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International relations

Hong Kong plays leading role in sanctions evasion: report

New analysis spotlights Chinese city as transshipment hub of goods to sanctioned nations

Hong Kong's regulatory environment makes it easy for foreign nationals to create shell companies to evade sanctions.   © Reuters

NEW YORK --The surge of Hong Kong shipments to Russia following Moscow's invasion of Ukraine in 2022 underscores the city's extensive role in helping U.S. adversaries avoid international sanctions, a new analysis published Monday by the Committee for Freedom in Hong Kong Foundation shows.

The 62-page report, "Beneath the Harbor: Hong Kong's Leading Role in Sanctions Evasion," outlines how Hong Kong companies have helped export goods that are under the U.S. and European Union's list of items -- known as Common High Priority Items -- highlighted as essential technology used by Russia's war machine.

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