Russia is capitalizing on Hong Kong’s financial system and lenient regulatory environment to evade Western sanctions and secure vital technologies for its military-industrial complex, according to a new report by the Ukrainian think tank StateWatch, through its investigative project Trap Aggressor.
The analysis, based on trade and customs data (2024–2025), company registries, and open sources, identifies 55 Hong Kong-based companies that exported dual-use goods — including microchips, network equipment, and precision technologies — worth over USD 55 million to Russia.
Among the key findings:
54.4% of the total export value came from Taiwanese electronics and advanced technologies from global manufacturers.
38% of the Hong Kong firms were founded after Russia’s full-scale invasion of Ukraine.
Only 30.9% of these companies are currently under international sanctions.
Over 20% of their founders are Russian or from other post-Soviet states.
The report warns that while Hong Kong continues to brand itself as a global financial hub, its adherence to UN-only sanctions and the deepening influence of Beijing have effectively turned the city into a “green corridor” for restricted goods entering Russia.
“Hong Kong’s unique status and open business environment are being weaponized to facilitate the flow of sensitive technologies to Moscow,” the authors noted, warning that this practice undermines the EU and U.S. sanctions regimes designed to weaken Russia’s war capabilities.
The findings amplify concerns that Russia has established alternative supply chains through jurisdictions such as China, Turkey, and Central Asia. Hong Kong’s role, the report suggests, is especially significant given its integration into the global financial system and proximity to Asian tech manufacturers.
The study, titled “Hong Kong and Sanctions Evasion: Russia’s Use of the Region’s Unique Status,” urges greater international scrutiny of re-exports and tighter monitoring of dual-use goods routed through Hong Kong.
As the war in Ukraine continues, analysts warn that without coordinated global oversight, Russia will keep exploiting regulatory loopholes to sustain its military production, effectively turning Hong Kong’s global connectivity into a tool for war.
Report by StateWatch’s Trap Aggressor project, shared with partner media outlets.