The Government has announced new “significant” sanctions will be placed on Russia, including oligarchs, individuals and companies responsible for or associated with the invasion of Ukraine.

Now into its 12th day of attacks by Russia, more than 1.5 million people have been forced to flee Ukraine in what the United Nations has called “Europe’s fastest-growing refugee crisis since World War II”.

Cabinet met today to consider a bespoke Russian sanctions bill drafted specifically for the conflict in Ukraine.

The legislation has just been announced by Prime Minister Jacinda Ardern, who said it will be a first of its kind, targeted, autonomous sanctions regime on the Russian Government.

The Russia Sanctions Bill will pass under urgency this week, to provide further, extensive sanctions on Russia in response to the invasion of Ukraine, Ardern said.

“A Bill of this nature has never been brought before our Parliament, but with Russia vetoing UN sanctions we must act ourselves to support Ukraine and our partners in opposition to this invasion,” Ardern said.

“When we first responded to Russia’s invasion by issuing targeted travel bans, prohibiting exports to the military and suspending bilateral foreign ministry consultations we said no options were off the table.

“Today we take the next step in our response to increase sanctions, in line with the actions of our partners.

“This Bill is specific to the Russian invasion of Ukraine and will allow new sanctions to be applied as approved by the Foreign Minister.”

New Zealand was unequivocally opposed to Russia’s military assaults on Ukraine, the PM added.

Ardern said the amount of Russian investment in New Zealand was only about $40 million.

“But it’s not just about what’s already invested here, but what might be invested here.”

The first tranche of sanctions will be relatively straightforward, such as travel ban extensions and banking restrictions. The list of those banned from travelling here due to the Ukraine war has just been published and includes Russian President Vladamir Putin.

The second tranche would take longer to activate and it would involve identifying any more people who should be targeted, Ardern said.

The sanctions can be imposed on people, services, companies, and assets related to those in Russia who are responsible for or associated with the invasion, or that are of economic or strategic relevance to Russia, including oligarchs.

“A public sanctions register will be set up to list every individual, entity, asset, or service that is sanctioned,” Ardern said.

“The sanctions will enable the Government to freeze assets located in New Zealand. Those sanctioned will also be prevented from moving assets to New Zealand or using our financial system as a back door to get around sanctions increasingly imposed by other countries.

“Sanctions could also apply to trade, and financial institutions as well as stopping the likes of Russian superyachts, ships and aircraft from entering New Zealand waters or airspace.

“The Bill also allows for sanctions to be imposed against other states complicit with Russia’s illegal actions, such as Belarus.”

The PM said the new bill would create a framework which would adapt or expand sanctions where justified.

“We were one of the first countries to move on humanitarian assistance. Now we are changing our laws,” Ardern added.

Asked if any Russian oligarchs already lived in New Zealand, Ardern would not confirm or rule out if any such people might be targeted.

Foreign Minister Nanaia Mahuta said it was too soon to say if any Russians in New Zealand were “in our out” of the sanctions regime.

She said she still hoped Russia would de-escalate its actions in Ukraine.

On whether sanctions could target people or entities in India and China and others possibly supporting Russia in the war, Mahuta said the framework was broad.

Ardern voiced sadness for the Russian people and said sanctions should impact “decision-makers” in Russia.

Mahuta said Russia’s ambassador had already been called in but there were Kiwis in Russia needing consular support, so any moves on expelling the ambassador would have to be cautiously considered.

Mahuta said as a small country and supporter of the multilateral system to uphold peace and security, New Zealand has historically supported sanctions through the United Nations system.

“However, with Russia using its veto as a permanent member of the United Nations Security Council to prevent any action, even in the face of overwhelming opposition to Russia’s war, New Zealand has decided that a targeted sanctions bill is required to show our condemnation in the strongest possible terms.

Ardern said New Zealand had tried to work with the United Nations in recent years on relevant issues.

“Ultimately if we had a Security Council that was more functional, we would not be in this situation in the first place,” the PM added

Ardern said in the Ukraine crisis, the multilateral system had failed.

She also said sanctions against individuals could be nuanced.

“You could target their superyacht, for instance, and not target a business enterprise if you so chose”.

All parties in Parliament were involved in the development of this legislation, Mahuta said.

The Government continues to seek advice on a full autonomous sanctions regime, she said.

Mahutasaid a senior diplomat spoke to the Russians recently.

“Obviously they expressed their own view,” Mahuta said of the Russian response.

Ardern said diplomats were also encouraging counterparts in China to use Chinese influence to dissuade Russia from pursuing its aggression.

“We will continue to encourage China to take a stand on what’s happened in Ukraine.”

The PM said it was important to keep an open mind about China’s stance.

On whether New Zealand could be exposed to retaliation in an East-West split, Ardern said: “Those tensions aren’t new.”

The Government has also provided an initial $2m in humanitarian aid, prioritised visa applications and released some emergency oil stocks to help stabilise shaky oil markets.

Before today, New Zealand banned exports linked to the Russian military, imposed travel bans on certain individuals and provided humanitarian aid.

However, it came under global scrutiny for its inability to apply wider economic sanctions due to a lack of an autonomous sanctions regime.

Omicron's peak?

On when Omicron might peak, Ardern said hospitalisations were being tracked, but these numbers might lag about five days behind real peak cases.

Numbers were rising in northern regions, where Omicron was expected to peak first.
“We’re not there yet. We’re doing the policy work to be prepared, regardless.”

The PM said she’d had a mixture of feedback about supermarket product shortages.
Major supermarket chains had provided varying feedback.

At some supermarkets, workers did not have Covid-19 but their children did, so those workers had to take time off to care for kids.

Those employees also had to isolate, Ardern added.

She said some anecdotal feedback suggested absenteeism in Auckland was declining, but she didn’t want to jump the gun on whether that meant Omicron had peaked.

Ardern said the hospital network, especially in Auckland, was still bearing the brunt of the outbreak.

“Over the next week though it is going to be particularly tough going for our health sector.”

Ardern said she realised some people wanted pandemic response restrictions to go, but she asked for people to consider the plight of healthcare workers.

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