Turkey Sees Opportunity in Sanctioned Russian Yacht Market

 

Since the Russia-Ukraine war started in 2022, Turkey has become a popular destination for Russian superyachts evading western sanctions. Reportedly, this has created a new business venture for Turkish yards looking into repair and maintenance of these luxury vessels. In the past one year, some shipyards based in Tuzla, Istanbul have been expanding their capacity to service superyachts.

Last week, KRM Yacht Refit & Rebuild reported completing the installation of a 900-ton lift mobile crane, said to be the largest of its kind in Turkey. This new lift ability will allow the KRM yard in Tuzla to accommodate yachts of up to 70 meters in length.

In an interview with the Turkish media Patronlar Dunyasi, the founder of the KRM Shipyard Kerem Baser, said that the new capacity will allow his yard to repair and renew larger yachts.

“Most Russian billionaires’ yachts are currently in Turkey. They have been wanting to renovate these yachts but our previous crane could only handle smaller vessels of up to 40 meters in length. Looking ahead, we are aiming to handle renovation of yachts of up to 100 meters,” commented Dunyasi.

With intensifying economic sanctions from the West, superyachts linked to Russian oligarchs are now unable to access repair and maintenance services from European yards. According to Dunyasi, this presents a lucrative opportunity for Turkish yards.

“It is not just about maintenance and repair; the yachts can be entirely renewed or even redesigned. If a yacht is from a good manufacturer, refitting it could cost more than $6 million. This will open up new opportunities for Turkish manufacturers operating in the Tuzla shipyard ecosystem,” added Dunyasi.

Turkey maintains a neutral stance on the ongoing Russia-Ukraine war. As a result, Turkish waters have become a safe haven for superyachts linked to Russia.