New Zealand-registered shell companies are covertly playing a role in the funding of Russian separatists fighting in the Ukraine civil war.
One of the organisers in mercenary funding is a Moscow middleman, Konstantin Malofeyev, who was also involved in a major South Island dairy factory project.
“We have a guy who is fingered for sponsoring civil war and he has New Zealand links,” a diplomatic source told the Sunday Star-Times.
Police confirmed they were assisting “authorities in a number of countries to investigate the activities of these companies” but would not discuss details.
However, the diplomatic source said he was concerned that New Zealand officials seemed unaware of the strong link between Russian financiers and their use of shells, including those in New Zealand, for moving money to fund the Ukraine conflict.
New Zealand shell companies became world famous for all the wrong reasons because they are easily and cheaply created over the internet. In August the Government responded by changing the law to require resident directors.