95bFM What secondary sanctions imposed on Russia’s allies could mean for the West
16 September, 2025
Interview by Max Micheel, Adapted by Vihan Dalal
The United States, along with the European Union (EU), is set to move to a second phase of its sanctions against Russia in an effort to ramp up economic pressure to halt its war on Ukraine, which has been raging since 2022.
The current set of sanctions adopted by the EU include barring Russia from the global SWIFT banking system, blocking the Russian Central Bank and government's assets and reserves, and an arms embargo, among a slew of other sanctions.
Stephen Hoadley, an International Relations Professor at the University of Auckland, told 95bFM’s The Wire that the EU is seeking to expand its sanctions on Russia, including a shadow fleet of tankers.
“At the moment, it looks like Europe may agree on further curbs on Russian credit card use, on the use of crypto exchanges, on the use of this so-called shadow fleet of derelict tankers that are carrying Russian oil to India, Turkey, South Africa, whoever will buy it, that is breaking the sanction.”
Hoadley says secondary sanctions, which are sanctions on countries trading with Russia, can cause a “dilemma” for the West, especially New Zealand.
“It's a dilemma because it will reduce trade with secondary countries like India. And remember, India is the great hope for New Zealand.”
New Zealand is currently pushing for a Free Trade Agreement (FTA) with India in an effort to enter its large market. New Zealand’s exports to India are worth $435 million, and total two-way trade amounts to $3.14 billion annually, according to the Ministry of Foreign Affairs and Trade.
New Zealand’s imports from India are worth $742 million, including pharmaceuticals, electronic equipment, and machinery.
Hoadley says imposing secondary sanctions on Russia ‘s allies and its shadow fleet may increase the price of petrol.
He adds that Trump’s recent imposition of 50 per cent tariffs on India has caused it to forge closer relations with China.
“The imposition of secondary sanctions on India is a particularly bad idea because India was being wooed away from, first of all, Russia and China as well, and was moving towards the Western side of the geopolitical alignment. Well, now we see Modi has gone to the economic summit in Tianjin a couple of days ago, shaking hands with Xi.”
Hoadley says that although the current set of sanctions have caused an economic slowdown and a devaluation of the Rouble, it hasn't affected its oil production.
“But the sanctions as a whole haven't really stopped the means of income for Russia with the export of over three million barrels a day of oil, even with the sanctions going on.”
The current price cap at which Europe buys oil from Russia has been reduced to $47.60 (NZ$ 80.32) from $60 (NZ$ 101.25).
