Russian spy haven Nornickel remains in Australia and spending big via West Perth subsidiary

A Russian miner that harboured convicted spies in Western Australia controls a West Perth shell company inexplicably spending hundreds of thousands of dollars each year. The revelation comes less than three weeks after Australia’s chief spy warned that Russia remains a “persistent and aggressive espionage threat”. Nornickel, formerly Norilsk Nickel, is headquartered in Moscow and run by politician turned oligarch Vladimir Potanain. The billionaire is sanctioned by the Australian Government and is a close ally of Russia’s leader Vladimir Putin. Mr Potanain’s Nornickel splurged on a $7 billion acquisition of LionOre to begin building a WA nickel empire at the height of the mining boom in 2007. The nickel price soon crashed and following more than a decade of bleeding cash the Russian giant cut off its withered WA arm in June 2020 — declaring a “strategic exit from Australian operations” with the sale of its remaining assets to BHP’s Nickel West. Nornickel’s numerous Australian subsidiaries were promptly wound up, except for one. This remaining subsidiary has a small letterbox in the foyer of a West Perth office building, with no other known property presence. Nornickel used to have floor space in the same building as the letterbox but the company abandoned that space at least two years ago, according to other tenants of the building who spoke to The West Australian. The West Perth-registered entity’s financial accounts only raise more questions. More than $675,000 was mysteriously spent in 2024, despite there being no debts to pay or no assets to maintain during the year, with just over $467,000 left by December 31. About $800,500 was also mysteriously spent in 2023. East Perth-based Australian Audit received $5000 both years to audit the accounts. Nornickel’s West Perth subsidiary was “primarily involved in holding assets under care and maintenance,” according to commentary in its financial accounts. But WA’s Department of Mines, Petroleum and Exploration confirmed this subsidiary had no assets on care and maintenance or any mining tenements under its control. The West Perth shell company paid $440,205 to “key management personnel” during each of 2023 and 2024. Its immediate parent company was originally based in the Netherlands until two years ago when it became domiciled on the Greek side of Cyprus — an ally of Russia. Banks on this Mediterranean island nation have been used to manoeuvre around sanctions imposed on Russia by the Western World since the Russian invasion of Ukraine began in 2022. Nornickel and Australian Audit declined to comment. A spokesperson for The Australian Security Intelligence Organisation declined to comment, but they pointed to a recent speech given by ASIO director general Mike Burgess. Mr Burgess called out Russia in this speech on July 31. “Russia remains a persistent and aggressive espionage threat. Last year, two Russian-born Australian citizens were arrested and charged with an espionage-related offence,” he said. “Separately, I can confirm in 2022 a number of undeclared Russian intelligence officers were removed from this country. “The decision followed a lengthy ASIO investigation that found the Russians recruiting proxies and agents to obtain sensitive information, and employing sophisticated tradecraft to disguise their activities.” He said foreign intelligence agencies were aggressively targeting Australia’s “green technology, critical minerals and rare earths extraction and processing”. Nornickel was embroiled in a local spying scandal when The West Australian in 2013 revealed a convicted Russian spy was responsible for shepherding workers into a Goldfields nickel mine. Elena Vavilova was employed as a senior human resources manager at Nornickel, tasked with organising visas and travel for Russian nationals working at the company’s WA operations. Just three years prior to this revelation, Ms Vavilova and her husband were involved in one of the biggest spying scandals in decades. They were among 10 agents of the Russian foreign intelligence service arrested in the United States by the FBI in a swoop on deep-cover operatives after an investigation spanning a decade. Ms Vavilova was quickly freed via a prisoner swap and personally awarded a state honour by Mr Putin on her return to Russia. Other ex-Nornickel employees in Australia, like Roman Panov — a director of Nornickel Australia in the 2010s — served as an officer in the former Soviet intelligence agency.