Topline
Hong Kong will not seize a superyacht linked to Russian billionaire Alexey Mordashov docked in its harbor, chief executive John Lee said on Tuesday, dismissing Western warnings that the city’s status as a global financial hub is at risk if it serves as a safe haven for businesses and individuals sanctioned over the war in Ukraine.
The superyacht “Nord” is docked in Hong Kong’s harbor.
Key Facts
Hong Kong will not enforce Western sanctions imposed by individual countries or blocs as they have “no legal basis” under the city’s legal system, Lee told journalists on Tuesday.
Hong Kong will comply with United Nations sanctions, Lee said, even though they are unlikely given Moscow’s permanent seat on the organization’s security council, which comes with the power to veto international sanctions.
Lee dismissed U.S. calls for Hong Kong to seize Nord, the 465-foot superyacht tied to Mordashov, and said it could not do anything without legal grounding.
News Peg
Nord, which is worth $521 million, arrived in Hong Kong from Russia last week and has been docked prominently in the city’s harbor since. Mordashov, the billionaire linked to the vessel, was sanctioned by the U.S., U.K. and EU over his close ties to Russian President Vladimir Putin after Moscow invaded Ukraine. Hong Kong has sparred with Washington over the matter and U.S. officials bristled over the vessel’s brazen display and urged Hong Kong authorities to implement sanctions. The U.S. State Department warned that allowing individuals to evade sanctions in Hong Kong calls the city’s status as a global financial hub into question.
Key Background
Hong Kong’s global reputation has already come under fire for providing Russian firms a means of avoiding sanctions. It compounds longrunning tensions between the city’s ambition to court Western business and its growing proximity to Beijing, particularly with the introduction of sweeping new security laws, for which many officials, Lee included, have been sanctioned by the U.S. over. The city is still struggling to recover from strict isolationist policies during the Covid-19 pandemic, which further hurt the city’s reputation as a global hub.
Forbes Valuation
$18.2 billion. That’s the estimated net worth of Mordashov, according to Forbes’ real-time tracker. The figure makes him one of Russia’s richest men and Forbes ranks him as the 82nd richest person in the world.
Further Reading
How Sanctioned Russian Billionaires Are Trying To Loosen Europe’s Grip On Their Superyachts (Forbes)
Russian Firms Turn to Hong Kong in Bid to Avoid Sanctions (Bloomberg)
Source: https://www.forbes.com/sites/roberthart/2022/10/11/hong-kong-refuses-us-calls-to-seize-sanctioned-billionaires-docked-superyacht/