Key Takeaways From Putin Speech at Eastern Economic Forum 2023
11:25 GMT 12.09.2023 (Updated: 12:47 GMT 12.09.2023)
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Russian President Vladimir Putin summed up the economic, social, and cultural development of the Far East as he addressed the plenary session of the Eastern Economic Forum (EEF) on September 12, while also outlining goals for the near and distant future.
Russia's Far East is a strategic priority for the entire 21st century, underscored President Vladimir Putin, addressing the plenary session of the Eastern Economic Forum (EEF) on September 12.
This theme became the dominant one throughout the Russian leader's address to those gathered in Vladivostok for the four-day event held under the motto "The Path to Partnership, Peace and Prosperity."
Far East 'Absolute Priority'
It was the situation in the global economy that stimulated Russia’s work in the region, making it an absolute priority despite its distance from the capital, Moscow.
"When you come to the Far East, you become confused… It's not clear whether it’s day, or morning, or evening. But we won’t get confused about one thing - the Far East is a priority for Russia for the entire 21st century," Putin insisted.
"We started [work on infrastructure development in the Far East] a long time ago, but in recent years, what is happening in the global economy, of course, has stimulated our work in this Far Eastern direction," stated the Russian leader.
Figures reflecting the investment dynamics in the Far East are currently three times larger than those for Russia in general, pointed out Vladimir Putin, adding that the percentage of subsoil exploration in the Far East averages only 35 percent. Accordingly, this presents vast opportunities for major growth for extractive industries. At this point in his speech, Putin instructed Russia's Cabinet of Ministers to include the exploration of subsoil resources in the Far East and Siberia in the geological exploration program.
Regarding business conditions in the Far East, they need to be constantly improved, rendered accessible and lucrative for both small and large companies, he added.
A program for the long-term development of energy capacities in the Far Eastern Federal District was of vital importance for the region, said Putin, readdressing the issue to the Cabinet of Ministers.
Putin touted the tremendous importance of projects for high-speed highways that will run through Siberia and the Far East to the Pacific Ocean, while also highlighting a comprehensive action plan for the development of the aviation complex in the Far Eastern Federal District.
The importance of expanding the logistics routes in the Far East, including the Northern Sea Route, was also emphasized.
Amid the enhanced push to strengthen Russia’s technological sovereignty, new liquefied natural gas (LNG) lines will also be developed by Russia.
"By 2030, LNG production in Russia's Arctic zone should triple (up to 64 million tons per year). In this regard, a fundamental decision was made to launch new LNG lines at the Murmansk center for work in Arctic fields. Of course, this will make a huge contribution to the development of our northern regions, to strengthening the technological sovereignty of Russia," Putin said at the EEF plenary session.
Surging Asia-Pacific Trade
It is "impossible to overestimate" the potential of Russia's partnership with the Asia-Pacific region, Vladimir Putin stated.
"Last year, Russia's trade with countries of the Asia-Pacific region increased by 13.7%, while growing by another 18.3% over the first half of this year," Putin said at the plenary session.
Russia published its new Foreign Policy Concept earlier in the year, which mirrored its shift toward the east, singling out the importance of relationships with China, India, and Southeast Asia. Recent trade data has reflected this drift. This, according to China's customs authorities, in 2022, Russia-China trade grew by 29.3 percent to a record $190.271 billion. As for Russia-China trade in January-July 2023, it grew by 36.5 percent to $134.104 billion, according to China's General Administration of Customs.
Dramatic Changes in Global Economy
Overall, amid the sanctions campaign being waged against Moscow as an inherent part of the ongoing NATO proxy war against Russia in Ukraine, more and more countries are refusing to toe the West's line as an increasingly multipolar world takes shape. Trust in the West has been undermined, Putin stressed.
In 2022, the US and its allies slapped Russia with nearly 15,000 sanctions and froze a portion of the country’s foreign reserves. Putin denounced the seizure of Russia's assets abroad as "beyond the pale."
"The seizure of legally earned assets [abroad], you know it's not my assets, it's assets of our companies, businessmen, is simply beyond the pale," Putin said at the plenary session.
Moscow has repeatedly stated that the EU's attempts to confiscate frozen Russian assets is an expropriation of property in violation of international law. Kremlin spokesman Dmitry Peskov has stated that Russia will do everything possible to return the seized assets, given the illegality of their seizure.
The global economy continues to change under the impact of current developments, Putin said.
"We know well, we see how the global economy has changed in recent years and continues to change, including due to the fact that some countries, primarily Western ones, with their own hands are destroying the system of financial, trade, economic relations, which they themselves created in many ways," Putin told the plenary session of the Eastern Economic Forum.
However, it is important to note that a growing list of countries are ready to cooperate not according to Western patterns, but for the benefit of all of humanity, Putin added. As part of these dramatic changes, restriction of payments in dollars – another of the West’s tools wielded in its sanctions war – has prompted countries to consider payments in national currencies, he underscored.
The decline of the US greenback as the currency of choice for global trade and central bank reserve holdings received a boost in 2022, when Washington and its allies attempted, and failed, to sanction Russia amid the crisis in Ukraine. It was then that Moscow and its partners responded by ramping up trade in local currencies.
Furthermore, countries are also beginning to understand the need for keeping savings outside the United States, Russian President Vladimir Putin said.
"For example, restrictions on payments in dollars. Where does this lead? Because all countries are thinking about creating their own instruments, about creating new payment systems, they are thinking about whether it is worth keeping their savings in the United States or somewhere in Europe, whether it is worth investing their savings in the securities of these countries," Putin said, adding that "trust [in those who impose these restrictions] is being undermined."
Russia, which completely expelled the dollar from its National Wealth Fund in 2021, replacing it with euros, yuan, and gold, has long been impressing upon its foreign partners to expand trade in local currencies. Moscow warned of sanctions-related risks associated with the US currency, while currency swap-based payments were touted as fraught with lower volatility.
Indeed, dedollarization has become the buzzword of late, with participants of Russia's eighth Eastern Economic Forum, also weighing in on the prospects of cutting back global reliance on the greenback. The recent BRICS Summit in Johannesburg saw bloc members voice their intention to increase the use of local currencies in trade and financial transactions. At this point it should be noted that addition of six new regional economies - Argentina, Egypt, Iran, Ethiopia, the UAE, and Saudi Arabia - to the five-nation BRICS bloc, will wee the grouping of major non-Western world economies now accounting for some 37 percent of global GDP.
Referencing the increased weaponization of the dollar, along with its heightened volatility, the Russian president voiced the belief that it is necessary to reach an agreement with businesses so that they understand that it is more reliable to work in Russia.
"Today, the logistics chains for the supply of goods have almost been restored, everything has somehow returned to normal. Well, we see that this is also connected with the exchange rate of the national currency, among other things," Putin pointed out, adding that the state and businesses should be equal partners.
Regarding the ruble exchange, the Russian President ruled out any problems despite Western sanctions.
"I don't think that there are insurmountable problems and difficulties there," Putin said, adding that all the factors that impact the exchange rate are "manageable." The decision of the Bank of Russia to raise the key rate was hailed by Putin as timely, and driven by the gola of reducing inflationary risks. Russia's Central Bank raised the key rate to 12% from 8.5% per annum to limit price stability risks on August 15.
Incidentally, the ruble’s share in payments for Russian exports recently topped 50 percent, accounting for more than a third of Russia's overall foreign trade, according to acting Federal Customs Service chief Ruslan Davydov.
"In the structure of our trade turnover, the ruble’s share is growing very strongly, of course. For example, in exports, over half of payments are in rubles. In imports, payments are still made mainly using the currencies of unfriendly countries; in general, ruble payments account for more than a third of overall trade turnover," Davydov told Sputnik on the sidelines of the Eastern Economic Forum in Vladivostok.
11 September 2023, 12:53 GMT
'New Physical Principles' Weapons
Amid rising global tensions, Russia is working on weapons based on new physical principles, stated Vladimir Putin at the forum. Such weapons will ensure securityfor Russia in the near historic perspective, underscored the Russian President.
"If one looks into the security sphere, new physical principles weapons will ensure the security of any country in the near historic perspective. We understand this very well and are working on it, Putin said.
Developing such weapons, such laser, ultrasonic, radio-frequency arms and others, will be rooted in novel technologies, along with new principles of action.
11 September 2023, 18:27 GMT
‘Rotten US Political System’
Attacks against Russia in all directions is a continuation of the global confrontation initiated by the West, Russian President Vladimir Putin said in a discussion with the moderator following his speech at the EEF.
"Everything that is related to relations between Russia and the West is connected to geopolitical interests of Western countries. And attacks on all directions, including in culture, are continuation of this geopolitical confrontation," Putin said.
Moving on to the issue of the 2024 presidential election in the United States, Russia’s leader was of the opinion that they will not change in Washington’s policy towards Moscow.
“I think that there will be no fundamental changes in the Russian direction in US foreign policy, no matter who is elected president,” Putin said, adding that Moscow is not aware who will be elected, in a nod at the since-debunked claims of the Trump-Russia collusion ahead of 2016 elections.
The Russian President also said that accusations against ex-President Donald Trump regarding his alleged “ties” with Moscow are “complete nonsense.”
“As for the prosecution of Trump... for us, what is happening in today’s conditions, in my opinion, is good, because it shows how rotten the American political system is …All that's happening with Trump is political persecution of a political rival,” Putin said.
12 September 2023, 08:18 GMT
Ukraine’s Failed Counteroffensive & Foiled Terror Attack
Vladimir Putin spoke of Ukraine’s faltering counteroffensive on Tuesday, clarifying that Kiev’s military casualties in the special military operation zone amount to 71,000.
"Ukraine is conducting a so-called counteroffensive. But there are no results …failure, not [just a] failure... There are losses, huge losses. Since the beginning of the counteroffensive, the loss of personnel is 71,000 people," Putin said, adding that Ukraine lost 543 tanks and some 18,000 armored vehicles during the effort to advance.
Regarding Ukrainian President Volodymyr Zelensky’s law banning Kiev-Moscow negotiations, Putin said that everything might change if Washington makes such decisions, in a reference to the Western 'puppet-masters' directing the regime in Kiev.
Furthermore, a Ukrainian sabotage group, which aimed to blow up power lines in Russia and were captured, admitted that they were trained by the instructors from the United Kingdom, Putin said.
“During the clash, the FSB [Russia’s Federal Security Service] captured several people, [some] were destroyed, the rest were taken prisoner, it turned out that this was a sabotage group of the Ukrainian special services. Interrogations are ongoing, which show that their task was to cause damage to one of our nuclear power plants, to blow up power lines in order to ultimately disrupt the operation of the power plant. This is not their first attempt,” Russia's President stated.
Referring to the fact that that Ukrainian saboteurs have admitted that they were trained by UK instructors, Vladimir Putin added:
“Do they even understand what they are playing with or not? Why are they provoking us to take some kind of retaliatory action against Ukrainian nuclear facilities, nuclear power plants?”
11 September 2023, 18:35 GMT
'Economic Transport Corridor'
The Russian President also weighed in on the new economic corridor in Eurasia that Saudi Arabia, the United States, the European Union and some other countries agreed upon. The plan to link India, the Middle East and Europe via a network of railways and ports, was revealed during the G20 summit in India.
"I believe that this is to our benefit, it will only help us develop logistics ... True, the Americans jumped on this train at the last moment, but I do not see much point for them in being in this project at all ... Meanwhile, the additional movement of goods through this corridor is essentially an addition to our North-South project. We do not see anything here that could somehow interfere with us," the Russian leader said at the plenary session.
Russia, according to Vladimir Putin, should be self-sufficient, true, but in no way does this spell “isolation”.
"Our country must be self-sufficient, including in the field of security and defense. But this does not mean isolation of the country. This means that we, in cooperation with our partners and friends, in integration with the vast majority of countries that represent the majority of the country’s population, will develop our own country and make it even stronger," Putin told those attending the plenary session of the EEF.
