March 7 2022
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.
A law to allow wide-ranging sanctions, freeze assets, target oligarchs and even shut off airspace to Russian aircraft will be passed this week under urgency, Prime Minister Jacinda Ardern says.
It comes 13 days after Russia invaded Ukraine, with thousands of casualties and more than 1.5 million people forced to flee in what the United Nations has called "Europe's fastest-growing refugee crisis since World War II".
The sanctions announcement has been endorsed already by most parties and follows mounting calls from New Zealand's Ukrainian community to do more to stand with their home country.
Political experts say it's an important signal, even from a small country like New Zealand, to Russia that it does not support the "blatant" undermining of the rules-based international system.
There are also calls for New Zealand to ramp up its "soft power" efforts, including introducing a quota for refugees and the Prime Minister using her international political capital to find a diplomatic solution.
Prime Minister Jacinda Ardern announcing a bill to enact sanctions against Russia following its invasion of Ukraine. Photo / Mark Mitchell
New Zealand had been hampered in its ability to follow much of the international community and sanction Russia, lacking an autonomous regime.
Currently, sanctions are guided by United Nations resolutions, but Russia has a veto as a permanent member of the Security Council and blocked efforts to introduce sanctions.
Ardern said legislation like the Russia Sanctions Bill had never been introduced in New Zealand before.
"With Russia vetoing UN sanctions we must act ourselves to support Ukraine and our partners in opposition to this invasion," Ardern said.
"Ultimately if we had a Security Council that was more functional, we would not be in this situation in the first place, but the multilateral system has failed."
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," she said, noting New Zealand could be used to avoid other countries where sanctions already apply.
An estimated 1.5 million people have already fled the war zone. Photo / AP
The first tranche of sanctions will include 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 would take longer to activate and it would involve identifying any more people who should be targeted, Ardern said.
The sanctions could be imposed on people, services, companies, and assets related to those in Russia who were responsible for or associated with the invasion, or that are of economic or strategic relevance to Russia, including oligarchs.
They 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.
A public sanctions register will be set up.
Foreign Affairs Minister Nanaia Mahuta during the post-Cabinet press conference with Prime Minister Jacinda Ardern. Photo / Mark Mitchell
The bill also allows for sanctions to be imposed against other states complicit with Russia's illegal actions, such as Belarus.
The bill will go through all stages on Wednesday and Ardern said the first tranche of sanctions could be in place within a week.
National's foreign affairs spokesman Gerry Brownlee said he had been in discussion with Mahuta over the past few days and his party would back the bill, especially having long called for an autonomous sanctions regime.
Act Party foreign affairs spokeswoman Brooke van Velden said the party supported the bill, adding it should have occurred earlier.
Te Pāti Māori would support it while the Greens would decide at caucus tomorrow.
University of Otago Professor of International Relations Robert Patman said the sanctions bill was an important measure.
"This is the most blatant undermining of the rules-based system in a long time. As a small country, we need the rule of law to mean something on the international level.
Patman said New Zealand could lead a global declaration, either through the UN or something like the Christchurch Call.
While it might not convince the Russian government to change tack, it could speak to the Russian people, he said.
International analyst for the Democracy Project Geoffrey Miller said sanctions had been a "while coming" and New Zealand was playing catch-up, with Australia introducing them over a week ago and even sanctions-averse countries like Singapore, Japan and Switzerland taking a stance.
A man walks past a building damaged following a rocket attack, in Kyiv, Ukraine. Photo / AP
Miller said the Russia-specific bill, rather than a wider regime as proposed by the National Party, could have been partly to avoid setting a precedent and enabling allies to pressure New Zealand to introduce sanctions.
This would be particularly problematic if it involved a country where New Zealand did much trade, such as China, he said.
"Doing it specifically for Russia avoids that pressure," he said.
Miller also said New Zealand could do more in the diplomatic space, and introduce a quota for refugees, as had been done during the Syrian war in 2015.
Members of the Ukrainian community in New Zealand directly addressed the Prime Minister earlier on Monday, calling for sanctions, more humanitarian aid and Ukraine-specific refugee quota.
"Ukraine is fighting not just for its existence but the future of free and liberal society, democratic principles, peaceful world order," Andriy Legenkyy said.
"Ukraine is fighting for all of us. It fights for you."
The comments came as Ardern unveiled an artwork at Parliament donated by New Zealand's Ukrainian community as a display of "support and solidarity for Ukraine".
Foreign Minister Nanaia Mahuta said work continued on developing a wider autonomous sanctions regime, which would have humanitarian issues at its core and still favour the multilateral system.
