Energy and Resources Minister Megan Woods says Russia’s invasion of the Ukraine and any resulting curtailment of Russian oil supply, won’t affect New Zealand’s fuel supply.
“New Zealand does not purchase any oil or oil products from Russia so would not be directly affected if Russian oil supply is curtailed,” Woods said.
She noted the International Energy Agency (IEA), which New Zealand is a member of, has assessed that world oil production capacity is “more than sufficient" to meet demand due to any disruption that may arise from the situation in the Ukraine.
“We are actively consulting with IEA partner countries and would expect to take part in any collective action called by the IEA to release strategic oil stocks in order to reduce any disruption in the market and reduce price impacts,” Woods said.
“Strategic reserves of oil are held for exactly this reason; to ensure there is as much fuel security and price stability as possible when there are global disruptions to oil production.”
Woods’ comments follow Prime Minister Jacinda Ardern condemning Russia’s “illegal invasion” of Ukraine.
Ardern and Foreign Affairs Minister Nanaia Mahuta on Thursday announced New Zealand is responding by:
- Introducing targeted travel bans against Russian Government officials and other individuals associated with the Russian invasion of Ukraine, in line with other countries standing up to Russia;
- Prohibiting the export of goods to Russian military and security forces; and
- Suspending bilateral foreign ministry engagement until further notice.
The prime minister’s office explained the export controls cover weapons, dual use technology and goods that have a civilian use but that are intended for military use or that may have military applications. New Zealand can impose export controls in relation to any goods intended for military use on a case-by-case basis.
While exports from New Zealand under this category are extremely limited, a blanket ban is a significant step, as it removes the ability for exporters to apply for a permit, and sends a signal of support to Ukraine.
Furthermore, Mahuta said, “Officials have been engaging with affected businesses about the possible economic and trade impacts a military conflict could have on them. Russia is our 27th largest export market, with dairy accounting for about of half of those exports.”
“Given serious concerns that a military conflict in Ukraine could lead to a humanitarian crisis, I have also asked officials to provide advice on humanitarian response options, and how New Zealand could potentially contribute in this area.”
Ardern said, “We call on Russia to do what is right and immediately cease military operations in Ukraine, and permanently withdraw to avoid a catastrophic and pointless loss of innocent life.
“It is through diplomacy, not unnecessary death and destruction, that all parties can find resolution.”
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