Italy blocked the multimillion-dollar sale of two luxury yachts for Kim Jong Il

Italy blocked the multimillion-dollar sale of two luxury yachts that Italian police say were destined for North Korean leader Kim Jong Il in violation of international sanctions.

The 105-foot and 95-foot Italian-made seafaring vessels were ordered from the Azimut-Benetti boatyard, a maker of luxury yachts near Turin, by an Austrian company. A Chinese company stepped in later to complete the purchase, Italy’s Economic Development Ministry said.

Italian financial police said the Chinese company paid a Hong Kong business to take delivery of the vessels, valued at nearly €13 million ($18.5 million).

An investigation determined that the yachts ultimately were bound for the reclusive communist nation in violation of international sanctions barring sale of luxury goods to North Korea, the ministry said.

Col. Antonio Leone, the financial-police commander in Lucca, said “it is an irrefutable fact” that Mr. Kim was the intended final recipient, according to Reuters. “There has been a thorough investigation, partly in Austria, backed up by confessions and investigative breakthroughs,” he said.

A person answering the phone at the North Korean Embassy in Rome said no one was available to comment.

The yachts were initially confiscated by Italy’s Economic Development Ministry but have since been returned to the boatyard, which has been allowed to keep the deposit. Azimut-Benetti isn’t accused of wrongdoing and has cooperated fully in the investigation, police said.

The sale of luxury goods to North Korea is banned under a United Nations resolution in retaliation for the impoverished nation’s nuclear-weapons program.

The U.N. Security Council unanimously voted to widen its sanctions after a North Korean nuclear test May 25.

Source : http://online.wsj.com/article/SB124839615293477775.html

Tags: Azimut Benetti Group

Category: Brokerage News