Hong Kong’s leader, John Lee, said Tuesday that he will solely enforce UN sanctions after the United States warned that the territory’s role as a financial centre might be jeopardised if it functions as a safe haven for sanctioned individuals. Lee’s announcement came just days after a luxurious yacht linked to Russian oligarch Alexey Mordashov moored in the port. Mordashov, who is thought to have close relations to Russian President Vladimir Putin, was sanctioned by the United States, the United Kingdom, and the European Union in February following Russia’s invasion of Ukraine. The Hong Kong government has stated that it does not enforce unilateral measures imposed by other states.
“We cannot accomplish anything without a legal foundation,” Lee told reporters. “We will comply with UN sanctions; that is our system, that is our rule of law,” he stated. In a statement issued Monday, a US State Department official stated, “the probable use of Hong Kong as a safe haven by persons dodging sanctions from numerous jurisdictions further calls into question the transparency of the economic climate.”
The city’s status as a financial centre, according to the State Department spokesperson, “depends on its adherence to international norms and regulations.” Mordashov’s reputed $500 million superyacht Nord arrived in Hong Kong’s harbour on Wednesday after a weeklong cruise from the Russian city of Vladivostok. Mordashov is one of Russia’s wealthiest persons, with an estimated fortune of $18 billion. He is also the majority shareholder and chairman of Severstal, Russia’s largest steel and mining corporation. Mordashov has attempted to get the sanctions imposed on him overturned in European courts.
Over a dozen boats belonging to sanctioned Russian tycoons have been confiscated by US and European officials in order to prevent them from travelling to other ports not covered by the restrictions. Russian oligarchs have begun to dock their boats in countries such as Turkey, which has maintained diplomatic relations with Russia since the war began. The Nord is 141.6 metres (464.6 feet) long and features two helipads, a swimming pool, and 20 cabins. Currently, the yacht is sailing under Russian flag.
In 1997, Britain handed over administration of its colony Hong Kong to China, promising to safeguard the region’s semi-autonomous status as a separate economic and customs territory. The semi-autonomous city’s reputation as an international commercial and financial centre has deteriorated in recent years, following Beijing’s imposition of a strict national security law aimed largely at quelling unrest following months of anti-government rallies in 2019. Critics argue that the security law, which allows suspects to be sent to mainland China for prosecution in its opaque legal system in some situations, could jeopardise Hong Kong’s rule of law. Beijing also makes foreign policy decisions and has refused to join sanctions against Russia for its attack on Ukraine.
(source : AP)
