Russia war on Ukraine: NZ 'considering' sanctions on billionaire oligarch Alexsandr Abramov, Nanaia Mahuta says

Foreign Minister Nanaia Mahuta. Photo / Mark Mitchell

Retraction: Two articles that were published on our website on 17 and 20 May 2022, respectively, incorrectly stated that Alexsandr Abramov is the current "chairman of Evraz" and "the target of sanctions worldwide, including Australia and the United Kingdom".
Mr Abramov has resigned as a director of Evraz and is not the subject of sanctions anywhere in the world aside from Australia.
NZ Herald apologises for this error and has updated the articles accordingly.

The Government is considering sanctioning Russian billionaire oligarch Alexsandr Abramov - who has been linked to Putin - but has to work through how it will affect New Zealanders, Foreign Minister Nanaia Mahuta says.

Mr Abramov is co-founder and was former chairman of Russian London Stock Exchange listed international steel producer Evraz, which has assets in Russia and has an estimated net worth of more than $10 billion (according to Forbes).

Mr Abramov also has close ties to fellow oligarch Roman Abramovich, the recent owner of Chelsea Football Club whose assets have been frozen by the UK over "clear links to Putin", and is under sanctions here.

While Mr Abramov has been the target of sanctions in Australia, he has so far escaped personal attention here despite owning a luxury retreat in Helena Bay, worth an estimated $50m.

New Zealand has so far enacted a vast array of sanctions on Russia and countries aiding and abetting the war - including Belarus. Sanctions are also applied to over 700 individuals.

Asked today why New Zealand had not yet applied sanctions on Mr Abramov, Mahuta said New Zealand had to make "our own determinations", and assess the full impact of sanctions against him and "flow-through impacts on New Zealanders".

"That's why we're undertaking our own determination in our own way about where to next, with suitable individuals."

Stuff reported today those "unintended consequences" already included 420 New Zealanders unable to access their Russian pension payments.

In addition to the Northland mansion, Abramov owns a range of other properties here.

In 2021, Mr Abramov majority-funded the purchase of land in the suburb of Morningside in Auckland.

An apartment block is now under construction on the land, with 39 apartments being built.

This was through a New Zealand registered business, Targa Capital Ltd, which has New Zealand directors but "is ultimately controlled and receives the majority of its funding from Mr Alexander Abramov of Russia", according to the OIO decision.

The purchase price of this land was redacted due to commercial sensitivity. The construction of 39 apartments will add significant improvement value. It is unknown if Mr Abramov has a share in the building. If he does to the same degree as the land purchase, it would lift his New Zealand asset value to $55 or $60m.

Mahuta said she did not know how long their "determinations" could take.

They shared information with countries, including Australia and Britain, "regularly", she said.

"I'm not going to discuss the details of specific cases. But I can say there was a regular sharing of information between Australia and New Zealand in particular, around individual services entities and the way in which the sanctions regime has applied in their country and what we may consider."

The most recent sanctions targeted Russian President Vladimir Putin's "cadre of warmongers", including 170 senior politicians.