Hong Kong has stated that it will not confiscate the megayacht of a sanctioned Russian oligarch.
John Lee, Hong Kong’s chief executive, stated that the territory will adhere to United Nations sanctions but not “unilateral” restrictions imposed by “particular jurisdictions.”
The yacht is owned by Alexei Mordashov, a close associate of Russian President Vladimir Putin and one of the country’s wealthiest individuals.
Last Thursday, his yacht arrived in Hong Kong after sailing from Russia.
However, Mr. Mordashov is not thought to be on it. The billionaire was sanctioned by the United States, the United Kingdom, and the European Union after Russia invaded Ukraine earlier this year.
However, Hong Kong’s administration stated that it was not subject to these restrictions. The multi-story Nord superyacht has been a prominent presence in Victoria Harbour for close to a week, with the Russian flag flying from its mast.
Mr. Lee, himself sanctioned by the United States for his involvement in enacting Hong Kong’s oppressive national security law, stated, “We will comply with United Nations sanctions, that is our system, that is our rule of law.”
Hundreds of Russians and their businesses have been sanctioned by the United States, the European Union, and the United Kingdom. However, China has remained a Russian ally and has not denounced Moscow’s invasion of Ukraine.
A spokesperson for the US State Department stated, “Hong Kong’s image as a financial center hinges on its adherence to international rules and regulations.” “The potential use of Hong Kong as a haven by persons escaping sanctions from numerous jurisdictions casts more doubt on the business environment’s transparency.
The unknown is the duration of the superyacht’s stay in Hong Kong’s waterways.
The representative for Mr. Mordashov informed Bloomberg News that the steel magnate was in Moscow. According to Forbes, he was Russia’s richest man before the war in Ukraine, having amassed a $29.1 billion fortune through his steel and mining company, Severstal.
The Nord is presumably his largest yacht asset. Forbes describes the 465-foot (141-meter) yacht as one of the most opulent vessels in the world.
The millionaire had previously lost one of his smaller vessels, the 66-meter Lady M, to Western sanctions in March, when it was confiscated by Italian authorities in the port of Imperia.
Several Russian oligarchs’ vessels have been impounded or denied admission into European ports this year as a result of sanctions imposed by the West in response to the conflict in Ukraine.
This has led to the relocation of such vessels to ports in Asia, Turkey, and the Caribbean that are regarded as outside the reach of Western sanctions.
