US warns HK over giving haven to Russian super yacht

Agence France-Presse

and staff reporter

Hong Kong could damage its reputation as a financial hub if it gives haven to sanctions dodgers, the United States cautioned after the city said it would not act against a super yacht belonging to an ally of Russian president Vladimir Putin.

The Standard broke the news online last Thursday that The Nord - a US$500 million, 142-meter luxury vessel linked to Russian billionaire Alexei Mordashov - has been anchored in Hong Kong's Western Quarantine and Immigration Anchorage between Stonecutters Island and Tsing Yi since last Wednesday.

The 57-year-old Mordashov is among the oligarchs who are close to Putin and have been targeted by Western sanctions by the US and European Union following Russia's invasion of Ukraine.

Some have had their luxury yachts seized in places such as Spain and Fiji.

But Hong Kong's Marine Department said last Friday that while it implements United Nations sanctions, it cannot enforce those imposed unilaterally by countries or blocs.

The department also has refused to comment on individual cases. In response, a US State Department spokesman said: "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 adherence to international laws and standards," he said.

The department's website says all visiting vessels must fill in a three-page form to apply for permission to navigate in the waters of Hong Kong, including providing details of a berthing location.

It is understood the department approves applications as long as the vessels comply with all requirements, including having appointed a legal agent in the SAR and possessing safety and pollution prevention certificates. Sanctions on a vessel's owner are not among the considerations.

Permission to remain is usually granted on a monthly basis or less, but a visiting yacht cannot stay in Hong Kong waters for more than 182 consecutive days.

Almost twice the length of the SAR's sunken landmark Jumbo Floating Restaurant, measuring 76 meters, the 10,154-ton air-conditioned Nord has six stories served by an elevator.

Among its features are a gym, swimming pool, movie theater, spa room and sauna and a beauty salon.

It has also a swimming platform, barbecue and beach club facilities plus underwater lighting.

It has two helicopter landing pads - one on the bow and the other on the top deck with a hangar.

It is understood that Mordashov, the main shareholder and chairman of Russia's largest steel and mining company Severstal, is not on board the Nord.

As the second-wealthiest man in Russia, he has an estimated worth of more than US$29.1 billion (HK$226 billion).

The US and the EU have seized a dozen yachts owned by sanctioned Russian businessmen and worth more than US$2.25 billion.

Nord is among the "lucky ones" that fled and relocated to ports where sanctions do not apply.

In March, Nord remained under the ownership of Mordashov and was registered in the Cayman Islands, with a listed value there of US$300 million.

On March 12, the vessel left the Seychelles.

Having topped up with US$465,000-worth of fuel and sailing at top speed, Nord arrived at Vladivostok on April 11.

The vessel had allegedly turned off its mandatory location responders and sailed the 6,701 nautical miles in stealth mode.

The Nord took one more jaunt through the Sea of Japan and called at Busan in South Korea before heading back to Vladivostok, where it was recorded as being anchored on June 6, before making its way to Hong Kong.