Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Friday, Mar 29, 2024

Russian billionaire’s yacht will not be sanctioned in Hong Kong, government says

Russian billionaire’s yacht will not be sanctioned in Hong Kong, government says

Officials say the city has no obligation to enforce US, EU and UK sanctions against Russian billionaire after superyacht linked to him drops anchor off Hong Kong.

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 HK$3.9 billion luxury yacht Nord.


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.

Media reports suggested that after Russia invaded Ukraine in February, Nord, which had been registered in the Cayman Islands, a British territory in the Caribbean, sailed to the Seychelles in the Indian Ocean to avoid being seized by Western powers.

Yachts that visit Hong Kong are required to apply for permission to navigate its waters, including the specification of a berthing location.

The Marine Department declined to say whether it had asked for advice from Beijing before it allowed the Nord to anchor. The department added it did not comment on individual cases of vessel entry.

“The government of the Hong Kong Special Administrative Region … has all along been implementing and enforcing fully the sanctions imposed by the United Nations Security Council,” the spokeswoman said.

She added that the city government did not implement, or have the legal authority to enforce, “unilateral sanctions imposed by other jurisdictions”.


Mitchell said the Hong Kong government’s decision not to join the sanctions regime imposed on Russia by the US, EU and UK, as well as by some other countries, was in line with its normal position, and shared by some other states.

“For example, India, China, Brazil, and many ‘non-aligned’ states do not view the Western sanctions regime as the best approach to resolving the Russia-Ukraine conflict,” he said. “In that sense, Hong Kong is not atypical.”

But Mitchell said possible secondary sanctions targeting associated Hong Kong-based entities would be “the main risk” from non-participation in enforcement action.

But he explained that if the Western side escalated the situation there could be major economic repercussions for the city.

“It would be prudent to avoid taking unnecessary actions, such as actively promoting Hong Kong as a destination for such traffic,” he said.

Professor Michael Tsimplis, from City University’s law school, said that even if no official action was taken, the international operations of financial or other institutions which directly or indirectly engaged with the owner of the yacht could be affected.

“Such institutions will be exposed … to the possibility of committing a breach of the sanctions, which can have very serious consequences for their usually global operations. This would include banks, insurers and so on,” he said.

Tsimplis said he believed the Marine Department would have checked the validity of the documents of the yacht, as classification and mandatory insurance certificates could have lapsed or been revoked if they were provided by insurers and classification organisers located in countries that had imposed sanctions.

Assistant professor Stephenson Chow Pok-yin, also from the CityU law school, added it was “unlikely” that Hong Kong would be sanctioned over the Nord.

“Whether it will cause issues for Hong Kong depends on what they intend to do here in Hong Kong. If it is only to refuel and restock supplies, then it’s unlikely,” Chow said.

The luxury yacht believed to be owned by Alexei Mordashov.


“To the extent that this may attract criticisms from other countries, I don’t think states will expect Hong Kong to refuse entry given the current political climate. Nor is this likely to be on the top of Western leaders’ minds – at least, not for now.”

It was reported that the Nord’s Hong Kong agent is Lodestone Yachts, based in Wong Chuk Hang.

The Post contacted Lodestone to confirm the firm was the Nord’s agent. A staff member said “I’m not so sure” and hung up.

Nord is equipped with two helicopter landing pads, 20 luxury cabins, a cinema, a swimming pool and a sauna room.

Records of its arrival could not be found on the Marine Department’s website.

Washington sanctioned 11 Beijing and Hong Kong officials, including former security minister and current city leader John Lee Ka-chiu, in August 2020 over the implementation of the Beijing-imposed national security law.

Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×