The reputation earned by defeating a Varyag is divided up among the following factions:
Trophy & Bounty
When encountered in groups of two or three on the open seas, there is a chance of encountering a Leviathan trophy ship which will drop a Trophy: Barrel of Bits. This trophy may be turned in to the Men of War Pirate Hunter in Tortuga.
According to the sources among the Brethren of the Coast in Tortuga (Notably Captain Kidd himself), they are pirates who practice cannibalism and tends to board ships to have a feast on enemy ships and then left them adrift without any crew. When not intending to eating any live enemy crew they take them home to their hideout where they will be either cooked or ate raw while either still alive or dead.