NZ may sanction more Russian banks, luxury goods export ban also possible

Friday, 8 April 2022

Russian banks have been a target for protesters and sanctions in many parts of the world, following Russia’s war on Ukraine.

Government officials are working on plans to target more Russian financial institutions with sanctions, Foreign Minister Nanaia Mahuta has confirmed.

Mahuta said announcements of further sanctions would be made once due diligence had been done.

Ukrainian president Volodymyr Zelenskyy has called for all Russian banks to be sanctioned, but to date New Zealand has only introduced sanctions against one Russian bank, Promsvyazbank, prompting a call for further action from National.

Trade Minister Damien O’Connor indicated a ban on the export of luxury goods to Russia, similar to a ban announced by Australia on Monday, was also possible.

* 'No more vodka' as Government hikes import tariffs on Russia

* A look at the West's escalating sanctions on Russia

Trade Minister Damien O’Connor says the Government is considering additional trade sanctions, which could include a ban on the export of luxury goods, such as wine, to Russia.

* National would support banning export of luxury goods to Russia

* New Zealand to release further oil reserves in response to Russian invasion of Ukraine

Asked whether a such ban was being considered, O’Connor said the Cabinet was “constantly reviewing the situation and are considering all options”.

“The Government absolutely condemns the outrageous and beyond reprehensible actions that are occurring in Ukraine at the hands of Russia and will continue to send a clear message that New Zealand will not fund or support the Russian war machine,” he said.

The Australian government’s ban prohibits the export of goods including wine and high-value cosmetics to Russia.

New Zealand has previously introduced bans on some other categories of exports, including ICT equipment and industrial machinery, and earlier this week slapped a 35 per cent tariff on all Russian imports.

Russia on Friday responded by banning 130 New Zealand politicians and officials, including Prime Minister Jacinda Ardern, from entering Russia.

Energy Minister Megan Woods separately announced the Government had agreed to release about 184,000 barrels of crude oil reserves held in Spain and about 299,000 barrels of diesel reserves held in the UK.

That is in addition to the release of 369,000 barrels of crude oil last month.

In both cases the release of reserves is New Zealand’s contribution to a release of reserves agreed by the 31 members of the International Energy Agency, which is freeing up oil in a bid to constrain fuel price rises and ease supply shortages in the wake of the attack on Ukraine.

The agency has so far agreed to release a total of 183 million barrels of oil and fuel.

Woods said New Zealand had agreed to release slightly more than its share of reserves to play its part in helping stabilise energy markets.