Washington warns Hong Kong over luxury yacht linked to Putin ally

The yacht "The Nord" has a length of 142 meters.

The United States warned on Saturday that Hong Kong could damage its reputation as a financial center if it provided sanctuary to figures trying to evade sanctions, after the city announced it would not take any action against a luxury yacht reportedly owned by a Kremlin ally.

The 142-meter yacht "The Nord", worth $500 million, linked to Russian billionaire Alexei Mordashov, arrived in the waters of the Chinese region this week.

Mordashov is among the oligarchs close to Russian President Vladimir Putin who were targeted by Western sanctions after the Ukraine war.

Some luxury yachts have been confiscated in countries such as Spain and Fiji.

Hong Kong announced Friday that it is applying the sanctions imposed by the United Nations, but it cannot apply those imposed "unilaterally" by countries or blocs.

In response, a US State Department spokesman told AFP that "the potential use of Hong Kong as a safe haven by individuals evading sanctions imposed by judicial authorities raises further doubts about the transparency of the business environment" in the city.

"Hong Kong's reputation as a financial center depends on its adherence to international laws and standards," he added.

Yachts owned by people close to Putin have become targets for Ukraine's western allies who target the assets of sanctioned figures in a bid to punish Moscow in response to the Ukraine war.

The Nord, which includes two helipads, a cinema and more than a dozen luxury rooms, switched its flag from the Cayman Islands to the Russian flag in June.

He was anchored in the port of Vladivostok in eastern Russia before heading later to Hong Kong.

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