A New Zealand-linked Russian steel magnate who is well-known for owning a luxury property in Northland is being sanctioned by the Government.
Alexander Abramov is one of 51 Russian oligarchs who "own assets and provide services with economic or strategic relevance to Russia" to be sanctioned on Tuesday. Also being targeted is Evraz, a steel company Abramov founded that produces more than 25 percent of Russian railway wheels and almost all of Russia's rail lines.
However, Abramov won't be subject to "full sanctions" as Foreign Affairs Minister Nanaia Mahuta said "the disruption felt by New Zealanders is likely to be greater than that felt by Mr Abramov himself".
"I have sought, and taken, extensive advice before deciding to sanction Mr Abramov," she said. "I have factored in his connections to the local economy and the impact that applying full sanctions would have on small businesses and livelihoods connected with his business interests."
Mahuta has instead decided on a "tailored approach", with Abramov and his family subject to a travel ban, while their aircraft and vessels will be banned from New Zealand's airspace and ports.
"The intention of our sanctions is to exert pressure on Russia, not punish innocent New Zealanders. We hope that the considered actions we are taking will encourage Mr Abramov to voice concerns about Russia's war on Ukraine," the minister said.
"Although I am advised that his representatives in New Zealand insist he has not played a role in the invasion and has not lived in Russia since 2016, as a leading businessman with links to Russia's political and economic elites I expect he has the influence to speak up and be heard."
In March, when the the Russian Sanctions Act was first introduced, the Government was questioned on whether Abramov could be targeted. A flotilla of activists sailed past Abramov's large complex in Northland's Helena Bay calling for him to be added to the sanctions list.
Mahuta at the time said just because someone is Russian and wealthy doesn't mean they will be added to the list.
Abramov, who according to Forbes is worth more than NZ$8 billion, has links to housing developments in New Zealand and was the chairman of steel and mining company Evraz, but resigned alongside the rest of the board of directors in March.
That came after the UK placed sanctions on major stakeholder Roman Abramovich and the company's shares were suspended from trading on the London Stock Exchange. The UK Government placed sanctions on Evraz in May, saying it "operates in sectors of strategic significance to the government of Russia".
On its list of asset freeze targets, in a section about Abramovich, the UK said Evraz has been involved in activities that could destabilise Ukraine, including potentially supplying steel to the Russian military. But Evraz has denied this, saying it only supplied long steel to infrastructure and construction sectors.
"The Company denies the statement that it 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."
Mahuta also announced on Tuesday sanctions on an additional 24 officials in areas of Ukraine which Russia now claims is part of its territory.
These individuals were "agents of annexation" during "recent attempts to illegally annex regions of Ukraine", Mahuta said.
"We reject what they represent, and we will continue to identify and sanction them. We have also extended sanctions on all members of the State Duma and Federation Council, Russia’s houses of Parliament which have given their support to Russia’s illegal actions," she said.
"Sanctions have also been applied to a Russian state-owned company that makes passports for occupied areas of Ukraine, and a Russian public relations firm involved in managing the public campaign around the sham referenda."
Trade Minister Damien O'Connor said trade between Russia and New Zealand has significantly reduced since sanctions were first imposed earlier this year. That includes a 75 percent drop in imports.
New meausres are being taken on Tuesday, including a "significant expansion of the range of exports of strategic importance prohibited to Russia and Belarus, and prohibiting certain luxury goods from being traded with Russia".
"Additional measures to limit Russia’s energy revenue have also been introduced including prohibiting imports of Russian oil, gas and coal; and banning the export of oil exploration and oil production goods to Russia. The 35 percent import tariff on goods of Russian origin, due to expire in November, has also been extended until 2025."
New Zealand has consistently condemned Russia's invasion of Ukraine in February, including last month when Russian President Vladimir Putin announced a partial mobilisation and threatened the use of nuclear weapons.
Ukraine's capital of Kyiv was hit by Russian missile strikes on Monday night. That came after a critical bridge between Russia and the annexed Ukrainian region of Crimea was attacked on the weekend.
Until earlier this year, New Zealand had no ability to unilaterally impose economic sanctions without approval from the United Nations. But all MPs supported the passing of the Russian Sanctions Bill following Russia's invasion of Ukraine.
