With the Russia Sanctions Act now in place, this week New Zealand turned its focus to humanitarian assistance for Ukrainians fleeing the war. UN figures on Monday showed that 2.8 million refugees had left Ukraine since the war began.

On Tuesday, Foreign Minister Nanaia Mahuta announced New Zealand would provide an additional $4 million in humanitarian aid to UN agencies, while Immigration Minister Kris Faafoi provided details of a new 2022 Special Ukraine Policy that will give work visas to Ukrainians who already have family in New Zealand.

The special two-year work visas for Ukrainians require sponsorship from New Zealand-based Ukrainian family members, of which Faafoi says there are about 1,600.

EU countries are accepting an unlimited number of Ukrainian refugees and are offering them residency for three years, with no visas required. Outside Europe, Canada announced at the start of March that it will also accept an unlimited number of Ukrainians for at least two years, regardless of whether applicants have existing ties to the country.

It is true that our new visa programme – which the Government believes will benefit about 4000 people – will undoubtedly help some Ukrainians who are fleeing the war. However, the requirement for existing family ties and sponsorship means the programme is not open to Ukrainians generally and is far more restrictive than the offers from the EU and Canada.

In this respect, New Zealand’s new scheme shares some similarities with the special visas that we issued to Afghans fleeing the Taliban takeover of Afghanistan last year. In that case, applicants needed to demonstrate they had assisted the New Zealand Defence Force or another New Zealand Government agency in Afghanistan.

From the Government’s perspective, one advantage of the new scheme is that, in effect, it places the immediate burden on sponsors – ie family members – to look after the new arrivals, a major asset given New Zealand’s ongoing housing crisis. Newsroom reported in November that the Government had asked public servants to personally assist with finding housing options for evacuees from Afghanistan.

New Zealand’s general refugee quota remains at the annual 1500 level that Labour set in 2020. This target – an increase from the previous 1000 – has not been met. Just 263 refugees arrived in 2020-21 and only 463 have been resettled in the current year, a shortfall the Government attributes to the global impact of Covid-19.

On Tuesday the Government said it was still waiting to hear back from UNHCR, the UN Refugee Agency, on accepting refugees from Ukraine under New Zealand’s quota. But New Zealand could consider lifting its quota and acceptance rates even now: Russia’s war on Ukraine will only put further pressure on existing global refugee numbers that had already doubled over the past decade to 20.7 million people, according to UNHCR data.

On the wider geopolitical front, New Zealand has more reason to be nervous than most when it comes to media reports that suggest China may provide military assistance to Russia.

This week outlets including the Financial Times and CNN reported leaked US intelligence claims that alleged Beijing was willing to provide some level of military assistance to Moscow.

Amid the fog of war, such individual reports need to be treated with caution – and China officially dismissed the reports as “disinformation”. Still, the potential ramifications of any possible entry into the war by China could be enormous.

Until now, Beijing has to some degree hedged its bets on the war. Chinese President Xi Jinping has not publicly condemned Russia for the invasion – and Beijing also abstained on UN resolutions calling on Moscow to withdraw.

But China’s foreign minister, Wang Yi, has also said the country “laments” the outbreak of war and has expressed an interest in playing a mediation role. New Zealand appeared to endorse this idea at the start of March, when it officially “encouraged China to use its access and influence” with Russia.

Tweets by Chinese representatives in New Zealand show China’s hedging process in action. Wang Xiaolong, the Chinese ambassador in Wellington, optimistically tweeted on March 1: “First round of talks between Ukraine and Russia must be welcomed. Although no agreement has been reached yet, as long as they are talking, negotiated settlement has a chance! Peace will have a chance!”

But on Tuesday, Xiao Yewen, the Chinese vice consul-general in Auckland, repeated lines from a Chinese foreign ministry spokesperson who was in turn relaying unfounded Russian accusations of US-controlled biowarfare labs inside Ukraine. The US has previously called the laboratory allegations “laughable” and “classic Russian propaganda”.

If the US intelligence claims on potential Chinese assistance to Putin’s war are borne out, they might be a measure of just how badly Russia’s invasion is going.

It is now a real possibility that Vladimir Putin could face defeat in Ukraine, or could at least fail to achieve anything that comes close to Russia’s original objectives. But the high cost of the invasion being incurred by Russia in the form of crippling economic retaliation by the west – including the devastating official sanctions, but also the effective economic boycott of Russia by many wWestern companies – may trigger something even bigger.

Protests in Russia are still small and are being quickly crushed by Russia’s immense security apparatus. But as the economic costs from the war begin to mount, mass unrest and even regime change cannot be ruled out.

Fears of these forces being unleashed – and the precedent they may set – could provide the rationale for Xi Jinping to start helping  Vladimir Putin, who Xi has called his “best friend”.

For New Zealand, any prospect of Chinese intervention in the war should ring alarm bells. New Zealand’s new Russia Sanctions Act allows for countries that assist Russia to be punished as well – a provision that was designed largely with Belarus in mind.

The definition of a “country who may be assisting Russia” allows for some wriggle room, but if New Zealand chooses or is forced to sanction China as well, the repercussions are likely to be enormous.

The collective western response to any Chinese involvement in the war would probably differ from action taken so far against Russia, given the scale of the west’s economic interdependence with China.

Still, New Zealand is far more exposed to China than many others. A third of New Zealand’s exports – or roughly $20 billion annually – are sent to China. By comparison, the US sends only 8.8 percent of its exports to China, and the UK just 4.7 percent.

Rural lender Rabobank warned last week that the potential spread of sanctions to China would present a dire situation for China and trading partners such as New Zealand.

For New Zealand, the stakes could certainly not be higher.

Vladimir Putin’s war may become Jacinda Ardern’s problem.

Geoffrey Miller is the Democracy Project’s international analyst and writes on current New Zealand foreign policy and related geopolitical issues. He has lived in Germany and the Middle East and is a learner of Arabic and Russian.

Geoffrey Miller is international analyst for the Democracy Project, based at Te Herenga Waka Victoria University of Wellington.

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