Hong Kong leader John Lee, on Tuesday, said there was “no legal basis” for the city to act on Western sanctions.

He said this when asked about a Russian yacht berthed in the financial centre that belonged to a sanctioned Russian oligarch.

The U.S. State Department criticised Hong Kong authorities for allowing a luxury yacht belonging to sanctioned Russian oligarch Alexey Mordashov to dock in Hong Kong waters last week.

The State Department said the use of Hong Kong by individuals evading sanctions from multiple jurisdictions could carry reputational risks and call into question the transparency of the financial hub’s business environment.

However, Mr Lee, who the U.S. had sanctioned for his role in clamping down on local freedoms, said Hong Kong would not act on unilateral sanctions imposed on Mr Mordashov by individual jurisdictions.

“We cannot do anything that has no legal basis,” Mr Lee told reporters.

Instead, Mr Lee said Hong Kong would only abide by United Nations sanctions.

“We will comply with UN sanctions. That is our system. That is our rule of law,” he said.

Mr Mordashov, a billionaire close to President Vladimir Putin, was among several Russian oligarchs sanctioned by the European Union and the U.S., but not the United Nations after Russia’s invasion of Ukraine for their links to Mr Putin.

While several Russian super yachts have been seized or denied entry in Europe and other jurisdictions, the 465-foot (141-metre) Nord could be seen docked prominently in waters west of Hong Kong’s iconic Victoria Harbour, valued at over $500 million.

Mr Lee, due to host an international investment summit in November with top global business leaders, also criticised sanctions imposed by the U.S. on Hong Kong officials for their role in curbing Hong Kong’s freedoms under China-imposed security law.

“It is a very barbaric act, and I’m not going to comment. Officials in Hong Kong do what is right to protect the interests of the country and the interests of Hong Kong. We’ll just laugh off the so-called sanctions,” he said. 

(Reuters/NAN)