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Home / New Zealand

Government can't take action against Russian oligarch with Northland luxury lodge - yet

Mike Dinsdale
By Mike Dinsdale
Editor. Northland Age·Northern Advocate·
3 Mar, 2022 04:00 PM3 mins to read

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The Helena Bay luxury lodge owned by Russian billionaire Alexander Abramov.

The Helena Bay luxury lodge owned by Russian billionaire Alexander Abramov.

The Government cannot freeze assets of Russian oligarchs in New Zealand - such as steel magnate Alexander Abramov, owner of a luxury Northland property - but is looking at ways it can.

Evraz, the steelmaker, is controlled by billionaires Roman Abramovich, owner of Chelsea football club, and Abramov, who owns a $50m luxury Helena Bay Lodge on the east coast north of Whangārei.

Russia launched a full-scale invasion of Ukraine last Thursday that caused international outrage. Sanctions and bans on Russia were put in place as a result.

Countries around the world are also imposing sanctions on wealthy Russians - oligarchs, who made their money from buying state assets after the fall of the Soviet Union - after Russian President Vladimir Putin launched the invasion.

Russia has also lost the right to host sporting events, including the Champions League final, with sporting bodies across the globe moving to condemn the invasion.

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In the UK, limits have been placed on the finances of oligarchs there who have links to the Kremlin, with the hope they will put pressure on Putin to end the war.

UK Prime Minister Boris Johnson announced sanctions against some Russian oligarchs - including freezing assets and travel bans.

Abramov reportedly has links to the Kremlin and the Northern Advocate asked Foreign Minister Nanaia Mahuta questions about him.

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We asked: does the Minister intend to impose any sanctions on Abramov or any other Russian oligarchs with investments, properties or dealings in New Zealand?

If not why not when other countries are doing so?

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In a response a Ministry of Foreign Affairs and Trade spokesperson said: ''We are unable to provide details on individuals that may come under the sanctions of other countries.

''Aotearoa New Zealand does not have an autonomous sanctions regime, which means we do not have the same ability to freeze assets or restrict the provision of financial services to individuals who are subject to the sanctions of our partners.

''The Government is looking at a range of further measures we can apply, including whether restrictions can be applied to flows of investment into New Zealand by Russian individuals and firms implicated in Russia's invasion of Ukraine.''

Russian oligarch Alexander Abramov owns a $50 million luxury property at Northland's Helena Bay.
Russian oligarch Alexander Abramov owns a $50 million luxury property at Northland's Helena Bay.

Abramov's luxury lodge opened in 2016 after several years of construction and can host 10 guests at a time.

There have been claims of a bunker at Abramov's Helena Bay waterfront mansion, where people could live off-the-grid for weeks. These have been denied by people close to the lodge. In summer the cheapest room at the lodge is reportedly $2640 per night.

Abramov was born in 1959. He graduated from the Moscow Institute of Physics and Technology with a first-class honours degree in 1982, and he received a PhD in physics and mathematics. He worked at the Institute of High Temperatures of the USSR Academy of Sciences.

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In 1992, Abramov founded EvrazMetal, the predecessor of Evraz Group.

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