As a Ukraine diplomat called on New Zealand and the world to keep the pressure on Russia over its invasion of Ukraine, the first targets of our new sanctions regime have been revealed
The Government has imposed a first set of sanctions against those connected to Russia’s invasion of Ukraine – but a prominent oligarch in the New Zealand spotlight remains off the list.
Officials have been working on an initial blacklist after Parliament last week voted unanimously to create a unilateral sanctions regime to punish those involved in waging war.
New Zealand had previously been unable to act due to the country’s existing sanctions legislation requiring the approval of the United Nations Security Council, over which Russia holds veto powers.
Regulations which came into force overnight have now taken aim at Russian leader Vladimir Putin and 12 other members of his Security Council, including foreign minister Sergey Lavrov, former president Dmitry Medvedev and army general Sergei Shoigu.
In addition, 19 organisations have been targeted, including the Cossack National Guard, state-backed Russian bank PSB and semiconductor manufacturer JSC Integral.
Any ships or aircraft owned by, or connected to, those on the sanctions list are now prohibited from entering New Zealand territory, while New Zealanders cannot deal with any assets inside or outside the country tied to those on the list.
Separately, the list of those banned from entering New Zealand has been increased significantly and now includes members of Russia’s State Duma (lower house) who voted in favour of recognising the independence of Ukraine territories Donetsk and Luhansk in February.
However, Russian businessman Alexander Abramov has not been included on either the travel ban or sanctions list, despite calls from Greenpeace and others for action to be taken against him.
Abramov, a significant shareholder in Russian steel giant Evraz and until recently its chairman, has an estimated net worth of $8.3 billion according to Forbes, owns a $50 million luxury lodge in Northland’s Helena Bay and has been involved in Kiwibuild affordable housing projects.
Greenpeace NZ led a protest flotilla to his Helena Bay lodge, saying he had “clear connections to [Vladimir] Putin’s sphere of influence” and the Government needed to act against him.
Announcing sanctions against Russian billionaire Roman Abramovich, the United Kingdom and European Union each cited his role as a major shareholder in Evraz (Abramovich holds a 28.6 percent stake, compared to Abramov’s 19.3 percent).
“Evraz PLC is or has been involved in providing financial services, or making available funds, economic resources, goods or technology that could contribute to destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine – which includes potentially supplying steel to the Russian military which may have been used in the production of tanks,” the UK said, noting his close ties with Abramov meant Abramovich exercised effective control of the company.
The EU described Abramovich as “a major shareholder of the steel group Evraz, which is one of Russia’s largest taxpayers”.
“He has therefore been benefiting from Russian decision-makers responsible for the annexation of Crimea or the destabilisation of Ukraine,” it concluded.
Abramov and nine other non-executive directors resigned from the board of Evraz following the announcement of sanctions against Abramovich, while the company's shares were this week suspended on the London Stock Exchange having fallen by more than half since the Russian invasion of Ukraine.
However, neither Abramov nor Evraz have yet been sanctioned by any country over the Ukraine invasion.
Asked by Newsroom why the EU had not taken any action against Abramov, the grouping’s ambassador to New Zealand Nina Obermaier said its sanctions needed to be transparent, evidence-based and stand up to potential litigation from those named.
“We're not looking at rich Russians per se – we're looking at persons that have a significant economic role in supporting President Putin's regime and who benefit financially in the system, or people that have affiliated or are owners of military and defence companies which are logistically and materially supporting the invasion.”
“We fight like a shark, we don’t give in like an octopus. We suffer losses but in the end, we will prevail.” – Kateryna Zelenko, Ukraine diplomat
Speaking at an online media briefing, Obermaier said the EU had been in constant dialogue with New Zealand both in the lead-up to and aftermath of Russia’s invasion, and had been sharing information about its own sanctions process including the full legal texts of its decisions.
The EU and others were “trying to deprive the Russian war machine of its fuel [and] international assets”and the full effect of current sanctions had not yet been seen, although the ruble had already plummeted and companies were now choosing to voluntarily withdraw from the country.
Earlier in the day, a Ukrainian diplomat called on New Zealand and other countries to continue to place pressure on the Russian regime.
Ukraine ambassador Kateryna Zelenko, based in Singapore but with responsibility for New Zealand, told Parliament’s foreign affairs, defence and trade committee the country was grateful for “the immense support provided…in these dire times”.
"We live in a strange world where the countries which are close neighbours with a shared history and culture appear to be a ruthless enemy, and the nations which are so far away with different historical backgrounds appear to be a real friend."
Zelenko said New Zealand had been among the first countries to condemn Russia’s invasion, while its export controls, travel bans and adoption of sanctions legislation helped as “the only way to stop aggression is to continue pressure”.
The utmost focus remained on protecting human lives, and Zelenko said Ukraine would appreciate continued humanitarian assistance from New Zealand.
Borrowing from te reo Māori, she said: “He waka eke noa” (We are all in this canoe together) and made use of a whakataukī.
“We fight like a shark, we don’t give in like an octopus. We suffer losses but in the end, we will prevail.”
While New Zealand's initial sanctions list is relatively modest compared with the actions taken by other partners, the Government had already signalled the first tranche would be just the starting point as further work was done.
