Friends or foes? Russian superyachts cause a stir at V&A Waterfront

A Cape Town stopover for two superyachts linked to Russian oligarchs has raised fresh concerns about South Africa’s stance on the war in Ukraine.

Megayachts Anna and Cloudbreak this week towered above curious visitors at the V&A Waterfront, which has seen a surge in superyacht arrivals due to the security crisis in the Red Sea that has affected Suez Canal shipping.

Although local port stakeholders declined to name the vessels’ owners, Anna and Cloudbreak are both widely reported to belong to Russian billionaires — Anna to former fertiliser tycoon Dmitry Rybolovlev, and Cloudbreak to Moscow property owner Alexandr Svetakov, who is on a US Treasury list of oligarchs with close links to Russian President Vladimir Putin.  Both superyachts left Cape Town earlier this week, heading up the West Coast.

But although many marvelled at the floating palaces, for others the vessels symbolised pain and drew condemnation of South Africa’s close diplomatic ties with Russia.

While the yachts soaked up Cape Town’s winter sun against the spectacular backdrop of Table Mountain, in Ukraine people suffered under intensified bombardment by Russian missiles and drones.

And whereas South Africa was quick to condemn Israeli atrocities in Gaza, Pretoria is largely silent about similar carnage in Ukraine, according to Dzvinka Kachur, honorary president of the Ukraine Association of South Africa.

“All oligarchs in Russia are closely correlated with the government, and their profits contribute to the war,” Kachur said.

“While it is noble to provide a safe port to any vessel during the difficult security situation, we have to remember that Russia, for  27 months, has been spending billions of dollars on unjust, unprovoked military aggression in Ukraine, destabilising the international financial situation and global food security, that also impacts the African continent.

“We hope that South Africa will apply the same human rights-based, principled foreign policy towards Russia that is killing Ukrainian civilians and destroying energy systems, water supply, and farms, as it does in the case of some other conflicts,” Kachur said.

Nicholas Lorimer, geopolitics researcher at the Institute of Race Relations, said hosting Russian superyachts, while not technically illegal, would reinforce the view that South Africa is “strongly aligned with the anti-Western bloc despite our claims of neutrality”.

“By itself, this issue is not necessarily that big a deal, South Africa is officially neutral, which is just as well, as we have little ability to influence the conflict. Considering our economic situation, most South Africans would welcome tourism, investment or spending, even if it came from controversial sources. If no laws are being broken, there is little need for government to act. 

“That being said, playing host to flashy superyachts of Russian oligarchs will sharpen perceptions in the West that we are not neutral as we claim, but rather that we have taken the side of Russia and its allies in China and Iran. There has been a whole range of actions by the South African government that show its sympathies lie much more with Russia,” Lorimer said.

These actions include hosting Russian cargo planes, naval exercises with the Chinese and Russian navies, and the infamous “Lady R incident” in December 2022 when a sanctioned Russian cargo ship docked in Simon’s Town and prompted a diplomatic row  between South African and the US.

At stake is South Africa’s preferential trade access to the lucrative US market, articulated in the African Growth & Opportunity Act. Some US lawmakers, accusing South Africa of siding with Washington’s foes and rivals, are pushing for it to be kicked out of the Agoa pact.

However Cape Town maritime stakeholders this week said accommodating the Russian superyachts was a maritime obligation, not a diplomatic faux pas.

“We are governed by what our government allows us to do — and if the government allows vessels to come here we certainly can’t stop them coming here and then we need to welcome them and give them the facilities and services they need,” said Bruce Tedder, co-director of maritime umbrella body BlueCape.

“Certainly the influx of superyachts is because of the Red Sea crisis and Cape Town is a safe haven and port of refuge, and if vessels need to come to get fuel and supplies, by International Maritime Organisation regulations we have to oblige,” Tedder said in response to Sunday Times queries.

Well-placed sources said one of the superyachts spent R10m on a diesel refill. The 110m Anna is reportedly worth R4.6bn and can accommodate 16 guests and 32 crew. It has annual running costs of R462m, according to the Superyacht Fan website. Onboard comforts reportedly include a beauty salon, elevator, underwater lights and beach club. 

Cloudbreak is similarly opulent, available for charter at R15m a week, and has a state-of-the-art cinema.

V&A spokesperson Donald Kau said: “There is no legal basis for us to deny any boat berthing for refuelling and replenishment, as we are seeing with the boats calling into the Waterfront.”

Details of visiting superyachts, including ownership and itineraries, are closely guarded by local shipping agencies, with crew members usually required to sign non-disclosure agreements.

One prominent local shipping agency said it could not divulge vessel details without express permission off the owners. “We have had the pleasure of representing the majority of the superyachts that have called recently to visit Cape Town,” said the agency spokesperson, who requested anonymity.

“This [influx] is definitely due to the Red Sea situation and unless that crisis continues, it is unlikely that we will see such a volume in the long run at our ports as obviously it is cheaper and shorter to transit Suez.

“There is no doubt that Cape Town port and the Waterfront in particular  have the potential to expand this business… These vessels do spend a large amount of money when they call, which of course benefits the local economy in many aspects.”

Cape Town mayor Geordin Hill-Lewis said: “Assuming none of them [the vessels] are the subject of global sanctions, they’re all welcome here and we love having more people in Cape Town. This all adds to our tourism and maritime economy and helps create more new jobs in Cape Town.” 

Although neither Cloudbreak nor Anna appear on the sanctioned superyacht list, Svetakov has been targeted for sanctions by Ukraine.

According to the listing by Ukraine’s National Agency on Corruption Prevention, Svetakov “conducts commercial activities in sectors of the economy that provide a high revenue part of the budget of the Russian Federation, which is responsible for the war in Ukraine, that is, it is a significant source of income for waging war”.