Trade talks with Russia on ice

The Government has suspended efforts to restart negotiations for a free trade deal with Russia.

Prime Minister Jacinda Ardern says ‘‘the situation has changed’’ and both her and Foreign Affairs Minister Winston Peters were agreed that any trade talks that had restarted would now be suspended again.

Ardern said she didn’t know when, or if, the Government would be in a position to restart those talks.

The change of direction comes after months of Peters being clear on his plans to work towards a free trade deal with Russia.

He reiterated that intention only a week ago when he said: ‘‘When you start talking about those moral judgements, you might not be trading with anybody very quickly. A lot of countries we deal with would not survive a serious human rights issue, or gender equality issue or an ethnic issue debate – but we still trade with them.’’

The commitment towards a free trade agreement with the Russia-belaruskazakhstan customs union is included in NZ First’s coalition agreement with Labour.

However, pressure has been mounting on the Government over Peters’ position, particularly after Britain ordered the expulsion of 23 Russian diplomats believed to be involved in espionagerelated activities, in the wake of a nerve agent attack.

On Thursday British High Commissioner to New Zealand Laura Clarke suggested a trade deal with Russia, in the wake of the use of a chemical weapon on an ex-russian spy and his daughter, could impact deals with the European Union and Britain.

Clarke told Radio NZ that talks about free trade agreements with the EU and Britain ‘‘never happen in a vacuum’’.

Clarke said the EU and Britain were ‘‘very keen’’ to secure agreements with New Zealand, and Ardern said an EU deal was still New Zealand’s top priority.

But Clarke’s comments implied there may not be room for a deal with Russia, as well as the EU and Britain.

‘‘I’ll leave it to New Zealand to reach conclusions there about compatibility and prioritisation ... Who New Zealand does FTAS with is a matter for New Zealand.

‘‘These discussions between the EU and New Zealand, and discussions between the United Kingdom and New Zealand never happen in a vacuum.

‘‘A whole range of different factors are always discussed.’’

Clarke’s comments echo concerns voiced by an EU ambassador late last year, who said any move to undermine the sanctions against Russia would be taken with a ‘‘dim view’’ in Europe.

The European Commissioner was due to visit New Zealand to launch talks, but didn’t in light of concern over the new Government’s position.