25 Feb 2022

Russian invasion of Ukraine won't affect New Zealand fuel - Minister

1:49 pm on 25 February 2022

Russia's invasion of Ukraine will not directly affect New Zealand's fuel supply, Energy Minister Megan Woods says.

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Energy and Resources Minister Megan Woods Photo: RNZ / Samuel Rillstone

In a statement this afternoon, Woods said any resulting curtailment of Russian oil supply would not 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," she said.

In a broadcast statement this afternoon, Prime Minister Jacinda Ardern said New Zealand's imports of Russian oil historically had been limited to "about 20 percent", and Z Energy for example had not purchased any in the last six months.

"Our fuel supply tends to be dominated by Middle East and Asia."

She said what was happening would not affect New Zealand's supply, but the role Russia plays in international markets - on wheat and fuel, and particularly in trade with Europe - can be expected.

Woods said New Zealand is a member of by the International Energy Agency (IEA), and holds offshore strategic reserves of fuel to manage disruptions to the oil market.

IEA analysis suggested world oil production was more than sufficient to meet demand caused by any disruption from the invasion, she said.

"We are actively consulting with its 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."

"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."

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