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Government confidence Russia's 'illegal invasion' of Ukraine won't affect NZ's fuel supply; Responds to conflict with travel ban and prohibition of some exports to Russia

Public Policy / news
Government confidence Russia's 'illegal invasion' of Ukraine won't affect NZ's fuel supply; Responds to conflict with travel ban and prohibition of some exports to Russia
Jacinda Ardern. Press Gallery pool photo.

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.”

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

73 Comments

In breaking news, a shipment of unused Te Huia rail tickets is being airlifted to the Foreign Minister, for use in diplomatic encounters with the Russia-China-Iran Axis spox.  Irrigating these tickets to the required level of hydration before their use will be done locally, using one or other of the 3 waters available.

As of this writing, no comment from the Axis has been forthcoming.

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17

Exports of Aroha to Russia will also be halted, until Putin can show that he's prepared to do his bit for his Friends, Whānau, and Community.

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20

Supply assurance what about price …

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I don't buy that supply assurance.

Woods has no idea how long the refined oil stocks will last. In fact she has no idea....

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5

News flash.  We have a reply from Gavrila Conyntyrmich, 4th undersecretary to the Assistant Commisar of the Russian Pacific Peoples Outreach Commissariat.  Text is machine translated so may be a little inelegant in places.

"Thank you for meeting with us, Foreign Minister.  We of course understand that ritual demands have been made, which we respectfully decline to follow. 

We did not expect the damp paper facial, but in the spirit of comradeship and bonhomie must convey our sincere thanks for the temporary cooling this provided.  We children of the vast frozen steppes are not yet acclimated to Euro central heating.

May I also pass on a special message from our Dear Leader.  He observed your own masterful slight of hand in dealing with a domestic watering crisis, whereby you promised consultation and dialog and then did what you has always intended to do. He took that as a guide for our own recent reclamation of a revered part of Our Motherland.  He thanks you for the sturdy example and wishes you well in future similar excursions."

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And having finished that, and turned said  microphone to off, said while carefully practising  social distancing, but not in an unfriendly manner either, more in wonder “and who exactly are you again, comrade?”

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So much sarcasm in what is a horrific situation in Ukraine 

Putin is a pig miscreant. Puts things into perspective- all the vitriol in Wellington- we are all very lucky to live in this country people could do with being reminded. 💔 Ukraine

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"- Prohibiting the export of goods to Russian military and security forces; and"

oops there goes NZ 42below vodka sales for a loop

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oops there goes NZ 42below vodka sales for a loop

Most Russians don't really buy overpriced boutique booze. F'more, they have some pretty good vodka of their own. Unavailable in NZ. 42B doesn't mean anything in Russia.    

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Yeah we may continue to get fuel okay but just watch the price of it go through the roof.

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9

Buy an EV!

...Oh. Hang on. The nickel, copper and palladium used to make it may well be from Russia. Possibly the lithium as well.

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6

I'm wondering at which point the government is planning to confiscate private stocks...

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Russia did the right thing to protest her own national security.

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Your a disgrace. 

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14

To who(m)?

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You're*

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Taiwan should be protecting its national security too, eh?

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Taiwan is not a nation and its security is China's sole responsibility.

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China has less chance of taking Taiwan as Mussolini did Malta! And they know it. And their President knows too, the consequences of failure.

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If China tries, the numbers of troops dead for a country where there is only one future bread winner in the family, will very quickly cause the CCP to become really really unpopular.

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Hypersonic precision missile strikes more effective - witness Russia overnight. Send in peace keepers after the fact.  

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Perhaps, but probably not. No one people have ever been bombed into submission. Boots on the ground are prerequisite. Getting boots across a land border is a walk in the park compared to a heavily fortified island, situated in treacherous seas. Just read the accounts of the marines Pacific WW2. Oh and don’t overlook either this particular target has teeth. Enough missiles to retaliate mainland targets substantially, sufficient submarines, and defences continually perfected for over seventy years.

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And some big mother f'er torpedoes on order.

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Predictable comment from the Beijing Bot.

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she really is not in the same world as the rest of us --  

10% of the global production goes --  competition for the 90% including the stuff we buy increases -- demand is going nowhere -- prices will go up -- already have significantly --  and we want to not only end oil exploration but also close our refining ability -  

its already significantly impacted on the price at the pump -- - before the invasion -- or did she miss that because she doesnt pay for fuel ?  

 

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25

Where is 10% of global production going? The whole world isn't going to stop buying Russian oil - I'm sure the Chinese will offer to lap it up for a suitable discount if the West stops buying. 

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The respective leaders of Russia & China have been well met, during the Olympics. An understanding of mutual agreement, objectives & security both economically & militarily will have been achieved. What markets Russia loses China will easily absorb, what manufacturing Russia needs, China will readily produce, what fuel China needs Russia will actively supply. A Sino Russia pact of self sufficiency why not. And then look at the areas of deep interest & influence. Nth Korea, Myanmar, Pakistan, Afghanistan, Iran, Syria, Iraq & Lebanon arriving. Enormous swathe of territory thereby at their disposal. Factor in Mongolia, Ukraine now, Georgia, Armenia potentially & even maybe Moldova. That between the two powers virtually re-establishes the Genghis Khan Empire, finalised by his grandson Kublai, hence the Yuan Dynasty, when he mopped up the rest of China. Catchy title for a currency, that is.

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Russia is still the second largest producer of crude oil after US.

Same position in natural gas production.

And half the US population.

When people say, “Russia is just a gas station with nuclear weapons,” I have to wonder about their overall knowledge. Because no, Russia is a highly sophisticated manufacturing and energy powerhouse full of well-educated people. Russia has everything from vast oil and gas fields to a space program that spent the past dozen years flying American astronauts into low orbit. And there’s much else of an advanced nature within the Russian economy, so don’t discount the place for even a second. Byron King

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i get it what you are saying and totally Putin will have cut a deal with China to limit the economic damage -  but 10% of the global production is a lot to ship and move --currently  without Western support -- which will not be forthcoming - -

Also in terms of Natural Gas -- its jumped 50% in the last 24 hours trading  - Europe better hope its an early and warm spring !

The pipeline connections to China are still several years off -- although i suspect China will accelerate that massively 

No way we are not going to see sustained pressure on OIL and Gas prices - -possibly for years as a result

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Power of Siberia (Sila Sibiri, formerly named the Yakutia–Khabarovsk–Vladivostok pipeline, also known as China–Russia East-Route Natural Gas pipeline; Russian: Сила Сибири, Chinese: 中俄东线天然气管道; pinyin: zhōng é dōng xiàn tiānránqì guǎndào) is a Gazprom-operated pipeline in Eastern Siberia that transports natural gas from Yakutia to Primorsky Krai and China. It is a part of the eastern gas route from Siberia to China. The proposed western gas route to China is known as Power of Siberia 2 (Altai gas pipeline).

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“New Zealand does not purchase any oil or oil products from Russia..."

A cursory glance at the United Nations COMTRADE database on international trade suggests New Zealand imported $244m of "Mineral fuels, oils, distilled [petrochemical] products" from Russia in 2020. I didn't bother checking polymers, plastics and resins or other petrochemical derived products.

I would have been very surprised if we didn't purchase petrochemical products from Russia. If government are going to lie to us can they at least make it a lie that's difficult to verify or not completely obviously a lie?

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Aside from that well spotted lie, I don't think anyone has even stopped buying Russian energy anyway.  Most countries screaming at Russia while still buying their energy, will sanction to the extreme as long as they get their energy.  As effecting as pssing into the wind and just as pleasant.

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Yep. Turn off the spigots and we'd have Russias immediate attention as it's their main export. We can't though, we're addicted to cheap energy. As ever we're happy to buy from any country no matter how dubious their human rights or environmental record.

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You have it the wrong way. Russia turn off the spigots and the whole EU will come begging.

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Squishy I have come to quite a few  conclusions about our government. Amongst that firstly if you paid them $500 to tell the truth & $100 to lie, they would opt for $100. Secondly do believe they have come to lie so easily that now, they don’t even know when they are lying.

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Uncle Volodya says, “When an honest man speaks, he says only what he believes to be true; and for the liar, it is correspondingly indispensable that he considers his statements to be false. For the bullstter, however, all these bets are off: he is neither on the side of the true nor on the side of the false.”

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Look, this ain't my first rodeo. I know how democracy works, but I at least want them to whisper me sweet little lies like telling me they would never forsake me or chase other voters before they spend the night in the bridal tent. Every now and then we all want to believe that government isn't just in this for the votes and we aren't being taken for granted, we want to feel special.

Know what I mean?

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On that note -- re the Podium of Truth--    TODAY was the first day in TWO years -  that NGO healthcare providers were actually able to order N95 masks on the MOH PPE portal --      And that can be factchecked to infinity and beyond -     Two years of lies !  

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Strategic Fuel Reserves.  New Zealand has no stored capacity hidden around the place.  What we have is agreements to ship us stuff when it all gets difficult.

A Wellington solution indeed.  Who believes if things are really short worldwide, the stuff will actually arrive?

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Even if we exercised the option to take delivery we don't have a refinery any more.

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Last I checked, ours is in Singapore. Nobody will outbid us, though.

:)

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Post History - Fact Checked - Truth.  Putin is just like Hitler and wants to rebuild the Soviet Union because he is an evil man brimming full of badness. 

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Hmm lemme guess where you get your news from.....

Russia is a proud country with a history longer than the west. There is more to this war than what is reported in the braindead western media.

Maybe we need to realize that western ideals are not the goal of every other country.

 

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Really?  This government is definitely not fit for purpose.

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NZ is last on the list for fuel deliveries to be sure. Turnaround times too long, better profits on the quicker trips. On the other side, car parks a plenty & getting around town no problem - until we run out of petrol, that is. We'll all be biking by Christmas.

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Remember Mad Max 1.

Might become like that. If you drive through some dodgy areas you may have to pack some heat!

 

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She's a bit rich quoting the IEA.

They produced that infamous 2010 graph - the one with 'fields yet to be found' stacked not at the top in dotted lines, but coloured-in and half-way down the stack - making the upper lime palatable.

https://www.countercurrents.org/tverberg101110.htm

Trust them? Hand drumming on oil barrel. Sure can......

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Whilst our allies sanction Russia, our Government "condemns" them. Whatever the hell that means. That would be because our Government have a policy of not sanctioning any country unless the UN carries a vote to do same. Except Russia has a veto. Soooooo, our genius Labour Government will not sanction Russia unless Russia agrees to them sanctioning Russia. Doh. This Government has to be the most inept Government formed in NZ history. They truly are hopeless, out of their depth and too a man|women, intellectually bereft.

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Comrades don't like to be too critical one one another

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I was expecting comments here who would argue it is still better to be in Ukraine/Russia than living in NZ right now due to the housing crisis.  Where are those people?  I thought NZ was heading to the bin?

Yup, didn't think so.  What a safe and secure country.  Very blessed to be here no matter what issues we have internally.

 

-7

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That's true on the one hand, but also disingenuous to compare ourselves to basket cases.

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As per for example, General Philip Sheridan, on declining the governorship  of Texas - if I was offered Texas or Hell, I would live in Hell and rent out Texas.

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Have you been to Texas?

It's awesome

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Yes indeed & agree.San Antonio mostly. Great people to be amongst.

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But NZ could be a world class, world leading basket case....

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“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.”

If this is true, the meaning of price stability would mean a +35% at retail over the 12 month period by her definition is stable.

As expected, the performance exceeded expectations from their supporters- just like her housing portfolio.

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I understand the tax on petrol is around 50%.

50% of $2 = $1

50% of $3 = $1.50

Price goes up, tax take also goes up.

 

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All that hard work that bureaucrats do deserves a pay rise

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EU sanctions aim to shut down Russia's energy production. I cannot see Biden being pleased ahead of midterms.

BRUSSELS, February 25. /TASS/. A new package of European sanctions against Russia, approved by leaders of the 27 European member states during an emergency summit on Thursday night, will hamper Russia’s oil refining and sales and cause billions in losses, European Commission President Ursula von der Leyen told reporters in Brussels on Friday.

In her words, the EU sanctions against Russia’s energy sector prohibit exports of "instruments <…> that are crucial to refine the oil."

"These instruments are built in Europe, they are unique and cannot be replaced globally by other suppliers," she added. Link

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Instruments can be reverse engineered. Russia and China between them have engineers of world class  and in vast numbers.  The relative lack of STEM graduates in the West has long had strategic observers concerned.  Now the Russia-China-Iran Axis is gonna take full advantage.....

But we'll be fine.  Retraining all of them ....Studies graduates should be a snap.

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Rogue EU German diplomat?:

In his words, the energy sector - including Japan’s participation in gas projects on Russia’s Sakhalin Island - was excluded from sanctions in coordination with US and other partners. Link

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right with you there wm. after all what’s the point in stealing intellectual property, as decried by victims for a long time now, if you ain’t got either the will or capability to replicate & produce said property. long time ago recall a story by Stirling Moss how Mike Hawthorne had got a drop on him by having Ferrari engineers reproducing overnight the disc brakes of Hawthorne’s Jag and planting them on his Dino. Still though, these two allies , haven’t done all that well with their covid vaccines it seems. guess always room for improvement.

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Biden doesn't know whether he's pleased or not. He reads it from a cue card.

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Oh crap, these days whenever I read "the government is confident..." I start worrying. Time to buy an electric car.

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The govt is also confident that they can take the oil/coal/gas thermals down to zero in the face of rising demand!

I am not confident at all about that either.

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So, are we are at the front of the queue for fuel?

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Maybe the fuel will only be sold to those who are double vaxed.

 

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Two jabs for summer, 3 jabs for fuel.

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So much sarcasm in what is a horrific situation 

Putin is a pig miscreant. Puts things into perspective- all the vitriol in Wellington- we are all very lucky to live in this country people could do with being reminded. 💔 Ukraine
 

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0

So much sarcasm in what is a horrific situation 

Putin is a pig miscreant. Puts things into perspective- all the vitriol in Wellington- we are all very lucky to live in this country people could do with being reminded. 

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0