Australia and New Zealand targeted by Russia’s sanctions
As the Russian invasion of Ukraine enters its second week, Moscow has hit back against Western countries for taking “unfriendly actions against Russia” - including Australia and New Zealand.
Russian officials have drawn up a list of countries they plan to sanction in response to the punitive economic sanctions Western countries announced in protest of the invasion.
According to a decree published on the government’s website on Monday night, the list of sanctioned countries includes: Australia, Albania, Andorra, Great Britain (including Jersey), the British Virgin Islands, Iceland, Canada, Liechtenstein, Micronesia, Monaco, New Zealand, Norway, South Korea, San Marino, North Macedonia, Singapore, the US, Taiwan, Ukraine, Montenegro, Switzerland, Japan, and EU member states.
As a result of the sanctions every country on the list placed on Russia, the country’s stock market and the rouble plunged in value - with one rouble worth 0.9 of an Australian cent as of Tuesday.
With Russia’s new sanctions, Russian business dealings involving Australia and other countries on the list will now require special government authorisation from the Commission for Control over Foreign Investments.
The rules also mean that Russian citizens, companies and the state itself that have foreign exchange obligations to creditors from the list will be able to pay them in roubles.
However, the new decree is a temporary measure and only valid to payments exceeding 10 million roubles (around $98,369).
Australian institutions and companies wanting to sell holdings in Russian companies are likely to be impacted by the changes, including Australia’s Future Fund - which currently has $200 million in holdings - as well as the NSW state government and Australian superannuation funds.
Putin has previously said the sanctions the West has placed on Russia are “akin to a declaration of war”.
“But thank God it has not come to that,” he said.
Meanwhile, Prime Minister Scott Morrison has accused Russia of engaging in months of aggression and intimidation in the lead-up to the attack, and has warned that sanctions would continue to ramp up.
“Together with the international community, we are banding together … to condemn these outrageous acts in the strongest possible terms,” Mr Morrison said.
“We must ensure there is a cost for this violent, unacceptable, and egregious behaviour.”
Image: Getty Images