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Imports from Russia slowed to a trickle as a result of sanctions placed on the country because of the war in Ukraine, both from New Zealand and other countries.
The value of imported Russian goods fell 80 per cent in the six months to September 2022, compared with the sameperiod the previous year. Vodka and other beverage imports plunged by 93 per cent - just $63,000 of Russian beverages was imported in those six months.
One concern is the huge decline in imports of Russian fertiliser, which fell 66 per cent. Russia is one of the world’s major fertiliser exporters and the war has meant fertiliser exports have been difficult, leading to concerns for global food supply.
New Zealand exports to Russia declined by 86 per cent over those six months to just $15 million, down from $109m.
The review found that the sanctions were effective in limiting trade and punishing individuals, although it added that there was little trade with Russia before the conflict and there were few Russians in New Zealand who were connected with the Vladimir Putin regime.
The officials said just one Russian aircraft had visited New Zealand in the last 36 months, and just three Russian-registered superyachts had visited New Zealand in the previous 10 years - although two of these were owned by people currently subject to sanctions.
It also noted that trade with Russia would probably have declined even without New Zealand’s sanctions, as the effects of other countries’ sanctions would have had a flow-on impact.
The report was supportive of the sanctions, saying that without them, there was a risk that trade with Russia could have continued in “ways that would be inconsistent with the views expressed by Government and damaging to our reputation”.
The report also warned New Zealand could have become a “safe haven” for people “sanctioned by other countries to continue to do business or become a supplier of strategic goods Russia could use to continue its illegal war”.
National’s foreign affairs spokesman Gerry Brownlee said the report showed the merit of having a sanctions regime that New Zealand can deploy without going through the United Nations (UN).
Currently, New Zealand can only sanction countries by going through a United Nations process, guaranteeing some international agreement about the sanctions.
National's foreign affairs spokesman Gerry Brownlee wants a broader sanctions regime. Photo / Mark Mitchell
However, this method has come under pressure recently, as Russia is able to use its veto on the United Nations Security Council to block any sanctions it disagrees with - like sanctions on itself or its allies.
The Russia Sanctions Act was a way around this and allows New Zealand to sanction Russia and others involved in the war, like Belarusians and Iranians.
Brownlee wants the Government to go further and implement an autonomous sanctions regime, allowing New Zealand to sanction any country without going through the flawed UN process. As foreign minister under the previous National-led administration, he had hoped to pass such legislation, but the Government changed before legislation was passed.
Brownlee hailed the fact that the sanctions on Russia have prevented New Zealand from becoming a safe haven for Russian assets, which would have turned the country into an international pariah.
“That is the point of having an autonomous sanctions regime,” Brownlee said.
“We should always have legislation like that in the toolkit,” he said. “It is time well and truly for New Zealand to have broader legislation.”
When passing the Russian sanctions legislation in March, Foreign Minister Nanaia Mahuta had said she would be “stewarding through” broader autonomous sanctions rules in the future.
However, at the end of 2022, she appeared to be backing away from the legislation.
”I won’t say an autonomous sanctions bill is under development, but further consideration of the context for an autonomous sanctions bill and how that might reflect New Zealand values and interests is under consideration,” Mahuta said.
“I’ve said that I would be looking at the context of an autonomous sanctions bill within our human rights values and aspirations.
“The chief executive of MFAT has an expert group that he has established and we will take advice from them for consideration,” she said.
Mahuta indicated that she expects a briefing from those experts in the first quarter of this year.
