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Ukraine Urges Hong Kong Not to Help Russia Bypass Sanctions

Dmytro Kuleba (Krisztian Bocsi/Photographer: Krisztian Bocsi/Bl)

(Bloomberg) -- Ukraine’s Foreign Minister Dmytro Kuleba asked Hong Kong’s leader John Lee to take measures to prevent Russia and its companies from using the city to circumvent sanctions, in a rare meeting between senior officials of the governments.

Kuleba made the remarks in his visit to Hong Kong on Thursday, according to a statement from the Ukrainian Foreign Ministry. He was also cited as saying the Asia financial center shouldn’t allow Russia to tarnish its reputation. 

Russia has sought to sidestep Western sanctions since its invasion of Ukraine triggered curbs from Ukrainian allies. The New York Times this week reported Russia obtained nearly $4 billion in restricted chips, many of which were shipped via shell companies in Hong Kong. A report published Monday by the Committee for Freedom in Hong Kong Foundation also found the city exported restricted goods to Russia, Iran and North Korea.

The Hong Kong government said it implements United Nation Security Council’s sanctions but didn’t directly answer a question on whether it helped Moscow evade trade curbs in response to a Bloomberg News inquiry. 

Russia is a permanent member of the UN Security Council and has the power to veto any of its initiatives. Hong Kong has previously criticized Washington for imposing unilateral sanctions on other countries.

Kuleba’s Hong Kong visit is part of a broader tour to China, his first since Russia invaded Ukraine in early 2022. He met on Wednesday with Chinese Foreign Minister Wang Yi, who said the time was “not yet ripe” for peace talks to end the war with Russia.

Beijing has put forward its own proposals for an initiative that would include Moscow at the table and moved to seek global backing for its plans.

Li Hui, the Chinese government’s special representative for Eurasian affairs, will travel to Brazil, South Africa and Indonesia from July 28 for further talks on Ukraine, Chinese Foreign Ministry spokeswoman Mao Ning said during a regular press briefing in Beijing on Friday. 

“He will carry out the fourth round of shuttle diplomacy, further exchange views with major members of the Global South and discuss with them the de-escalation of the situation and build up conditions to resume peace talks,” she said.

China has cultivated a “no-limits” partnership with Russia and has sought to portray itself as a neutral actor that can help end the conflict.

But Kyiv’s US and European allies have accused China of serving as an economic lifeline for the Kremlin by providing it with technologies and parts for weapons used in the war.

Beijing skipped a peace summit in Switzerland in June where Russia wasn’t invited. Chinese President Xi Jinping signaled continued support to his “dear friend” Vladimir Putin when they met early this month.

--With assistance from Lucille Liu.

(Updates with Li Hui’s planned trip in 8th paragraph.)

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