beckett of Burgess commented: ‘People could be struggling to take money out of Russia. It’s all about timing and perception. Is it the right time to be seen enjoying yourself on a yacht?’ Peter Lürssen of Lürssen also said that the German shipyard has seen some hesitation from Russian clients with regards to new orders, although at present concern is being limited as only time will tell the full effects. The luxury yacht charter market has however shown very positive signs so far in 2014, with the volume of business notably increased compared to last year.

For further details about attending the 2015 Monaco Yacht Show or about planning your next luxury yacht charter vacation, contact your preferred charter broker.

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