Hong Kong says it does not enforce sanctions imposed by other countries after superyacht linked to under-fire Russian billionaire arrives
- Officials say the city has no obligation to enforce US, EU and UK sanctions after superyacht linked to Russian billionaire drops anchor off Hong Kong
- But legal experts warn that secondary action could be taken against Hong Kong companies that do business with the vessel
Hong Kong has no obligation to enforce Western sanctions against a superyacht linked to a Russian billionaire that has dropped anchor off the city, the government has said, although one legal expert warned ignoring them could invite fresh penalties against entities based in the financial hub.
A Marine Department spokeswoman said penalties imposed by the United States, European Union and Britain on Alexei Mordashov, a steel and mining tycoon thought to be an ally of Russian President Vladimir Putin, over the country’s invasion of Ukraine had no force in Hong Kong.
She was speaking after the HK$3.9 billion (US$500 million) Russian-flagged Nord, believed to be owned by Mordashov, arrived in Hong Kong waters, which sparked warnings from lawyers about possible punitive action against city entities that did business with the vessel.
The legal experts also said the government should use caution after the arrival of the Nord to avoid the city’s image as an international shipping centre being tarnished.
“The main risk from non-participation in the sanctions initiative is that the US or other participants could eventually choose to apply secondary sanctions targeting Hong Kong-based entities that engage in business dealings with the Russian state, companies, or individuals,” Ryan Mitchell, an assistant professor and international law specialist at Chinese University of Hong Kong, told the Post.
The 142 metre (466 feet) Nord was anchored in Victoria Harbour, to the south of Tsing Yi and north of Green Island, on Wednesday after leaving Vladivostok, a Russian Pacific port, on September 28.
Another luxury vessel, the HK$432 million superyacht Lady M, also linked to Mordashov, was seized by the Italian financial police earlier this year after it docked in the port of Imperia.