It was the mega yacht that got away. As Western sanctions hit Vladimir Putin’s allies earlier this year following the Russian leader’s invasion of Ukraine, their luxury yachts wereseized one after anotherin jurisdictions around the world.
But not theNord, a $500 million vessel tied to steel mogul Alexey Mordashov. This spring the ultra-luxurious yachtrisked a collisionby turning off its transponders and racing full steam ahead back to Vladivostok from the Indian Ocean, evading the grasp of Western authorities.
Now, infuriatingly to U.S. officials, it’s docked for all to see in Hong Kong—and authorities there are doing nothing about it.
A spokesman for Hong Kong’s marine departmenttold theFinancial Times:
“Certain countries may impose unilateral sanctions against certain places on the basis of their own considerations,” but the Hong Kong government “does not implement, nor do we have the legal authority to take action on, unilateral sanctions imposed by other jurisdictions.”
Hong Kong’s reputation
U.S. officials were not impressed. State Department officials told the U.K. paper that Hong Kong’s “reputation as a financial centre depєɴԀs on adherence to international laws and standards…The possible use of Hong Kong as a safe haven by individuals evading sanctions from multiple jurisdictions further calls into question the transparency of the business environment.”
Others agreed.
It would “raise risks considerably if Hong Kong became widely seen as a popular destination for the assets of sanctioned Russian corporations or individuals,” Ryan Mitchell, who teaches international law at Chinese University of Hong Kong, told the paper. He added, “Hong Kong-based corporations or individuals should be aware that they could later face secondary sanctions if they enter into business transactions or relationships with Russian sanction targets.”
Mordashov hasclose ties with Putinand made his billions as chairman of Severstal, a Russian steel-and-mining giant.
Not all of his yachts got away, however. In April, Italyseized hisLady Msuperyachtin the port of Imperia after the European Union blacklisted Mordashov. That yacht, however, is valued at a mere $27 million and measures just 215 feet.
TheNord, by contrast, extєɴԀs 465 feet and is valued at half a billion dollars. ASuperyacht Timesvideo about the vessel, made by a German shipyard, has garnered more than 570,000 views on YouTube.
