HK Refused to Seize Sanctioned Russian Superyacht

Hong Kong refused to seize the superyacht of a Russian oligarch who is the target of Western sanctions. Chief executive John Lee stated that Hong Kong will be subject to penalties imposed by the UN but not "unilateral" ones by "individual jurisdictions."

Hong Kong refuses to act on sanctioned Russian superyacht

For those unknown, Alexei Mordashov, one of Russia's wealthiest individuals and a close confidant of President Vladimir Putin, is the owner of the $521 million (£472 million) boat. His yacht made its way from Russia to Hong Kong last week. However, it is uncertain whether Mr. Mordashov is on it. Furthermore, after Russia invaded Ukraine earlier this year, the US, UK, and EU imposed sanctions on the tycoon. However, the administration of Hong Kong asserted that it was not subject to those sanctions. Additionally, the multi-story Nord superyacht has been a noticeable presence in the city's Victoria Harbour for about a week now, with the Russian flag flying at its mast. Moreover, according to Mr. Lee, who has been personally sanctioned by the US for his involvement in putting Hong Kong's repressive national security law into effect, "We will comply with United Nations sanctions, that is our system, that is our rule of law." Besides, the US, EU, and the UK have sanctioned numerous Russians and their businesses. But, China, on the other hand, remained a Russian ally and has not yet denounced Moscow's decision to attack Ukraine. According to a US State Department spokesman, "Hong Kong's reputation as a financial center depends on adherence to international laws and standards. The possible use of Hong Kong as a safe haven by individuals evading sanctions from multiple jurisdictions further calls into question the transparency of the business environment."

What's More

How long the superyacht will stay in Hong Kong's waterways is unclear. However, Mr. Mordashov's spokesman revealed that the steel magnate was in Moscow. According to Forbes, he was the richest man in Russia before the Ukraine War with a fortune of $29.1 billion amassed through his steel and mining firm Severstal. In addition, the Nord is likely his most valuable yacht. Forbes reported that the 465-foot (141m) yacht is one of the most opulent vessels in the world and is bigger than a football field. Most importantly, several Russian oligarchs' yachts have been seized or denied entry to European ports this year under Western sanctions related to the war in Ukraine. Therefore, this led to the relocation of such boats to regions of the world thought to be immune to Western sanctions, such as ports in Asia, Turkey, and the Caribbean.