Trade talks with Russia put on ice after spy's poisoning in UK

The Government has suspended efforts to restart trade talks for a free trade deal with Russia. 

Prime Minister Jacinda Ardern had said previously New Zealand planned to restart trade talks with Russia after they were suspended in 2014, although this had yet to happen.

Ardern said "the situation has changed", and she and Foreign Affairs Minister Winston Peters agreed all efforts to restart negotiations have been suspended.

Ardern said she didn't know when, or if, the Government would be in a position to restart those talks.

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"While talks for a Russia FTA which had been suspended in 2014 have not resumed, in light of the Salisbury incident it's too early to say if or when they might resume," said Ardern.

The change of direction comes after months of Peters being clear on his plans to work towards a FTA with Russia.

He reiterated that intention only a week ago when he said: "When you start talking about those moral judgements, you might not be trading with anybody very quickly. A lot of countries we deal with would not survive a serious human rights issue, or gender equality issue or an ethnic issue debate - but we still trade with them."

The commitment towards an FTA with the Russia-Belarus-Kazakhstan customs union is included in NZ First's coalition agreement with Labour.

However, pressure has been mounting on the Government over Peters' position, particularly after Britain ordered the expulsion of 23 Russian diplomats believed to be involved in espionage-related activities, in the wake of a nerve agent attack.

Ardern said that New Zealand supports the joint statement made by the leaders of the UK, US, Germany and France on the nerve agent attack in Salisbury, UK. 

"Outrage at the brazen and callous use of chemical weapons in a UK town is fully justified. This attack left three people seriously injured, including a police officer who assisted at the scene, and potentially threatened many more," said Ardern.

She said that there's no plausible explanation that this came from anywhere other than Russia and that Russia had serious questions to answer. 

"New Zealand fully supports the sovereign right of the UK to take the action it considers appropriate in response to this violation of international law on its territory. We stand in solidarity with the UK alongside its other partners.

On Thursday British High Commissioner to New Zealand Laura Clarke suggested an FTA with Russia, in the wake of the use of a chemical weapon on an ex-Russian spy and his daughter, could impact FTAs with the EU and the UK.

Clarke told Radio New Zealand that talks about free trade agreements (FTA) with the EU and UK "never happen in a vacuum".

Clarke said the EU and the UK were "very keen" to secure FTAs with New Zealand, and Ardern said an EU FTA was still New Zealand's top priority.

But Clarke's comments implied there may not be room for an FTA with Russia, the EU and the UK.

"I'll leave it to New Zealand to reach conclusions there about compatibility and prioritisation... Who New Zealand does FTAs with is a matter for New Zealand.

"These discussions between the EU and New Zealand, and discussions between the UK and New Zealand never happen in a vacuum.

"A whole range of different factors are always discussed."

Clarke's comments echo concerns voiced by an EU ambassador late last year, who said any move to undermine the sanctions against Russia would be taken with a "dim view" in Europe.

The European Commissioner was due to visit New Zealand to launch talks, but didn't in light of concern over the new Government's position.