New Zealand Cracks Down on Russian Sanctions: What You Need to Know
In response to Russia’s aggression in Ukraine, New Zealand has introduced a range of sanctions aimed at restricting the flow of goods and services between New Zealand and Russia. The sanctions are designed to disrupt Russia’s economy and hold them accountable for their actions.
Who is Affected?
The sanctions apply to all New Zealand citizens, regardless of where they are in the world, as well as all individuals and businesses operating in New Zealand. This includes overseas companies with a connection to New Zealand, such as a branch or subsidiary.
What is Prohibited?
The sanctions prohibit seven types of activities:
- Travel Bans: Designated Russian individuals are prohibited from traveling to or transiting through New Zealand.
- Transport Bans: Military and government-owned or controlled aircraft and ships are banned from entering New Zealand airspace and ports.
- Asset Freeze: Individuals and entities designated by the sanctions are prevented from using assets in New Zealand, including bank accounts and personal property.
- Securities: New Zealanders and businesses are prohibited from dealing with securities of sanctioned individuals or entities.
- Services: Services are extended to, offered to, or received from sanctioned individuals or entities.
- Exports: Certain goods are prohibited from being exported to Russia, including luxury items and goods connected to strategic Russian industries.
- Imports: A 35% tariff is imposed on all imports of Russian origin, with some exceptions for low-value consignments.
Exceptions
There are some circumstances where dealing with sanctioned individuals or entities is allowed, such as:
- Owed payment due to a contract entered into before the individual or entity was sanctioned.
- Exporting personal effects, such as clothing and household goods.
- Exporting goods in good faith for humanitarian purposes.
Consequences of Non-Compliance
Failure to comply with the sanctions can result in civil and criminal liabilities. For individuals, this includes up to seven years’ imprisonment or a fine not exceeding $100,000. For businesses, this includes a fine not exceeding $1 million.
What You Need to Do
To comply with the sanctions, New Zealanders are encouraged to:
- Check the sanctions register regularly for updates.
- Report any issues, suspicious activity, or suspected breaches to the authorities.
- Seek independent legal advice if you have specific questions about your business or activities.
Remember, compliance is key. Failure to comply can result in severe consequences. Stay informed and stay compliant to avoid any issues with New Zealand’s sanctions regime.