In light of the sanctions imposed by the United States on authoritarian nations such as Russia and the Middle East, Hong Kong, and has become a major gateway for these countries to circumvent the restrictions. According to a study conducted by the grassroots organization “Liber Research Society,” the number of Russian enterprises registered in Hong Kong in 2022 nearly doubled compared to the same period in 2021. Conversely, numerous European and American companies have expressed their disapproval by withdrawing investments from Hong Kong and relocating their core businesses out of the city.
Hong Kong Deepens Ties with Russia and Iran
According to the latest 2023 third-quarter “Hong Kong Residential Leasing” released by Savills, the residential rental market in Hong Kong has shown increased activity from July to August this year. Of particular note is the heightened interest from higher-budget tenants, including foreign nationals from Russia and the Middle East, who are considering establishing offices in Hong Kong. This has driven an increased demand for luxury apartments and townhouses on Hong Kong Island, resulting in a 4.2 percent increase in the overall townhouse rental index.In fact, the number of foreign companies owned by authoritarian states such as Russia, Iran, and Afghanistan establishing themselves in Hong Kong has been on the rise. According to a survey conducted by the “Liber Research Society” last year, there were as many as 35 newly registered companies in Hong Kong with names containing “俄罗斯” or “Russia,” a significant increase compared to the 13 recorded during the same period in 2021. Among these, four were Russian energy companies, registered in the six months following Russia’s invasion of Ukraine.
