The vessel is being escorted by two Russian Navy ships, while its route is being monitored by NATO forces, the report said.
According to the publication, the 82-meter yacht, valued at about 100 million pounds ($137 million), is sailing along Norway's coast. Anti-drone nets have been spotted on its deck. The yacht is being escorted by the Russian destroyer Severomorsk and the patrol and rescue vessel Voyevoda.
A NATO source told the publication that German and Danish naval vessels tracked the yacht and its escort through the Baltic Sea, and allied forces continue to monitor the convoy.
According to U.S. authorities, Putin has repeatedly used the yacht, including for a 2021 trip across the Black Sea with Alexander Lukashenko. The vessel is equipped with freshwater and seawater swimming pools, a helipad, a gym and secure government communications systems.
Before Russia's full-scale invasion of Ukraine, the yacht was moved from a shipyard in Hamburg, Germany, to Kaliningrad. After the United States imposed sanctions in 2022, the vessel was renamed Kosatka and largely disappeared from public view for nearly four years.
The yacht put to sea again for the first time last week. While transiting the Danish straits, it transmitted its location via its Automatic Identification System (AIS), but the signal was switched off after it entered the North Sea. The escort vessel Voyevoda, however, continued transmitting its position.
Former British defense attaché to Moscow John Foreman said the yacht's movement is likely linked to concerns over further Ukrainian attacks. According to him, the Kremlin is seeking to move the vessel as far away as possible following recent Ukrainian long-range drone strikes on the Russian naval base in Kronstadt.
Naval analyst Emma Salisbury said the decision to escort the yacht with warships reflects the Kremlin's exceptionally high level of caution. In her view, Putin "does not want to risk the vessel being seized by Western countries or destroyed by Ukrainian forces."
According to The Telegraph, Graceful is the second yacht linked to Putin to leave European waters.
On June 30, another luxury vessel, Victoria, departed the Black Sea for the Turkish resort of Bodrum.