New Zealand’s Russia sanctions amendments come into effect
On 19 April, the New Zealand government passed amendments to its Russia Sanctions Act (which was passed by the country’s parliament on 22 March 2022).
According to the Ministry of Foreign Affairs and Trade (Aotearoa), key elements of the changes are that they: ‘
- introduce trade measures,
- designate further financial entities;
- increase the threshold under Regulation 5(3) (ownership and control) from 25% to 50%’
- carve off securities from Regulation 10 (prohibition on dealing with assets of, or for benefit of, sanctioned persons) and introduces a new prohibition, Regulation 10A (prohibition on dealing with securities of sanction persons);
- and broaden the definition of ‘High-Value Dealers’ for the purposes of the Russia Sanctions Act and the Regulations.’
In addition, from 25 April, New Zealand will apply a 35% tariff on all imports from Russia and ‘prohibit the exports to Russia and Belarus of certain products that are closely connected to strategic Russian industries. Regulations are currently being prepared to enable these measures to enter into force on 25 April.’
The ministry said that ‘in the absence of an effective response from the United Nations Security Council (as a result of Russia…using its veto) and in light of Russia’s continued actions in Ukraine, the Act provides Aotearoa New Zealand with the legislative tools to join the international community and respond.’
It said that ‘All New Zealanders, both inside and outside of New Zealand, are required to comply with the sanctions set out in the Regulations. Individuals in New Zealand (and those ordinarily resident in New Zealand) and entities operating in New Zealand are also required to comply.’
