Not an oligarch: Russian millionaire Alexandre Germanovich on life in New Zealand

Former Russian aluminium businessman Alexandre Germanovich says he is not an oligarch. Photo / George Heard

Alexandre Germanovich might be a multi-millionaire but he has been wrongly cast as a “Russian oligarch” for more than a decade. Now mostly retired and living in New Zealand, with properties in Canterbury, Auckland and Whangaparāoa, the former Soviet aluminium engineer and businessman sat down with Herald senior journalist Kurt Bayer to set the record straight.

The father-son couple enjoying the harsh midday sun outside the central city cafe were so ordinary as not to warrant a second inspection. Bland-coloured polo shirts, sensible haircuts; no Savile Row suits or Rolex Submariners. They chatted quietly, amiably, chairs angled, hunched together.

I ordered an orange juice and sat inside. I noticed the pair through the glass and discounted them. But then, I wondered: What does a mega-rich Russian emigre who denies being an oligarch look like anyway? I remembered that Roman Abramovich, the billionaire ex-owner of Chelsea FC and possibly the most famous oligarch of them all, was known for his subdued taste in clothes if not superyachts.

A text buzzed. The son messaged to say they were seated outside. Sheepishly, I went back out and joined them.

Alexandre Germanovich, 68, smiles and says he is glad to finally speak to a journalist about the oligarch thing.

It all started with a Daily Mail article in 2014, headlined “The oligarchs and Putin cronies showering the Tories with Moscow’s millions”. It included him as one of a host of Russians making large donations to then UK Prime Minister David Cameron’s Conservative Party and that Germanovich himself had given £10,000 (about $20,000) to the Conservative Campaign Headquarters in 2007.

Since then, the oligarch tag has been perpetuated in several news stories. Germanovich doesn’t find it correct, or helpful for someone wanting to do business in New Zealand.

“I think [oligarch] is a misleading term,” he says.

“The general definition of the term is an individual who is very rich or extremely powerful, or someone with a great deal of political influence. I am neither very rich, extremely powerful or have had or have any political influence in Russia.”

Alexandre Germanovich with his son Semyon Germanovich. Photo / George Heard

Germanovich happily talks about his background when we catch up in Christchurch. He was born in the old copper mining town of Krasnoturinsk (where Rocky Balboa rocks up in Rocky IV). With both parents engineers, he studied as a metallurgy technician and attended the Moscow Steel and Alloys Institute, graduating in 1981 with a Bachelor of Sciences Degree.

For almost a decade, he worked as a production manager and engineer in a Siberian aluminium smelter, working his way up to operations executive.

In 1990, he took the position of director of commercial operations at the Nadvoitsy Aluminium Smelter, 200km north of Petrozavodsk.

Four years later, “my partners and I set up a commodities trading and servicing company” in London and Germanovich emigrated with his wife and children to the UK. He became a naturalised British citizen in 2000, and the following year stepped away from commodities trading and became a consultant “for a range of private clients in London”.

“Before, or after, my move [to Britain] I never worked for the Russian Government and was never associated with any Russian Government body,” he says, further distancing himself from the oligarch moniker.

Later, he would put it in more colourful terms for me: “I am not an oligarch. I am not very rich. I have no plane, my car is, maybe, six years old, and my sailing boat is only 48 feet [14.6m]!”

Germanovich first visited New Zealand in December 2009. After spending a fortnight holidaying in Australia, he had just a week to explore Aotearoa and quickly fell for the place. He knew he had to return and “understand more about the country, people and culture”. The following year he enjoyed a month of trekking and cycling across both islands, always on the lookout for “the best area to live”.

On another visit in 2011, on the recommendation of a friend, he visited Mt Potts Station, a sprawling 1200ha high-country farm in the Rangitata Valley, Mid Canterbury. Nestled into the Southern Alps, the picturesque area reminded Germanovich of the Urals mountain range that runs north-south through Russia where he grew up. Even some of the flora, with spruce and ash, was familiar, while it also provided a backdrop in the Hollywood blockbuster Lord of the Rings movie trilogy. He knew he had to buy it.

“This was more an emotional decision than a commercial one,” he says.

Mt Potts Station provided some of the dramatic backdrops for The Lord of the Rings movies. Photo / Supplied

But first, his $3.7 million purchase required sign-off from the Overseas Investment Office (OIO).

After going through the rigorous checking process, the OIO approved the sale, noting that Germanovich indicated plans to develop the station’s tourist accommodation and farming business. The OIO was satisfied in particular by the creation and retention of jobs, increased “export receipts”, added market competition and productivity, additional investment for development, and added that refusal could “adversely affect New Zealand’s image abroad”.

In early 2013, he splashed $1.95m on a historic yet dilapidated listed villa in Devonport and spent five years refurbishing it. Now returned to its late-Victorian splendour, the mansion is his main residence with his second wife Elena and young daughter.

Alexandre Germanovich's Devonport villa under wraps in 2015 during its renovation. Photo / Jason Oxenham

Now, the father-of-five splits his time between Auckland and Mt Potts Station. The keen sailor also has property in Whangaparāoa.

These days, Germanovich considers himself retired but he’s just entered into a 50/50 business partnership with son Semyon.

Together they have paid $2.3m for Ashburton’s old council building site and are currently working with a Christchurch-based architectural firm exploring a “financially-accessible” housing development.

“We want it to be something we can be proud of and something that adds value to the town,” says London-born Semyon, who now lives in Portugal.

The 27-year-old started out with Miami-based multinational financial tech company MoonPay, which tapped into the transfer of cryptocurrency, before breaking off to form his own blockchain business.

He now wants to diversify away from the volatile world of venture capital and crypto and invest in bricks and mortar in New Zealand.

Along with his four sisters, Semyon spent summers living and working on Mt Potts Station. He describes it as “breathtaking” and is keen to get back there on this trip.

His father also can’t wait. Although he occasionally gets back to London, and to visit his elderly mother in Russia, he now considers New Zealand home, becoming resident here in 2017.

Germanovich has been saddened by the war with Ukraine, a place where he has family and friends. After President Vladimir Putin’s army invaded in February 2022, Germanovich said his company posted a message on its website saying they did not support the war.

While the hills of Mt Potts Station may remind him of the Urals, it is a world away from the place he grew up.

“We are very happy here,” says Germanovich. “I would like the place to be kept for generations.”

Kurt Bayer is NZ Herald South Island Head of News based in Christchurch. He is a senior journalist who joined the Herald in 2011.