Russian gold imports to be banned
New Zealand will follow other Western countries in banning the importation of Russian gold.
Foreign Affairs Minister Nanaia Mahuta said the decision signalled Aotearoa New Zealand’s condemnation of Russia’s ‘‘flagrant violation of Ukraine’s sovereignty’’.
Russia has large gold reserves, which some Western countries fear could be sold to help finance Russia’s war in Ukraine.
It is not clear whether the ban includes Russian gold that has been manufactured into items like jewellery in manufacturing hubs such as India and China.
Mahuta said the plan to ban Russian gold imports underscored New Zealand’s determination not to become a safe haven for Russian assets.
‘‘It also supports international efforts to ensure Russia does not circumvent international sanctions by leveraging its immense gold reserves to finance its illegal war,’’ she said.
Trade and Export Growth Minister Damien O’Connor said: ‘‘Russia’s financial system has been cut off from international markets. New Zealand is moving now to prevent the Kremlin from resorting to propping up the rouble through its holdings of gold.
‘‘Twenty per cent of the Russian Central Bank’s reserves are held in gold. Under the Russia Sanctions Act, we are making it illegal for New Zealanders to import gold of Russian origin,’’ O’Connor said.
New Zealand gold experts said there was no watertight system for tracking gold.
Mahuta said the ban followed statements during last week’s G7 Summit on tackling Russia’s revenue from gold, Moscow’s largest export after the energy sector.
Australia had also announced it would impose an import ban on gold.
More details would be contained in regulations which were being finalised to bring the ban into effect from July 25.
The World Gold Council ranks Russia as the world’s secondlargest producer of gold. New Zealand is a net exporter of gold, data from Stats NZ shows.
Some international media have dubbed the Russian gold ban as a symbolic gesture, and Baz Howie, founder of the Waihihi Bullion Company, criticised the sanctions, which he said were doing damage to Western economies.
‘‘Creating a supply crisis in gold, which is what you will do, is going to force the price up,’’ Howie said.
New Zealand has already banned exports to Russian and Belarusian military and security forces, suspended diplomatic consultations with Russia, and passed the Russia Sanctions Act.