National would support banning export of luxury goods to Russia

Wednesday, 6 April 2022

British prime minister Boris Johnson believes sanctions on Russia should remain in place until all of its troops are out of Ukraine.

Foreign Affairs Minister Nanaia Mahuta won’t say whether the Government will follow Australia and add an export ban on luxury goods to New Zealand’s growing list of sanctions on Russia.

The Government announced on Wednesday that it would slap a 35 per cent tariff on all Russian imports and ban the export of industrial products including ICT equipment and engines to Russia.

That was in response to Russian atrocities committed during its bloody and botched invasion of Ukraine.

New Zealand exported about $18 million-worth of electrical and non-electrical machinery and chemicals to Russia last year.

The Australian government announced on Tuesday that it would ban the export of luxury goods including wine and cosmetics to Russia.

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People walk past closed Adidas, Reebok and other shops in a mall in St. Petersburg, Russia, in late March.

National Party foreign affairs spokesman Gerry Brownlee said he would “certainly support” a similar move.

Philip Gregan, chief executive of NZ Winegrowers, said that it would support further sanctions if they were imposed by the Government.

New Zealand exports to Russia valued just over $240 million in the 2021 financial year, according to Stats NZ.

Of that, just over $113m was accounted for by dairy exports such as butter, which Fonterra voluntarily suspended soon after the invasion.

Exports of beverages, including spirits and wine, and vinegar valued just over $13m and seafood exports valued more than $24m.

However, it is not clear how much of that trade will already have been terminated or disrupted.

Stats NZ figures show New Zealand exported $32,386 worth of arms and ammunition to Russia last year and $768,446 of aircraft and spacecraft parts, which would be outlawed by current bans.

Brownlee criticised the Government on Tuesday for so far only putting one Russian bank, Promsvyazbank, on its sanction list.

Sarah Salmond, a partner at law firm MinterEllisonRuddWatts, said many expected the Government would soon target some or all of the 11 Russian banks and government entities additionally sanctioned by Australia in March.

But neither Mahuta nor the Ministry of Foreign Affairs and Trade would confirm that, with the ministry making only the general comment ahead of the new trade sanctions on Wednesday that it was working to adopt further measures as soon as possible.