By Rebecca Howard
WELLINGTON, New Zealand--A free-trade agreement with Russia,
Belarus and Kazakhstan is on hold because of events in the Ukraine,
New Zealand Prime Minister John Key said Monday.
"While the situation and history is complex what is becoming
clear is that Russia is taking steps that have infringed the
sovereignty of the Ukraine and that is unacceptable," Mr. Key told
a news conference.
New Zealand has been negotiating an agreement with the three for
the past three years and Mr. Key had expected it to be signed
"pretty soon."
However, "I can't rule out that what's currently happening in
the Ukraine will and could have an impact on the progress of
signing the free trade agreement," Mr. Key said.
"I don't think this would be the right time for us to be signing
an FTA if there was one on the table today," he said. He didn't
rule out the possibility New Zealand could pull out of negotiations
but that wasn't an option he preferred.
Earlier Monday Foreign Affairs Minister Murray McCully said "New
Zealand is deeply alarmed at the escalation of tensions in Ukraine
over recent days and we condemn the breach of Ukraine's sovereignty
and territorial integrity."
Late Sunday members of the Group of Seven issued a joint
statement condemning Russia's "clear violation of the sovereignty
and territorial integrity of Ukraine" and said they would suspend
their participation in activities associated with the preparation
of the Group of Eight summit "until the environment comes back
where the G-8 is able to have meaningful discussion."
Write to Rebecca Howard at rebecca.howard@wsj.com