Hong Kong 'laughs off' US request to seize Russian yacht
October 11, 2022
The superyacht Nord docked in Hong Kong last week. It allegedly belongs to Alexey Mordashov, a Russian steel tycoon sanctioned by US.
Nord features 20 cabins, two helipads and a swimming poolImage: Tyrone Siu/REUTERS
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Hong Kong's leader John Lee said he "laughs off" United States sanctions amid calls to seize a superyacht linked to Russian billionaire Alexey Mordashov.
The superyacht Nord, allegedly owned by Mordashov, arrived in the Asian port last Wednesday.
On Tuesday, Lee said Hong Kong is compliant with United Nations sanctions.
But targeted measures from the likes of the US, the United Kingdom or the European Union — which each sanctioned Mordashov after Russia's invasion of Ukraine in February — don't apply in Hong Kong, he said.
"We cannot do anything that has no legal basis," Lee told reporters. "We will comply with United Nations sanctions, that is our system, that is our rule of law."
Hong Kong's reputation in jeopardy, US says
Lee's comments come a day after the US State Department said that "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."
"Hong Kong's reputation as a financial center depends on its adherence to international laws and standards," the State Department added.
Lee himself is one of several Chinese officials who were sanctioned by the US in 2020 for their roles in cracking down on political freedoms in the city.
When asked by journalists on Tuesday whether the sanctions mean he has to be paid in cash, as his predecessor Carrie Lam was, Lee dodged the question by once again calling the move "barbaric."
"We will just laugh off the so-called sanctions," the Hong Kong chief executive added.
Oligarchs' yachts: Seized or under speculation — in pictures
Superyachts have made headlines in recent weeks as European authorities target luxury vessels linked to Russian oligarchs. Some of Russia's richest men are still trying to protect their ships.
Image: Sabri Kesen/AA/picture alliance
Sailing Yacht A
This 143-meter (470-foot) Sailing Yacht A, also referred to as "SY A," is valued at around €530 million ($578 million). Italian authorities seized it after identifying the owner as Russian billionaire Andrey Igorevich Melnichenko. He owns major fertilizer producer EuroChem Group and coal company SUEK. Both companies announced recently that Melnichenko had resigned as a board member.
Image: Sabri Kesen/AA/picture alliance
The Lena
Italian authorities also seized this 52-meter (170.6 foot) boat with an estimated value of €50 million as it was moored in San Remo, northwestern Italy. It is owned by Gennady Timchenko, chairman of the Russian national hockey league with stakes in oil and gas companies. The 69-year-old oligarch has been sanctioned by the US and the EU.
Image: Fabrizio Tenerelli/ANSA/picture alliance
The Dilbar in Hamburg
The Dilbar has two helipads and a 25-meter swimming pool. Speculation has surrounded this 150-meter ship. Some German media reported that it was seized by authorities in Hamburg, where it is docked for repairs. Some officials declined to comment and others denied the reports, saying that they had been unable to confirm its ownership.
Image: picture alliance
Ownership transfer
The Dilbar superyacht ship is reportedly associated with oligarch Alisher Usmanov, who is on the EU sanctions lists. A spokesman for Usmanov told Der Spiegel that the yacht's ownership had been transferred "a long time ago" to a foundation for Usmanov's relatives.
Image: Imago/M. Segerer
Fleeing to Turkey
Eclipse is the second superyacht linked to Russian billionaire Roman Abramovich, owner of the English football club Chelsea, to have docked in a Turkish resort in apparent avoidance of EU waters. The 162.5-meter superyacht — one of the world's biggest — is reported to have two helipads, nine decks, a swimming pool and built-in missile defenses.
Image: Christian Charisius/dpa/picture alliance
The Scheherazade: Is this Putin's superyacht?
The 140-meter-long ship, worth around €700 million, is currently the most infamous yacht in Italy. A New York Times report said US intelligence agencies have found initial indications that it is linked to Russian President Vladimir Putin. But other reports said Putin was not the documented owner. Italy is investigating its ownership.
It has been reportedly parked for maintenance in Tuscany.
Image: Osman Uras/AA/picture alliance
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Why is this superyacht controversial?
Nord is a $500 million (€516 million) superyacht that's allegedly owned by Mordashov.
The 141.6 meter-long (464.6 feet) ship has 20 cabins and features a swimming pool and two helipads.
One of Russia's richest men, Mordashov's wealth is estimated at $18 billion. He is the main shareholder and chairperson of Severstal, Russia's largest steel and mining company, and is believed to have close ties to President Vladimir Putin.
Earlier in the year, US and European authorities seized more than a dozen superyachts belonging to sanctioned Russian billionaires. However, some of these individuals have managed to evade sanctions by docking their ships in places like Turkey or the United Arab Emirates.
