Hong Kong’s leader laughed at the US sanctions against him on Tuesday as he defended his government’s decision not to crack down on a superyacht reportedly owned by a Kremlin ally.

The Nord – a $500 million luxury ship linked to Russian billionaire Alexei Mordashov – arrived in the waters of Chinese territory last week.

Mordashov is one of the oligarchs close to Russian President Vladimir Putin who became the target of Western sanctions after Moscow’s invasion of Ukraine.

On Saturday, the United States warned Hong Kong against damaging its business hub’s reputation after the city said it would not enforce sanctions on the superyacht.

Hong Kong Chief Executive John Lee himself is one of several Chinese officials sanctioned by the United States in 2020 for their role in suppressing political liberties in the city.

Banks and other companies risk losing access to US-dominated global markets if they do business with sanctioned officials, with Lee’s predecessor revealing she had to take most of her salary in cash as a result.

When asked about the impact of U.S. sanctions on him on Tuesday, Lee told reporters, “It is a very barbaric act and I will not comment on the impact of such a barbaric act.”

“We will only laugh at the so-called sanctions.”

Some sanctioned oligarchs have had their luxury yachts confiscated in places like Spain and Fiji, but Hong Kong said on Friday that while it implements UN sanctions it cannot enforce those “unilaterally” imposed by countries or blocs.

Lee reiterated that argument Tuesday, describing US and European sanctions as “unlawful.”

“We will comply with any UN resolution on sanctions because Hong Kong has the legal basis to enforce them,” he said.

But he added: “We cannot and will not do anything that does not have a legal basis.”