Putin ‘panics’ as luxury yacht flees port over seizure fear after Truss ultimatum

The 82 metre-long vessel named Graceful was spotted sailing through the Kiel Canal towards the Baltic Sea towards Russia. Built in 2014, with a price tag of £73 million, the yacht had been docked at the Blohm+Voss shipyard in the German city where it had been for months.

The boat was sighted between the island of Rügen in Germany and the Danish island of Møn on Tuesday morning, according to local media.

It came after Foreign Secretary Liz Truss spoke of severe sanctions against Russia at the end of January.

She said: “Whether you support Russia’s aggressive actions against Ukraine, or you’re of wider significance to the Kremlin, we will have the power to sanction you.

“Nothing is off the table and there will be nowhere to hide. This will amount to the toughest sanctions regime against Russia we have had in place yet, and mark the biggest change in our approach since leaving the European Union.”

According to a report in German news website Kieler Nachrichten, the giant yacht docked in September and had two balconies installed as well as its engines overhauled.

Ms Truss flew to Moscow on Wednesday to meet her Russian counterpart Sergei Lavrov and discuss the situation in Ukraine.

She said: “I’m visiting Moscow to urge Russia to pursue a diplomatic solution and make clear that another Russian invasion of a sovereign state would bring massive consequences for all involved.

“Russia has a choice here. We strongly encourage them to engage, de-escalate and choose the path of diplomacy.”

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The Kremlin told Britain on Wednesday to drop its rhetoric on sanctions or face the likelihood that their meetings will be short.

Defence Secretary Ben Wallace joined Ms Truss on the trip amid a standoff over a Russian troop buildup near Ukraine which is fuelling fears Moscow may attack.

Moscow is demanding a formal veto on Ukraine ever joining the Nato military alliance and denies planning an invasion.

Russia’s TASS news agency reported that the country’s ambassador to London, Andrey Kelin, said Moscow was interested in the talks if Britain had constructive proposals to make in response to Moscow’s security demands.

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He said: “If they’re coming to Russia to threaten us again with sanctions then it is fairly pointless: we read everything, see everything, know and hear.

“In this case, the dialogue and conversation in Moscow will be probably fairly short.”

Prime Minister Boris Johnson is due to meet Poland’s Prime Minister Mateusz Morawiecki and President Andrzej Duda on Thursday as part of an effort to reassure eastern European allies about the UK’s support.

Ukraine’s Foreign Minister Dmytro Kuleba said on Wednesday that there is still a chance to resolve the West’s standoff with Russia through diplomacy but grounds already exist to impose sanctions.

Reuters reports Mr Kuleba as saying that Russia had already violated international law and this provided a basis for imposing sanctions.

He referred to Russia issuing passports to Ukrainian citizens in separatist-controlled areas of eastern Ukraine.

Mr Kuleba said: “Some sanctions could have been imposed earlier as well as right now in order to demonstrate the seriousness of intentions and readiness for decisive action.”

More than 700,000 Russian passports have been issued to residents of eastern Ukraine since separatists seized territory there in 2014.

Russia’s parliament is due to discuss making an appeal Mr Putin to recognise the breakaway areas as independent states.

Moscow denies violating any international laws in its buildup of troops near Ukraine.

Additional reporting by Monika Pallenberg