U.S. suspects safe haven in Hong Kong

HONG KONG — The U.S. warned Hong Kong on Monday that its status as a financial center could be affected if it acts as a safe haven for sanctioned individuals, days after a luxury yacht connected to a sanctioned Russian tycoon docked in the city.

“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,” a State Department spokesperson said in a statement.

The State Department spokesperson also said the city’s reputation as a financial center “depends on its adherence to international laws and standards.”

The statement came days after the $500 million superyacht Nord, allegedly owned by Russian tycoon Alexey Mordashov, docked in Hong Kong’s harbor on Wednesday after a weeklong journey from the Russian city of Vladivostok.

Mordashov, who is thought to have ties to Russian President Vladimir Putin, was sanctioned by the U.S., U.K. and the European Union in February after Russia’s invasion of Ukraine.

He is one of Russia’s richest men with an estimated wealth of about $18 billion and is the main shareholder and chairman of Severstal, Russia’s largest steel and mining company. Mordashov has tried to challenge the sanctions against him in European courts.

Hong Kong’s marine authorities have said they do not implement “unilateral sanctions imposed by other jurisdictions,” though it implements and enforces sanctions imposed by the U.N. Security Council.

Meanwhile, U.S. and European authorities have seized over a dozen yachts belonging to sanctioned Russian tycoons to prevent them from sailing to other ports, such as those in Turkey, that are not affected by the sanctions.