New Zealand Tightens Squeeze on Russia with Further Sanctions

WELLINGTON – In a concerted effort to deepen the economic pressure on the Kremlin, the New Zealand government has announced a new round of sanctions against Russia, highlighted by a significant reduction in the price cap on Russian crude oil. The move, announced by Foreign Minister Winston Peters, lowers the cap from US60to∗∗US47.60** per barrel, a step aimed at directly curtailing the oil revenues funding Russia’s ongoing war in Ukraine.

The decision brings New Zealand into closer alignment with other G7-plus nations, including Canada, the European Union, and the United Kingdom, which have already implemented similar price cap adjustments. Peters described the action as a “calculated step” to limit the financial resources available to Russia’s military machine.

Extensive Sanctions Package

This is New Zealand’s 32nd round of sanctions since the Russia Sanctions Act was passed in March 2022. The new measures target a broad range of entities and individuals, reflecting a widening focus on those who enable Russia’s aggression. The sanctions include:

• 19 individuals and entities that are directly involved in supporting Russia’s war effort.
• 19 vessels that are part of Russia’s so-called “shadow fleet,” which is used to circumvent sanctions and transport crude oil.
• Russian actors involved in cyber-attacks against Ukraine, specifically identifying Russia’s military intelligence Unit 29155 of the General Staff Main Intelligence Directorate, which has deployed malware against Ukrainian government networks.
• Individuals and entities linked to chemical weapons, disinformation, and third-country facilitators in countries such as North Korea and Iran who are assisting Russia.

Since the war began, New Zealand has designated more than 1,900 individuals, entities, and shipping vessels for sanctions. In addition to these measures, New Zealand has also implemented a 35% tariff on all Russian imports, banned imports of Russian gold, and significantly expanded its export bans on strategic industrial products.

A Coordinated Global Effort

New Zealand’s actions are part of a coordinated international effort to respond to what it calls Russia’s “illegal war of aggression.” The government has been working closely with international partners to ensure its sanctions are effective and that Russia cannot use alternative routes or methods to finance its war. The new measures also reinforce a recent UK-initiated Call to Action on the “shadow fleet,” which promotes compliance with international maritime safety and insurance standards.

The sanctions underscore New Zealand’s firm commitment to supporting Ukraine’s sovereignty and territorial integrity. The government has pledged over $168 million in financial and in-kind support to Ukraine, including funds for military training, humanitarian assistance, and support for legal processes to hold Russia accountable.