In this episode, Senior Associate Alex Church is joined by partners Aaron Lloyd, Sean Gollin and Sarah Salmond who delve into the impact of sanctions regimes on New Zealand businesses and overseas. The episode discusses the diverse categories of affected entities, from investors and exporters to service providers and foreign nationals working for New Zealand companies. Looking ahead, the group examine the future of sanctions in New Zealand, discussing potential law reforms, escalating tensions between banks and customers, and the likelihood of heightened global enforcement activities.
Understanding sanctions [00:00:45 - 00:01:43] The discussion begins with an exploration of the nature of sanctions globally, emphasising the increased significance post-Russia's invasion of Ukraine in 2022. Sarah breaks down different types of sanctions and the global importance.
Evolution of sanctions in New Zealand [00:02:13 - 00:03:34] Sarah discusses the evolution of sanctions in New Zealand. She breaks down recently imposed sanctions and new legislation that was passed to enable independent sanctions targeting Russia due to the Ukraine crisis. The team also mentions Targa Capital Limited v Westpac New Zealand Limited [2023] NZHC 230.
Impact on New Zealand businesses [00:03:35 - 00:05:00] The team give an overview of the primary impact on reporting entities and other companies, broader impacts, and examples that illustrate counterparty risk and international exposure.
Categories of affected businesses [00:05:26 - 00:11:38] Sarah explains how New Zealand investors were affected by Russia's invasion. She touches on exporting challenges, service suppliers and the number of Russian nationals in New Zealand that have been impacted.
Commercial implications beyond legal risks [00:11:38 - 00:13:31] The team talks about intermediary steps and the risks involving US dollar transactions. They also mention the commercial impact including the slowdowns in transactions, delivery of goods and services due to regulatory scrutiny.
Future of sanctions in New Zealand [00:13:31 - 00:17:00] Finally, the team mention the possibility of introducing an autonomous sanctions bill in Parliament and increase in disputes as entities become more risk averse. They discuss the anticipation of more investigations and prosecutions for alleged sanctions breaches and the increasing regulatory obligations beyond sanctions compliance.
Information in this episode is accurate as at the date of recording, 01 February 2024.
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Please contact Aaron Lloyd, Sean Gollin, Alex Church, Sarah Salmond or our Litigation team if you need legal advice and guidance on any of the topics discussed in the episode.
You can read our full Litigation Forecast 2024 article on sanctions litigation here.
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