US Warns Hong Kong May Be Used as a Safe Haven for Sanctioned Russian Tycoon Yachts

Sanctioned Russian tycoon Mordashov's superyacht Nord found moored on Hong Kong waters on Oct. 5, 2022. (Big Mack/The Epoch Times)

Superyacht Nord believed to be owned by Alexei Mordashov, the Russian steel oligarch who is sanctioned by many countries, was docked in Hong Kong waters on Oct. 5. A spokesman for the U.S. Department of State was quoted by the Financial Times as saying that some people might use Hong Kong as a safe haven to avoid sanctions, which would raise questions about the transparency of Hong Kong’s business environment.

Sanctioned Russian tycoon Mordashov's superyacht Nord found moored on Hong Kong waters on Oct. 5, 2022. (Big Mack/The Epoch Times)

The superyacht “Nord” believed to be owned by Mordashov entered the Hong Kong waters on Oct. 5 and was docked on the southwestern side of Stonecutter’s Island.

When the Hong Kong Marine Department responded to the media inquiry, they said that they did not comment on individual ships entering Hong Kong.

They also replied that certain countries may impose unilateral sanctions against certain entities, and the government of Hong Kong does not have the legal authority to take action on unilateral sanctions imposed by other jurisdictions.

A spokesman of the State Department is quoted as telling the Financial Times on Friday, Oct. 7, that Hong Kong’s reputation as a financial center depends on the “adherence to international laws and standards,” and warned that some people may use Hong Kong as a haven to avoid sanctions, which would raise questions about the transparency of Hong Kong’s business environment.

In the wake of Russia’s invasion of Ukraine, many countries such as the U.S., the UK, the European Union, and Japan imposed sanctions on Alexei Mordashov, who is regarded as an ally of Russian President Vladimir Putin.

“Lady M,” his other yacht, worth around US$68 million, was detained in Italy earlier.