Russia to sanction Australia after ‘unfriendly’ response to Ukraine invasion

Russian President Vladimir Putin has added Australia to a hit list of his own, as the nation hits back over harsh sanctions imposed in response to the Ukraine invasion.

Russian President Vladimir Putin has put Australia on a hit-list of countries taking “unfriendly actions against Russia”, allowing creditors to repay any debts “in roubles.”

Hitting back over punitive economic sanctions announced by western nations in protest against Russia’s bloody invasion of Ukraine, officials have drawn up their own list of countries they plan to sanction.

According to a decree published on the government’s website overnight, the list includes Australia, Albania, Andorra, Great Britain, including Jersey, Anguilla, British Virgin Islands, Gibraltar, EU member states, Iceland, Canada, Liechtenstein, Micronesia, Monaco, New Zealand, Norway, South Korea, San Marino, North Macedonia, Singapore, US, Taiwan, Ukraine, Montenegro, Switzerland, and Japan.

Russia has made a list of “unfriendly” countries and imposed sanctions back onto them in an escalation of tensions between the nation and the rest of the world.

Prime Minister Scott Morrison. Picture: NCA NewsWire / Gary Ramage

All of the countries on the list have applied tough financial sanctions on Russia that sent the Russian stock market and the rouble plunging in value.

Australia’s Future Fund is in the process of trying to divest $200m of holdings in Russian companies and is likely to be impacted by the changes.

The New South Wales government has also signalled it wants to sell its holdings of Russian assets in its investment funds, while Australian superannuation funds are also caught up in the crisis.

Business dealings in Russia involving Australia and other countries on the list will now require special government authorisation from the Commission for Control over Foreign Investments.

The rules mean Russian citizens and companies, and even the state itself, that have foreign exchange obligations to foreign creditors that are on the list will be able to pay them in roubles.

The new government order is temporary and is valid to payments exceeding 10 million roubles (around $72,202).

Russian President Vladimir Putin has previously declared any sanctions on Russia were akin to a declaration of war.

The new rules for dealing with “unfriendly” countries come after the West imposed heavy sanctions on Russia, crashing the value of the Rouble. Photo by Daniel LEAL / AFP

Under the new rules, any debt to an “unfriendly” country can be paid in roubles, which are now worth virtually nothing. Photo by Sergei GUNEYEV / SPUTNIK / AFP

“These sanctions that are being imposed are akin to a declaration of war, but thank God it has not come to that,” President Putin said.

Australia has denounced Russia’s “brutal, unprovoked and unacceptable” invasion of Ukraine as a flagrant breach of international law.

Prime Minister Scott Morrison accused Russia of months of aggression and intimidation leading up to the military attack.

“Together with the international community, we are banding together … to condemn these outrageous acts in the strongest possible terms,’’ he said.

Mr Morrison warned sanctions against Russia would continue to ramp up.

“We must ensure there is a cost for this violent, unacceptable, and egregious behaviour.”