In response to Hong Kong’s announcement that it would not take any action against a luxury yacht allegedly owned by a Kremlin ally, the United States issued a warning on Saturday that the city risked harming its standing as a global financial hub if it provided sanctuary to individuals attempting to evade sanctions.
This Monday, the waterways of the Chinese region welcomed the 142-meter-long, $500 million yacht “The Nord,” which is connected to Russian tycoon Alexei Mordashov.
Mordashov is one of the affluent and influential billionaires associated with Russian President Vladimir Putin who were singled out for sanctions by the West following the invasion of Ukraine.
Several opulent ships have been seized in nations like Fiji and Spain. Hong Kong stated on Friday that while it carries out sanctions imposed by the UN, it is not permitted to do the same for those imposed “unilaterally” by nations or groups.
Ned Price, a spokesman for the US State Department, responded by saying that the possibility of someone using Hong Kong as a safe haven to avoid fines imposed by legal authorities “raises further concerns about the transparency of the economic environment” in the city.
He continued, “Hong Kong’s standing as a global financial hub hinges on its adherence to international rules and regulations.”
In an effort to penalise Moscow for invading Ukraine, the western allies of Ukraine are now focusing on the assets of sanctioned individuals, including the yachts held by Putin proxies.
Italy seized Lady M, a boat owned by Mordashov, in March on the grounds of EU sanctions.
China has refrained from denouncing Russia’s invasion of Ukraine because it claims that relations with Moscow have “no bounds.”
This week, a spokeswoman for Mordashov told Bloomberg News that the tycoon was in Moscow but would not comment on the whereabouts of the yacht.
The Nord changed its flag from the Cayman Islands to the Russian flag in June. The hotel has two helipads, a movie theatre, and more than a dozen opulent rooms.
Before subsequently travelling to Hong Kong, he was anchored in the port of Vladivostok in eastern Russia.
Hong Kong is cautioned by Washington not to host sanctioned Putin allies.
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