Eastern Economic Forum Plenary Session Transcript Part One
Here's the machine translation of today's EEF Plenary Session which includes Putin's speech. Yes, there're some glitches in the translation as usual, so be diligent as you read. I just noted that the transcript won't completely fit on one page, so I'll need to add a Part Two. The link to the video is way down toward the bottom of this page where it says Plenary Session. It has an automatic English translation and is 3:38 in length.
Igor Doronov: Good afternoon, everyone. Good afternoon!
We are very glad that you have come here. The typhoon did not prevent us at all, although, of course, not everywhere now there is a cloudless sky, nevertheless it is great that we are all gathered.
As I was preparing for the moderation of this plenary session, I naturally watched the previous plenary sessions and realized one amazing thing that really surprised me so much: imagine, in 2019, the pre-Covid year, there were fewer plenary participants than there are now. Now we have five people here on stage and three more video messages. And also for reference, so that they understand that those people who are on stage, and those people who sent their video messages, represent the interests of more than three billion people.
Nevertheless, we are all well aware that the world has changed, and the world of 2022 is not the world of 2021. If earlier we talked about the pandemic, about the coronavirus, now we are talking about the fighting in Ukraine, we are talking about the global economic crisis that is coming. It turns out that in many countries that are not completely accustomed to this, double-digit inflation has taken place, somewhere there has been a change of government. Some states are preparing for an energy crisis, other states are preparing for an economic crisis.
And for Russia, the world is divided into friendly and unfriendly states. And it so happened that there are now much more friendly states in the East for us, which is why the role of the Far East is now increasing. We should probably reconsider it. The Far East is such a gateway in Russia now for all Eastern countries. And today we will discuss whether the region is ready for rapid changes on the way – as we call the forum – on the way to a multipolar world.
Therefore, I once again want to greet everyone who is in the hall, I want to greet everyone who is on the stage: sayn baina uu, min gla ba, barev zes, nihao and hello!
Mr President, you have the first word.
President of Russia Vladimir Putin: Guests, Dear Mr. Min Aung Hlaing, Dear Mr. Pashinyan, Dear Mr. Oyun-Erdene, Dear Mr. Li Zhanshu, Ladies and gentlemen,
I would like to welcome all participants and guests of the Eastern Economic Forum. Russia, Vladivostok again receive leading businessmen, experts, politicians, public figures and representatives of authorities from dozens of countries.
The Prime Minister of India, Mr. Narendra Modi, the Prime Minister of Malaysia, Mr. Ismail Sabri Jacob, and the Prime Minister of Vietnam, Mr. Pham Minh Tinh, sent their video messages. I am glad that they found an opportunity to participate in the work of the plenary session.
By tradition, the Eastern Forum discusses projects and initiatives that are of great importance for the development of the Far Eastern regions of our country, for strengthening Russia's cooperation and production ties with the countries of the Asia-Pacific region – both with our long-standing, traditional partners, and with those states that are still establishing a dialogue with Russia in a wide range of areas and business projects.
And, of course, the meeting in Vladivostok is a good opportunity to once again assess the situation in the global economy and exchange views on its main trends and main risks.
Last year, the Eastern Economic Forum was held after a forced pause due to the coronavirus epidemic. Then most experts agreed that business life in the world began to recover and with the lifting of Covid restrictions, it would soon return to normal. However, the epidemic has been replaced by other challenges, also of a global nature, that pose a threat to the whole world. I am referring to the West's sanctions fever and its blatant and aggressive attempts to impose behaviour on other countries, deprive them of their sovereignty and subordinate them to their will. Strictly speaking, there is nothing unusual in this, this is a policy that has been pursued by the "collective West" for decades.
The catalyst for these processes was the elusive dominance of the United States of America in the global economy and politics, as well as the stubborn unwillingness or even inability of Western elites to see and recognize objective facts.
I have already said that irreversible, one might say, tectonic changes have taken place in the entire system of international relations recently. The role of dynamic, promising states and regions of the world, and above all, of course, of the Asia-Pacific region, has increased significantly. His countries became new centers of economic and technological growth, points of attraction for personnel, capital, and production.
Despite this, Western countries strive to preserve the old world order, which is beneficial only to them, to force everyone to live by the notorious "rules" that they themselves invented, themselves and regularly violate, constantly changing for themselves, depending on the current situation. At the same time, the reluctance of other countries to obey such a dictate and arbitrariness forces the Western elites, simply put, to break down, to make short-sighted, adventurous decisions – both from the point of view of world security, politics, and from the point of view of the economy. All these decisions run counter to the interests of countries and peoples – by the way, including citizens of Western states themselves. The separation of Western elites from the interests of their own citizens is increasing.
Thus, the achieved level of industrial development in Europe, the quality of life of people, socio-economic stability – all this is thrown into the furnace of the sanctions furnace, spent at the behest of Washington in the name of the notorious "Euro-Atlantic unity", and in fact is sacrificed for the sake of preserving the dictatorship of the United States in world affairs.
Back in the spring, many foreign corporations raced to announce their withdrawal from Russia, believing that it was our country that would suffer from this more than others. But now we see how one by one production and jobs are closed in Europe itself. And one of the key reasons is, of course, the severance of business ties with Russia.
The competitiveness of European enterprises is declining, because the EU authorities themselves actually deprive them of available raw materials, energy resources and markets. And it is not surprising if, as a result, the niche of European business, both on the continent and in the global market as a whole, and as a result, will be occupied by their American patrons – they, pursuing their interests, never limit themselves in anything and do not hesitate to achieve their goals.
In addition, in an attempt to counter the course of history, Western countries have undermined the key pillars of the world economic system, which has been built for centuries. Before our eyes, confidence in the dollar, the euro and the pound sterling as currencies in which it is possible to conduct settlements, store reserves, denominate assets has been lost, and we are step by step moving away from using such unreliable, compromised currencies. By the way, even the allies of the United States are gradually reducing their dollar holdings, as can be seen from the statistics. Gradually, but the volume of settlements decreases in dollars, and savings are decreasing.
I would like to note here that yesterday Gazprom and its Chinese partners decided to switch to the ruble and the yuan in the proportion of "fifty to fifty" when paying for gas supplies.
I would like to add that the short-sighted actions of the Western authorities have spurred global inflation: it has already updated long-term records in developed economies.
Everyone knows, but I will repeat: in July, inflation in the United States was 8.5 percent [The USG supplied figure; the actual amount is twice that]. We now have about 14 percent [percent], I will talk about this later, but the trend, unlike western economies, is downward. Inflation is on the rise there, and ours is on the decline. I think that according to the results of the year, we will have about 12 percent, and, according to many of our experts, in the first quarter – by the second quarter of next year, we will most likely reach the targets. Someone says that 5-6, and someone says that the level of four percent will be reached. See. In any case, the trends in this sense are positive. And what's going on in our neighbors? In Germany – 7.9 percent today, in Belgium – 9.9 percent, in Holland – 12 percent, in Latvia – 20.8 percent inflation, in Lithuania – 21.1 percent, in Estonia – 25.2 percent. And the upward trend.
Rising prices in global markets can be a real tragedy for most of the poorest countries, which face shortages of food, energy, and other vital goods. I will name the figures that emphasize the danger of the problem: if in 2019, according to the UN, 135 million people in the world experienced an acute shortage of food, now their number has increased by two and a half times and amounts to 345 million people – terribly simple. Moreover, the poorest states completely lose access to the most important food products, as the purchase by developed countries provokes a sharp increase in prices.
Let me give you an example. Most of the ships – you all know very well how many copies were broken, how many were said about the need to ensure the export of Ukrainian grain at all costs to support the poorest countries. And we, of course, could not but answer this, despite all the difficulties of the events taking place around Ukraine. We did everything to ensure that Ukrainian grain was exported, and, of course, we proceeded from the fact that I met with the leaders of the African Union, with the leaders of African states and promised them that we would do everything to ensure their interests, and we would facilitate the export of Ukrainian grain.
We did it together with Turkey. Did. Colleagues, if we exclude Turkey as an intermediary country, almost all the grain exported from Ukraine is directed not to the developing and poorest countries, but to the EU countries. Under the UN World Food Programme, which is precisely what it is supposed to help the most needy countries, only two ships were loaded – I emphasize – only two out of 87, and 60,000 tons of food out of two million tons were taken out of them. That's just three percent, which goes to developing countries.
I want to say that like many European countries in previous decades and centuries acted as colonizers, so they continue to operate today. Once again, developing countries have simply been deceived and continue to cheat.
It is obvious that with this approach, the scale of food problems in the world will only increase – unfortunately, to our great regret – which can lead to an unprecedented humanitarian catastrophe, and, perhaps, it is worth thinking about limiting the directions of export of grain and other food along this route. I will certainly consult with the President of Turkey, Mr. Erdogan, after all, it was we who worked out a mechanism for the export of Ukrainian grain, first of all, I repeat, in order to help the poorest countries. And what happens in practice?
I would like to stress once again that this situation has been caused by the reckless steps taken by the United States, Britain and the European Union, which are obsessed with illusory political ideas, and the well-being of their own citizens, and even more so people outside the so-called golden billion, they are pushing them into the background, which will inevitably lead Western countries into a deadlock in the economic and social crisis, and will have unpredictable consequences for the whole world.
Dear colleagues!
Russia is coping with the economic, financial and technological aggression of the West. I'm talking about aggression, there's no other way to call it. Russia's foreign exchange and financial markets have been stabilised, inflation is decreasing, as I have already said, and the unemployment rate is at a historic low of less than four percent. Estimates and forecasts of economic dynamics, including on the part of entrepreneurs, are now much more optimistic than they were in early spring.
What I would like to note is that, yes, the overall economic situation has stabilised, but, of course, we also see problems in a number of industries and regions, at individual enterprises in the country, especially those that were tied to supplies from Europe or supplied their products there.
It is important, together with the business, to continue to make operational decisions and launch effective targeted support mechanisms. I ask the Government Commission to Improve the Resilience of the Russian Economy to keep this issue under constant review. True, we are doing this almost every day. Nevertheless, despite the well-known elements of stabilization, which I have just mentioned, we understand the risks, and we constantly need to keep them in the field of our attention.
Russia is a sovereign state. We will always protect our national interests by pursuing an independent policy, and we value these same qualities in partners who for many years have demonstrated reliability and responsibility in the course of trade, investment and other cooperation. I am referring, of course, to our colleagues from the Asia-Pacific region.
The absolute majority of Asia-Pacific states do not accept the destructive logic of sanctions. Here, in the center of business relations are the principles of mutual benefit, cooperation, the development of the potentials of economies for the benefit of the citizens of our countries. And this is a huge competitive advantage of the region, the key to its dynamic, long-term development, the pace of which for a long time steadily exceeds the global average.
Nevertheless, I would like to remind you that over the past ten years, Asia's GDP has grown annually by about five percent, while the global GDP has grown by about five percent, the US by two percent, and the EU by 1.2 percent. But that's not even what matters. Importantly, this trend continues. What will this inevitably lead to? As a result, the share of Asian economies in global GDP will grow and grow from 37.1 percent in 2015 to 45 percent in 2027, and this trend will certainly continue.
For Russia, it is important that, along with the economies of the Asia-Pacific region, the economy of the Far East of our country grows, that in this region there are modern conditions for people's lives, their incomes grow, well-being increases, high-quality jobs and efficient production are created.
In the Far East, tax, administrative and customs preferences that are unique for our country have already been tested. With their help, landmark – even by world standards landmark – projects are being implemented in such areas as gas chemistry and shipbuilding, biotechnology and clean energy.
Over the past seven years, industrial production in the Far East has grown by about a quarter, which is a third higher than in the country as a whole. I would like to emphasise this: the growth rate of industrial production in the Far East is confidently exceeding the growth rate of industrial production in the country as a whole.
We will continue to stimulate the advanced development of the Far Eastern regions, using new, advanced measures of state support, creating better, globally competitive conditions for doing business. In particular, we intend to fine-tune the mechanism of priority development areas for modern and joint projects with other countries, create the most favorable business climate to attract the most modern technologies to Russia and produce products with high added value in the Far East.
At the same time, the events of this year confirmed the special importance of such a factor as the availability of raw materials, without which it is impossible to organize any production, to establish cooperation chains. Russia is perhaps the only country in the world that is able to fully provide itself with natural resources, and the Far East plays a significant role here. Oil and natural gas, coal, metals, timber, aquatic biological resources – in all these respects, the region is the most important supplier both to the domestic market and to our foreign partners.
We rely on the diligent, masterfully intelligent development of Russia's natural resources on the basis of the most stringent environmental standards. And we will primarily use the extracted raw materials for deep redistribution within the country, to strengthen the sovereignty of our country, ensure industrial security, increase the incomes of citizens and develop the regions.
We have already protected the sphere of extraction of raw materials from unfriendly actions, now only a company in the Russian jurisdiction has the right to develop our natural resources.
The Ministry of Natural Resources, together with the Ministry of Industry and Trade and leading business associations, identified the needs of the national economy in strategic raw materials. This information will form the basis of the updated Strategy for the Development of the Mineral Resource Base of Russia with an increased planning horizon until 2050.
At the same time, special attention should be paid to geological exploration and processing of scarce raw materials (for example, titanium, manganese, lithium, niobium), which is used in metallurgy, medical and chemical industries, microelectronics, aircraft construction and other industries, in new technologies for energy storage and transmission.
Separately, I ask the Government to look at the situation in the production of biological resources, where we have a mechanism of investment quotas. Here it is important to achieve balanced growth, full utilization of production capacities, as well as to ensure the harmonious development of the infrastructure of the regions.
I want to emphasize that the funds that the state receives from the use of aquatic biological resources should be used as a matter of priority to develop the infrastructure of rural areas, to support employment, and to increase the incomes of local citizens. I ask the Government to take specific measures in this regard. We have discussed this many times.
Further. In recent years, Russia has implemented big plans for the development of transport infrastructure, railways and roads, seaports and pipelines. These timely decisions allowed business in today's conditions to quickly rebuild logistics, to deploy cargo flows to those countries that are ready and willing to trade with our country, prefer civilized, predictable business relations.
An indicative fact is that despite attempts at external pressure, the total cargo turnover of Russian seaports for seven months of this year practically did not decrease, remained at the same level as a year earlier – it is about 482 million tons of cargo. Last year there were 483 – almost the same thing.
At the same time, here, in the Far Eastern ports, there is a real logistics boom. The volume of cargo transshipment, container handling is such that specialists work without interruption on weekends, day and night. In short, no matter how much someone would like to isolate Russia, it is impossible to do this, as we have always said. Just look at the map.
Using our natural competitive advantages, we will continue to increase our transport potential, expand the network of roads and railways, build new approaches to marine terminals and increase their capacity.
The focus, as I have already said, today is undoubtedly on the eastern direction of the infrastructure, as well as the development of the North-South international corridor and the ports of the Azov-Black Sea basin – we also do not intend to forget this – which will open up new opportunities for Russian companies to enter the markets of Iran, India, the countries of the Middle East, Africa and, of course, for reciprocal supplies from these countries.
In general, on the horizon of 2030, the total volume of cargo transportation along these routes and arteries can grow by about 60 percent. We assess these opportunities absolutely realistically, and so it will be. To reach these values, the Government has prepared substantive roadmaps in three areas, as I have already outlined them, which will make it possible to organise the work systematically, to link together, to connect the "delimitation" of bottlenecks, the modernisation of border checkpoints and related infrastructure.
Along with the plans for the development of transport corridors, it is important to update the rolling and traction staff of domestic railways, to load Russian shipyards with orders for modern, high-quality tankers, bulk carriers and container ships, including ice-class ones, for the further development of the Northern Sea Route as a powerful transport artery of national and global international importance, I emphasize, with year-round navigation. The modern icebreakers that we design and build allow us to do this right now.
This year, the first container flight between Murmansk and Kamchatka took place on the Northern Sea Route. He once again confirmed the reliability of escorting vessels in the Arctic zone, its safety.
However, I would like to note that it is not only a matter of allowing the passage of ships in the Arctic or simply connecting the two endpoints with each other. It is necessary to make sure that in each port on the route the vessels are serviced and cargo is handled, and the schedule of movement is rhythmic and predictable, reliable. In this case, all points of the route and all regions of the Northern Sea Route will benefit from the work of the logistics corridor. That is what we should strive for.
The government has already approved a plan for the development of the Northern Sea Route until 2035. It is planned to allocate 1.8 trillion rubles from various sources for its implementation. According to the forecast, the cargo flow of this corridor could grow from the current 35 million tons to the target of 220 million tons [per year].
Of course, the key issue is the cargo base both for transportation from the Far East and in the opposite direction. To do this, it is necessary to offer an economically justified, competitive tariff. I ask the Government to carefully study all these issues.
A special topic for the Far East is aviation. It is important not only the availability of flights from the European part of Russia, but also the connectivity of the Far Eastern regions themselves with each other, the coverage of as many destinations, cities and regions of the Far East as possible by air traffic.
That is why we created a single Far Eastern airline. Today, there are almost 390 routes in its schedule, some of which are subsidized by the state. In the next three years, the volume of traffic of a single Far Eastern airline should increase, the number of routes will exceed 530. And we see from the fact that what is happening now in practice after the introduction of these routes that they are in great demand.
Under these plans, it is necessary to expand the company's fleet, to equip it with modern aircraft, including small aircraft. A decision has been made in this regard, and I ask the Government to strictly implement it.
I would like to note that in general, the Russian air transportation industry expects a systemic re-equipment. Our airlines, including Aeroflot, have formed the largest order package in modern history for about 500 domestically produced long-haul aircraft. By the way, the agreement between the United Aircraft Corporation and Aeroflot, as far as I know, was signed on the sidelines of the current Eastern Economic Forum, and the figures there are impressive – over a trillion, I think.
Such demand should become a powerful incentive for aircraft factories and design bureaus, for many related industries, including electronics and the production of aircraft components, and, of course, for the training system for professional personnel, engineers, skilled workers in the aviation industry.
I would like to add here that a decision has been made on another sensitive issue for the Far East. I am referring to the development of air ambulances and increasing the availability of medical care for residents in remote areas. Starting next year, we will more than double federal funding for these purposes, which means that the number of flights will also increase, and medical care in the region will be provided faster and better.
Dear friends and colleagues!
All our decisions in the economy, the social sphere, all the mechanisms that we implement in the Far East are aimed at the main thing – that this region becomes a truly attractive place for life, study, work, so that new families are created here, more children are born.
Several important initiatives in this regard have been included in the package of measures that the Government is considering. Among them is the creation of a modern environment for life, the improvement of settlements.
Let me remind you that at the last forum the task was set to develop master plans for the development of the largest Far Eastern cities. These are all the administrative centres of the constituent entities of the Federation and cities with a population of over 50,000 people, as well as Tynda and Severobaikalsk, key points on the Baikal-Amur Mainline.
We are talking about an integrated approach to the development of settlements, where plans for the modernization of infrastructure, the social sphere, the creation of public spaces and so on are combined competently and conveniently for people, and projects in the field of economy and industry are based on calculated business models.
For all cities, work began with the preparation of strategic development plans. In parallel, master plans are already being actively developed on their basis in 17 cities and agglomerations. One of them is the development of the Petropavlovsk-Kamchatka agglomeration, and the day before yesterday we discussed this issue with our colleagues on the spot. Once again, I ask the Government to provide maximum assistance in implementing this and other master plans in order to unconditionally implement them.
Here, among other things, it is important to use the tools of the Far Eastern concession, infrastructure budget loans and infrastructure bonds. For these programs, it is necessary to determine target limits for the Far East. The funds should be used for the development of the urban area, improvement and, of course, for infrastructure support, including the renewal of existing networks and communications.
I would like to add that at the recent St Petersburg Economic Forum, I instructed to allocate an additional ten billion rubles annually for projects for the improvement of Russian cities. I think it is right that half of these funds, that is, five billion a year, are additionally used to upgrade Far Eastern settlements with a population of up to 250,000 people.
Also, within the framework of all our main infrastructure development programmes, separate resources should be allocated for projects to modernise Far Eastern cities. I have already given such an instruction, and I ask you to ensure its implementation as quickly as possible. Target limits should be fixed in the federal budget for the next three years.
What else would you like to emphasize? It is necessary to increase the volume of housing construction in the Far East, while widely applying advanced, "green", energy-efficient construction technologies.
This year, the Far Eastern Quarters program was launched. Within its framework, developers will be able to use the advantages of priority development areas, including tax and infrastructure benefits, which will reduce the cost of apartments and the price of finished housing, which means increasing the availability of housing for citizens. With the help of this mechanism, it is planned to put into operation about 2.5 million square meters by 2030. I ask the regional authorities and the Ministry of the Far East to hold the first tenders by the end of the year, select developers and start designing and building residential buildings.
Further. For the Far Easterners, there are special, preferential mortgage conditions. With the help of a loan at a rate of two percent, 48,000 families have already purchased new housing. This year, we have expanded the Far Eastern mortgage programme: now it can be obtained not only by young Far Easterners, but also by doctors and teachers, regardless of age.
Let me remind you that the program is designed until 2024. And given the demand and efficiency – and this programme is working effectively – I propose extending it at least until 2030. I hope that the Far Easterners will also appreciate this.
(Applause.)
A separate decision concerns the support of young professionals who come to the Far East or graduate from educational institutions here, get a job and look for their own housing. 10 thousand rental apartments will be built for them. The rental rate will be significantly lower than the market rate due to subsidies from the regional and federal budgets. The Government has already envisaged such a measure. I ask you to work out all the details in order to start building rental housing for young professionals without delay. And I would like to draw your attention to the fact that the location of this housing should be linked to the development of Far Eastern cities, so that all the necessary infrastructure is available, if we simply say that such housing is in demand, so that it is convenient to live there.
I would like to note that the Far Eastern regions, like many other regions of the Russian Federation, are experiencing a shortage of workers today. To intensify the training of personnel in key competencies, we will also take several important steps. So, until 2030, over 900 modern workshops will be opened in Far Eastern colleges, in the near future, until the end of 2025, we will launch 29 production and educational clusters. In addition, when hiring young workers, the business will receive compensation for their employment.
A separate area is improving the quality of higher education in the Far East. The task is to attract qualified teachers here, strengthen the material and technical base of higher education, stimulate regional university science and promising developments in the most important areas of the technological agenda with grants.
Network programs of Far Eastern universities are being implemented. These programs connect educational institutions of the region with the leading universities of the country, such as St. Petersburg State Marine Technical University, Moscow Aviation Institute and others. We will certainly support this area of cooperation.
Finally, in order to train cultural and art workers in 2025, branches of GITIS, VGIK, and the Shchukin School will be opened in the Far East. I also ask the Government to provide all the necessary assistance here.
I would like to note that the regions of the Far East offer their initiatives to develop professional careers. So, with the support of the Agency for Strategic Initiatives in the Sakhalin Region, a pilot project "Let's Work Together" will start, within the framework of which participants will be able to undergo free additional training and career guidance, get help in starting their own business. Based on the results of the pilot project, we will think about replicating it.
I would also like to mention the training programme for a new generation of Far Eastern managers, where emphasis is placed on educating local personnel, on combining educational programmes and internships in public authorities and development institutions. The programme has already been launched, and I ask the heads of all regions of the Far Eastern Federal District to take an active part in it.
Colleagues, in conclusion, I would like to stress once again. The modern global economy and the entire system of international relations are going through a difficult period, but I am confident that the logic of cooperation, conjugation of potentials and mutual benefit adhered to by our countries and our friends in the region represented here will certainly prevail. The reasonable use of the strengths and competitive advantages of the Asia-Pacific countries and the constructive partnership will open up new tremendous opportunities for our peoples. We are ready to work together for a successful future and are grateful to our partners for taking part in this work.
Thank you for your attention.
Igor Doronov: Mr President, thank you very much.
Did it seem to me or did I really not hear a single word about Ukraine in your speech?
Vladimir Putin: Does this country belong to the Asia-Pacific region? I don't think so. And here we are discussing issues primarily in the region, which is located in the Far East of the Russian Federation. But if you are interested in questions related to the situation in this area, I will be ready to answer your questions.
Igor Doronov: Yes, of course, the situation is worrying, because we are here – I calculated on purpose – about seven thousand kilometres from the combat zone. But the impact of what is happening there is also felt here, including in the Far East.
Vladimir Putin: I see.
Igor Doronov: The impact can probably be divided into economic – we have seen that the usual way of life [is changing] when we had banking systems, automakers, other manufacturers, and they just took and left Russia – and there is a moral aspect, when families quarrel among themselves, when relatives on different sides of the border stop communicating and so on.
I have a question: as for our country, since the beginning of this year, since February 24, what have we gained and what have we lost as a state, in your opinion?
Vladimir Putin: I think I am sure that we have not lost anything and we will not lose anything. From the point of view of acquisitions, I can say that the main acquisition is the strengthening of our sovereignty, and this is an inevitable result of what is happening now.
Yes, of course, there is a certain polarization – both in the world and within the country. I believe that this will only benefit, because everything unnecessary, harmful and everything that prevents us from moving forward will be rejected. We will gain momentum, the pace of development, because modern development can only be based on sovereignty. All our steps in this direction are aimed at strengthening sovereignty. That's the first thing.
Second, and most importantly – I want to emphasise this again, this is often heard, I see it, I want to emphasise that this is an absolutely correct thesis – we did not start anything in terms of military operations, but are only trying to finish it.
Military operations began in 2014 after the coup d'état in Ukraine by those who did not want normal peaceful development and sought to suppress their own people, conducting one military operation after another and subjecting the people living in the Donbas to genocide for eight years.
Russia made the decision, after repeated attempts to resolve this issue peacefully, in the same way, mirroring how our potential adversary acted – by armed means. We did this consciously, all our actions are aimed at helping people who live in Donbass. This is our duty, and we will fulfill it to the end. Ultimately, this will lead to the strengthening of our country– both from within and its foreign policy positions.
Igor Doronov: Thank you very much.
Now we will have a second speech. I would like to give the floor to Chairman of the State Administrative Council, Prime Minister of the Interim Government, Commander-in-Chief of the Armed Forces of the Republic of Myanmar Min Aung Hlaing.
You are welcome.
Min Aung Hlaing (retranslated): President of the Russian Federation!
Dear representatives of the Russian Federation, Dear foreign guests!
First of all, it is with great pleasure that I would like to express my warmest wishes. I want to say that I am very happy and proud to be speaking at the world-famous Eastern Economic Forum for the first time.
Dear guests! Ladies and gentlemen,
Food security is of paramount importance to all of the world's humanity because food and water generate the energy needed for humans. For decades, industrial safety has been interpreted as an opportunity to ensure the safety of a particular country and as an opportunity to open production facilities in it in order to meet the needs of all its inhabitants. Food security has now changed its meaning along with the ongoing change in trade and international food production, in particular for countries with low food production that purchase the necessary food from other markets.
During the procurement of fuels, lubricants and ancillary materials, including fertilizers needed for agricultural use, some countries use the dollar, which is directly linked to financial security, as a weapon. Major powers apply a policy of dollar intimidation against small countries.
In my opinion, in world trade, you can use currencies such as rubles, yuan and rupees. In addition, a system of direct exchange of goods can also replace the dollar. If we do, small countries will be able to overcome financial difficulties. Therefore, we want to seek comprehensive help from friends with high GDP.
The food security of certain countries could be fully ensured by providing enough food, access to affordable as well as healthy food.
A home country is considered food-protected if its inhabitants have unhindered access to the necessary food at affordable prices.
However, various factors present challenges to food security. These include population growth, increased demand and changing food prices, the disappearance or scarcity of various agricultural plants, climate change, water scarcity, limited access to land for agriculture, food loss for various reasons, and food waste.
The world's population has increased in recent years, and people's life expectancy has increased. The world's population is expected to reach 8 billion by November 2022, according to the data, and reach 8.5 billion by 2030. Therefore, the solution should focus on food first. At the same time, the growing population and the demand for food increases proportionally.
Distinguished guests, ladies and gentlemen!
Myanmar is located in the region of Southeast Asia, is located in a geographically important zone where it connects two oceans. The region serves as a bridge from the Indian Ocean to the Pacific Ocean. In addition, ASEAN member countries play a significant role in the global environment in the region and its stability, as well as present many opportunities for economic development.
More than 660 million people live in ten countries in ASEAN countries. In 2020, the region produced 191 million tons of rice, 45 million tons of maize, 144 million tons of sugarcane.
ASEAN is an intermediary in the global manufacturing security sector, producing more of the food needed, exporting to domestic markets and other countries.
In 2020, the trade volume of ASEAN countries amounted to almost 20.6 trillion US dollars, while domestic trade of the ASEAN region is 550 billion, and external trade is 2 trillion. As you can see, the external volume of trade is much larger than the domestic one.
The ASEAN region has a total of 139 million hectares of profitable land, of which more than 94 million hectares are devoted to the cultivation of major crops.
Distinguished guests, ladies and gentlemen!
Myanmar is a country rich in natural resources, an agricultural sector such as profitable land, forest lands, rivers, lakes and sea coasts. The country has more than 15 million hectares of cultivated land, which gives the main items of agricultural exports: rice, legumes and corn. In addition, the irrigated land mainly cultivates rice, various types of legumes and corn, rubber and cotton. To ensure the production of food products requires abundant use of various types of fertilizers in full. For Myanmar, the priority is the cultivation of agriculture, we provide a quick result.
Distinguished guests, ladies and gentlemen!
Myanmar's oil and natural gas sector has 51 oil blocks on land and offshore. We produce gas, which is supplied to the domestic market and for export. In the Bay of Bengal, natural gas reserves of 2 trillion cubic feet have been discovered. Its production development has recently begun.
A gas field has been discovered, significantly increasing the existing good production prospects. In this regard, in the next three years, gas production will become the main industry. I want to invite interested businessmen to take part in investments in its development. In addition, there are many unexplored sources of copper, tin and cast iron in Myanmar.
Myanmar exports agricultural and marine products to the Russian Federation, and plans to import fertilizers, fuel and petroleum products from Russia. If bilateral cooperation in the import and export sector increases, the mutual benefit of Russia and Myanmar will also increase significantly.
I want to appeal to all those present at this forum, to businessmen and invite them to invest in various sectors of the Myanmar economy, such as oil, natural gas, agriculture, livestock, food production, energy, tourism, development of fuel storage facilities and other infrastructure, industrial rubber production, science and technology, information technology, healthcare, financial sector.
Myanmar provides many additional opportunities for the foreign trade sector. Such a platform for cooperation as the Eastern Economic Forum, which is currently being held, strengthens the relations of the partner countries of the Eurasian region. The Partnership in Trade and Investment will promote dialogue between Eastern countries as opposed to Western influence in the international arena.
Strengthening relations between Asian countries create an international North-South transport corridor. Strong trade and investment increase geopolitical stability in the Asia-Pacific region.
We firmly believe that the establishment of strong ties between strong centers, such as the regions of Asia, India, China, ASEAN and Russia, will help the development of Asian countries, including Myanmar.
Distinguished guests, ladies and gentlemen!
The Asia-Pacific region is today a continuously developing region, ready for investment projects. ASEAN plays a very important role in the Asia-Pacific region. Here, the ties of conducting business negotiations need diplomatic development.
Moreover, the importance of ASEAN's central position is clearly manifested in the rivalry with the superpowers, as well as in the critical role of military and economic policies due to the global trade routes passing through the South-East Asian region.
I believe that it is necessary to find one nearest land route from the countries of the region to the central part of the territory of Russia and one route of sea communication through the region of South Asia, the Persian Gulf and Central Asia. It can be combined with China's Belt and Road Initiative.
Myanmar, a member of ASEAN, is geographically a trade hub between the countries of the South-East and South regions of Asia and has a key location between Eastern Europe and East Asia. It is necessary to find the nearest profitable land route to Russia.
In addition, I would like to assure you that the necessary laws in the field of foreign investment are designed to facilitate the activities of foreign investors. Thus, when foreign investors come to Myanmar, they enjoy significant benefits for easy and fast exports to various countries.
In conclusion, I would like to invite you to invest in Myanmar. Thank you very much.
Igor Doronov: Thank you very much, Mr Prime Minister.
My question is immediately on the heels of your speech, and it will hide a few questions at once, so to speak.
First. You say: invest in Myanmar. Now, in this hall, there are a lot of people who make decisions, including investments. What guarantees can you give for Russian business? Why should Russian businesses come to Myanmar?
And that's where the second question comes from. With the new government of Myanmar, not all states now want to deal, to talk. How do you manage to live in this environment, how does the country manage to survive and exist?
And how much do you see the danger in the energy and food crisis for Myanmar?
Thank you.
Min Aung Hlaing: As I said in my speech, I invited people to invest in Myanmar in many sectors. I have already voiced these sectors. The Government of the Republic of the Union of Myanmar fully guarantees for investments.
Our delegation includes responsible people, ministers of various ministries. They are also ready to take part in the negotiations of Russian businessmen.
In our country, we accept investments according to the legislation. At the moment, this is developing in the country in accordance with the Constitution and legislation. We are preparing for the development of the country. Myanmar guarantees all conditions for investors.
Igor Doronov: Thank you very much.
Mr President, during his speech, the Prime Minister said that it is necessary to find both land routes and sea routes. Myanmar is very eager to import our fertilizers. But I will now ask on the news, on the very grain deal that was concluded in the summer.
It turns out that we have agreed and made concessions, and it turns out that we ourselves, firstly, cannot export. And secondly, only two ships with grain went to Africa. Our Permanent Representative to the UN said today that perhaps Russia will even think about whether to continue this deal or not. The end of the deal should come in November.
Vladimir Putin: What do you mean by the deal?
Igor Doronov: The grain deal, when we agreed in Turkey with Ukraine that we were exporting grain.
Vladimir Putin: Formally, sanctions have been lifted on our fertilizers, as well as on food, but in fact there are restrictions. This is such a cleverly made and complicated situation, when it seems that there are no direct sanctions against our products, but there are restrictions related to logistics, to the charter of ships, to the wiring of money, to insurance. Many of these elements of restrictions remain, although, to the credit of the efforts of the UN Secretary-General and the organization as a whole, as far as freight is concerned, many restrictions are lifted, despite the fact that the ports through which we ship are under sanctions. Nevertheless, this segment is being taken out from under them, and ships are already coming to us, that is, the situation is changing for the better.
But certain restrictions remain that still prevent us from working in terms of ensuring the interests of all consumers in the global food markets. This continues to push prices in world markets up. But we hope that the work on lifting the remaining restrictions will continue. That's the first thing.
Second. Of course, you probably remember and saw my meetings with our friends from Africa, from African organizations. As I said in my speech, we promised to do everything to ensure the interests of developing countries in terms of supplies to their market, including Ukrainian grain. And everybody was talking about it that way when it was talked about.
What we are seeing is another brazen deception. It's not about us, it's about deceiving the international community, deceiving partners in Africa and other countries that are in dire need of food. This is just a swindle, a boorish and arrogant attitude towards those partners for whom all this was allegedly done. Just cheated, you know?
I spoke with one of the leaders of a European state about a month ago and mentioned that out of 21 ships, only two were sent to developing countries. But now there are already 80 ships, and the amount of food in developing countries is not increasing. I just don't even know how to qualify it. Indeed, just as they were once colonizers, they remained colonizers inside. First of all, they think about their own skin, about their own interests – they did not care, they hide behind the interests of developing countries, but they do everything exclusively in their own interests.
I hope that in the end the situation will change somehow. At least for our part, we will insist that all this measure with the export of grain and our food should be aimed primarily at a positive impact on world food markets, so that the price goes down. It has stabilised a bit there, but nevertheless the trend is still upwards, and, according to international organisations, the price of food will still rise.
Therefore, we need to join forces to reverse this trend. There is every chance for this. It is necessary not only to make decisions under some plausible pretext, but also to work together to implement the decisions taken.
Igor Doronov: A clarifying question. What does it mean to be deceived? After all, surely some documents were signed. This is not the case with NATO enlargement – we promise you in words, and we deceived you then.
Vladimir Putin: Unfortunately, these documents do not mention how much food, including from Ukraine, should go to developing countries. It's just that all this was done under the pretext of ensuring the interests of the poorest countries, so that there would be no hunger there. And all this pressure exerted on us by our quasi-partners and our geopolitical opponents was based precisely on Russia's call to ensure the interests of the poorest economies and prevent famine in these countries.
Of course, we have done everything to put together these agreements, and we are adhering to them and ensuring everything. It turned out that once again, as people say in our country, they were rudely thrown and cheated. And not only us, but also the poorest countries under the pretext of ensuring their interests. But it's an obvious thing.
You look at the reports: 80 ships, and two ships only went to the poorest countries, everything else went to European countries. Well, what is it?
Nevertheless, we will continue this work in the hope that the goals for which this event was organised will be achieved.
Igor Doronov: All right. We are waiting for November.
Nikol Vovaevich, Prime Minister of Armenia, please, you have the floor. Welcome to the podium.
Nikol Pashinyan: Thank you very much.
Dear Vladimir Vladimirovich,
Friends, let me first of all thank Vladimir Vladimirovich for the invitation to take part in the VII Eastern Economic Forum, which has established itself as an effective platform for exchanging views and ideas on a wide range of issues.
But I must say that this year the most popular phrase is probably the following, that we live in difficult times. But if you look deeper, the question arises: when were these times simple? To be honest, the history of mankind is generally a chain and sequence of difficult times. Therefore, mankind has come up with another formula that any crisis situations bring new threats and open up new opportunities. Now the main task for governments, for countries is how to manage threats, how to notice and use opportunities.
In this context, of course, times are not easy for our region as well, because here the challenges that have existed for a long time arise or are exacerbated. These are primarily security-related challenges. What is the reason for this with the current situation? When the attention of the entire international community, and especially armenia's strategic partner the Russian Federation in the field of security, is very focused on the situation around Ukraine. There are specific fears that this could lead to destabilization of the situation in our region.
By the way, we have not had a very stable situation in recent years. You know that in 2020 we survived the war. And the situation was similar to the fact that when Azerbaijan started this war, all the attention of the international community, including the Russian Federation, was focused on the problems associated with the Covid-19 pandemic.
We hope that in close partnership with the Russian Federation and our partners, we will be able to manage this situation and keep our regional situation under control, which is also very important for global security.
I want to say that we have good news, because now there is a very good dynamic in the Armenian economy. This year we are aiming for economic growth of at least 7 percent. In this context, I want to emphasize that the Eurasian Economic Union for our country has justified itself in this particular situation, because the economic growth that is now planned in Armenia is connected with the freedoms that the Eurasian Economic Union provides. I am referring to the free movement of goods – services, capital and labour, we can see this directly. Of course, we need to work on the next stage to support this dynamic, so that we do not have a new economic crisis after such economic growth.
I think that since the issue of regions has already been discussed here, it is necessary to clarify what relation Armenia has to the Eastern Economic Forum and the Far East. It is well known that in the current situation, logistics schemes are changing, dramatically changing. If we look at the map, we can see and notice the opportunities that will open up and open up for Armenia too. Despite everything, the flow of goods from East to West and from West to East will not stop. And from the North in the direction of the South, and from the South in the direction of the North - too. If you look at the map, it is obvious that Armenia is located at the crossroads of these routes, these directions. We think there really are opportunities to try to exploit.
Now in Armenia we are implementing the North-South project - this is the construction of a new highway that connects our southern border with Iran, and our northern borders with Georgia.
Then there's the new opportunity. As you know, on November 9, 2020, thanks to the personal efforts of Vladimir Putin, a trilateral statement was signed between Armenia, Azerbaijan and the Russian Federation on the cessation of all hostilities in the Nagorno-Karabakh conflict zone. The ninth paragraph of this statement refers to the opening and unblocking of all economic and transport infrastructures in the region. After that, on January 11, 2021, this time in Moscow, in person, we signed a trilateral statement with the President of the Russian Federation and Azerbaijan on the establishment of a trilateral working group headed by the Deputy Prime Ministers of the Russian Federation, the Republic of Armenia and Azerbaijan, which deals with the opening of communications in our region between Armenia and Azerbaijan.
The idea of this project is that Armenia will receive transport routes through the territory of Azerbaijan, Azerbaijan will receive transport routes through the territory of Armenia. But in a global sense, it is an opportunity to open new international trade routes. And I must say that we are very interested in this, and we hope to resolve this issue in the near future with the support of Russia.
Of course, not everything has been resolved here, and there has been good progress in the work of the tripartite commission. But not everything has been resolved, because it is necessary to solve the issues of legal meaning: under what legal regulations will these roads work?
But the position, in general, is clear that the roads that open should operate under the full sovereignty of the countries through which they pass. And we hope that on this principle we will be able to implement this project, which, by the way, I think logically, we call the project "Armenian Crossroads".
And we hope that the roads connecting the south with the north, the west with the east will pass through the territory of Armenia. And I think that this project is very important not only for the countries of the region, for Armenia, Iran, Azerbaijan, Georgia, Turkey, but also for the Russian Federation, for the Far Eastern countries, in general for the eastern countries and for the African region, and in general for the Middle East as well.
This is a truly global project that we hope to implement. Therefore, you know that we have already started a conversation with Turkey. We hope, with the support of Russia, to establish relations with Turkey. An intensive conversation is underway with Azerbaijan regarding the settlement of the Nagorno-Karabakh problem. In this context, we also hope for the support of the Russian Federation not only as a strategic ally of the Republic of Armenia, but also the Russian Federation and a very close partner for Azerbaijan. That opens up opportunities, I think.
But I also want to emphasize the role of the Russian Federation as a co-chair of the OSCE Minsk Group, which is engaged in the settlement of the Nagorno-Karabakh problem.
The main concern, I want to stress once again what. The main concern in terms of security in our region. I think, and this worries us, that there are forces that think that Russia, which is a key factor for security in our region, at least this perception in the Republic of Armenia, is a factor, this is confirmed by the relations and the agreements that are in force between the Russian Federation and Armenia. The problem is that there are forces that think that Russia is too busy with the Ukrainian issue. This can be conveniently used to destabilize the situation.
Then there's the situation, which I think might seem a little bit funny. A situation where there are forces that spend a lot of energy to present Armenia in Moscow as a country with a pro-Western government, and in Europe and in the West to present Armenia as a country with a strong pro-Russian government. This also adds a factor for destabilizing the situation in our region.
I am very pleased that we are in close dialogue with our partners on these issues, trying to clarify our positions on all issues on the international agenda. Of course, our relations with Russia have been and should remain strategic and allied. We hope that this factor will indeed be key to stability and peace in our region.
I want to end my speech with a somewhat unusual thought. I cannot say that I am convinced of this, but I have the impression that all countries, all governments of the world – all without exception – want peace and stability. The problem is that everyone has their own idea of peace and stability. In fact, all wars, all conflicts occur because of what? And what is the purpose of these conflicts and these wars? After all, the ultimate goal is peace. Because everybody is fighting for peace, and everybody wants peace, everybody wants stability. The main problem is that everyone has their own idea of peace and stability.
Our goal and our task – unfortunately, sometimes an unsolvable task – is to bring our ideas closer to global players about peace and stability, about the formulas on which peace and stability should be based. Bringing the views closer together for global players is, of course, more difficult.
Now, in recent years, this word is very popular – multipolarity. There seems to be something very close to consensus about this too. But the problem is that everyone also understands multipolarity in their own way. Here, too, we need to somehow try to bring the positions closer, namely the perceptions of participants in potential multipolarity.
Thank you!
That's all I wanted to say today.
Igor Doronov: Thank you very much.
Yes, Armenia is a country that knows for itself what an energy crisis and a food crisis are. In the 1990s, you experienced all this as a country, and this is all understandable.
But now you are experiencing a very strong intensification of relations with Russia, with Vladimir Vladimirovich you have communicated several times over the past weeks, you came here, to Vladivostok, to the forum. Are you not afraid that you will now fall under some secondary sanctions?
Nikol Pashinyan: I think that being afraid is not a very useful position. We need to work to, as I have already said, manage the threats that appear and try not only to notice the opportunities that are opening up, but also to work with us so that new opportunities open up. And today we see this, as I said, as I said.
By the way, of course, we are also very concerned about food security, energy security – I have already stressed. But I must say that, of course, we also have high inflation, and this directly affects the social situation in our country. But I must say that in general, our situation is manageable. There is a problem, but we do not have a crisis situation. I want to emphasise that this is thanks to the support of the Russian Federation, because everyone had very big concerns about those issues, especially in the first half of the year.
We communicated very intensively not only within the framework of the Eurasian Economic Union, but also in a bilateral format, and we raised questions. I must say that I am impressed by the promptness with which Vladimir Vladimirovich and Mikhail Mishustin responded to the questions and requests that were raised by the Armenian side. Indeed, this is a very important partnership. I am not sure that all the people of Armenia are aware of these nuances, despite the fact that we constantly talk about it, but it is really very important.
We have just talked about the transportation of grain in different directions. I must stress that thanks to the decisions taken by the President of Russia and the Government of Russia, we managed to manage these threats together. It would be very difficult for us, Armenia, to cope with this.
Here is a specific situation that does not threaten any sanctions.
Igor Doronov: Thank you.
Mr President, you have a question based on Nikolai Vovaevich's speech. He said that everyone wants peace, but everyone has their own idea of the world and their own idea of multipolarity. This is just the topic of our forum. What is Russia's idea of the world and multipolarity?
Vladimir Putin: We have stated this many times, and I can confirm it once again. The notion of multipolarity and peace is that the world should be much more just, the world should not be based on the dictates of one country that imagined itself as the representative of the Lord God on earth, and maybe even higher, and bases all its policies on its supposed exclusivity.
It is necessary to respect the interests of other countries, to treat them as equals, regardless of the size of the territory, the volume of GDP or the presence of modern weapons in the army of a particular country. It is necessary to be based on the principles of international law, and not on some rules that someone invents for themselves.
That is justice, and that is the stability of the world order. We have always proceeded from this, and we will proceed from this, and we will fight for our sovereignty. And let no one doubt that we are ready to cooperate with any state that wants it in these conditions, and we will do it. I am sure that in the end everything will turn out this way, everything will return to normal.
Igor Doronov: I would like to continue with this. You say that everyone is free to choose everything, international rights are valuable. Why, then, can't the world solve some problems?
Vladimir Putin: Because international law is always trampled upon.
Now many are saying that Russia violates international law. I believe that this is absolutely not true.
Who started the war in Iraq without any United Nations sanctions? Who destroyed Yugoslavia under plausible pretexts? Who did it? Who unleashed the war in the center of Europe by bombing Belgrade? No one remembered the principles of international law then.
I will give you a very simple chain related to international law and the validity of our actions.
The Charter of the United Nations speaks of the right of nations to self-determination. During the Kosovo crisis, the International Court of Justice ruled that if some part of the territory, part of the country wants to declare its independence, this part is not obliged to ask permission from the central government of its country. That is the case with Kosovo.
With regard to the Donetsk Republic and the Lugansk Republic, why not the same? It's all the same. If they have the right to do so – and they have it in accordance with the UN Charter and the right to self-determination – they have declared their independence in exercising this right. Do they have the right from the point of view of international law and the UN Charter? They have, and this right is confirmed by the relevant decision of the UN Court in relation to Kosovo. Precedent.
If they have the right, they did, do we and any other country have the right to recognize them? Has. We recognized. If we have recognized them, can we conclude an international treaty of friendship, cooperation and mutual assistance with them? Of course we can. We concluded. This treaty has been ratified by the Parliament of the Russian Federation and their parliaments, and there certain obligations lie with the Russian side: to provide them with assistance, including in case of aggression.
In this case, aggression on the part of the Kiev regime, which in fact is illegitimate, because it is based on a coup d'état as the primary source of power today in Ukraine.
That's what we're doing. Is this in line with the UN Charter? Matches. There is Article 51 of the UN Charter, which talks about protection, about self-defense. As a party to this treaty, we have an obligation under this clause and this article of the UN Charter to assist our allies. That's what we're doing.
Here is a simple chain and logic in full compliance with international law. That's it. And where is the same situation, say, in Iraq? They took it and they crushed the country. It's the same with Libya – Libya was ground. Where is this international law? No.
Everyone understands, those who do this, that this is not in accordance with international law. That's why they talk about some far-fetched rules. What are the rules? What did they come up with? Where did they get them from, these rules? Let them live by them.
Igor Doronov: Thank you.
Let's move back to the problems of the Far East. I give the floor to Prime Minister Luvsannamsrain Oyun-Erdene of Mongolia.
L.Oyun-Erdene (retranslated):First of all, I would like to thank you, President of the Russian Federation Mr Putin, for the invitation to participate in the forum, as well as to welcome the distinguished heads of delegations participating in the forum.
Dear participants of the forum! Ladies and gentlemen,
This forum is being held in difficult post-pandemic and crisis conditions in international relations. Nevertheless, all these conditions open up new opportunities for us, and I think that many will agree with me. Our region, in order to overcome these crises, must unite so that we can overcome all the difficulties that confront us.
Therefore, today I would like to talk not so much about difficulties, but about opportunities, more positive things that we could do together.
During this forum, I would like to acquaint you with major projects of regional importance that will be carried out in our country as part of the implementation of a long-term development program called Vision 2050, and the first stage of this program, called the Policy of New Revival.
The population [of Mongolia] is 3.3 million people, our country is on the 99th place in the human development index, GDP is 13.8 billion US dollars, in terms of the share of the territory that falls on one person, our country occupies a leading place. Nevertheless, we have many issues that need to be addressed together.
In 2020, Mongolia adopted a long-term development program "Vision-2050". The goal of this program is to expand Mongolia's economy tenfold by 2050, as well as to become one of the leading countries in Asia in terms of social development, economic growth and quality of life of the people.
To achieve this goal, as well as for the post-pandemic economic recovery, we have as soon as possible launched the first phase of the "Policy of New Revival" program. About 50 major projects will be carried out in six main areas - border crossing points, energy, industry, balanced development of villages and cities, "green" development and increasing the efficiency of state activities.
Based on the results of the New Revival Policy, we expect that GDP will increase at least three times, exports will increase by 2.5 times, the capacity of border checkpoints will increase three times, and so on.
When developing this policy, we linked its content in detail with the development programmes of Russia and China, as well as with the development goals of other countries in our region. I think that the active participation of investors and the largest companies in our region is very important here.
Since we have little time, I will briefly introduce you to the programs of border points, energy and industry.
Our country is landlocked, so border posts are important for our country. We have 42 land border posts and 46 air points. We have 29 border crossing points with Russia and 13 with the People's Republic of China. We are modernizing them, taking into account the standards of our neighboring countries, and we hope to bring them to the international level.
We think that with a threefold increase in the capacity of border checkpoints, conditions will be created to make Mongolia a transit country in our region.
On the sidelines of the WEF, we actively negotiated the construction of the eastern vertical railway line. In particular, yesterday we exchanged views on this project with the management of Russian Railways. Thus, this project is a connection between three countries – Russia, Mongolia and China – by rail through the territory of Mongolia.
Mongolia is ready to cooperate with international investors in the framework of the implementation of projects for the arrangement of border checkpoints and other infrastructure projects, as well as in programs for the renewal of air transport and air cargo transportation.
Secondly, we are implementing a project in the field of energy. We are interested in participating in the largest energy projects in our region – not only to meet domestic needs, but also to export electricity.
As for "green energy". We plan to start construction of the Erdeneburen hydroelectric power station together with our Chinese partners. Construction will begin in the spring of next year. And negotiations are underway with the Russian side on the construction of the Egiin-Gol hydroelectric power plant, as well as the modernization of existing power facilities on our territory.
During this forum, we are open to companies and investors to discuss these projects. Our delegation includes the Minister of Energy and other officials who could discuss these projects with you.
Also, the third goal of the "Policy of New Revival" is the revival of the industrial sector. Mongolia's exports account for 92 percent of the mining industry, of which 31 percent are copper concentrate exports, 30 percent are coal exports, 11 percent are gold and iron ore.
Since January 2022, work has begun on the creation of underground mines of the Oyu-Tolgoi coal deposit, which is among the top five in terms of established reserves.
Also today, we held talks with the management of Gazprom on the construction of a gas pipeline from Russia to China through the territory of Mongolia. We are pleased that all work on the implementation of this project is proceeding according to the schedule previously established by our countries.
In just a few days, we will meet with the Chairman of the Standing Committee of the National People's Congress in Mongolia and will also discuss with him bilateral issues of our cooperation.
In order to carry out comprehensive reforms, we are working to improve the investment environment, bringing foreign trade cooperation to a new level. Today we are open to investors and the largest companies being able to actively cooperate with us to implement the projects that we have set for ourselves.
Our public services are combined into a single portal E-Mongolia.
You can also stay in our country. We will be very glad to welcome you.
This forum is taking place in difficult times. Times of crisis are, of course, unpleasant, but, on the other hand, they open up new opportunities for us.
Once again, I express our country's readiness for active cooperation in our region. I wish all the best to the participants of the forum. We hope that we will successfully overcome all the difficulties of the post-pandemic period and will actively participate in the integration processes of our region. I think that these good times are not far off, when we will be able to actively work on infrastructure projects and other issues.
Igor Doronov: I will ask you a question based on your speech. You just mentioned the Power of Siberia 2 gas pipeline, which is to run from Russia to China. And why do you think that it should pass through the territory of Mongolia? Has this issue already been resolved? Because, as far as I know, China was against or had some misunderstandings on this issue.
Lev Oyun-Erdene: This is a very large regional project. We have already developed a preliminary feasibility study [feasibility study], today we talked about this in detail with the management of Gazprom, we must create a legal framework, and in the near future we will already submit drafts of these documents to the parliament of our country.
During the Beijing Olympic Games, I met with the President [of the People's Republic of China] and the Head of Government of the People's Republic of China. We are only in favor of successfully carrying out this project, and we are fully confident that it will really go well – successfully.
Why should this gas pipeline pass through Mongolia? First of all, this is an integration process. Our three countries must be united economically. This is not only a matter of the gas pipeline project, there are also projects of railways, roads, air traffic. All these factors should unite our three countries, so that we will achieve more successful economic growth, and our region will become more competitive around the world.
That is why we cooperate with our neighbors. There are calculations that by 2029 we should complete the implementation of these projects.
Igor Doronov: Thank you very much.
Vladimir Vladimirovich, if we are talking about gas, the latest news is the introduction of restrictions on the price of gas and oil, which the G7 or the European Union are going to adopt. What's your take on that, what are we going to do?
And the second thing. And if the very western direction is closed, the eastern one will be able to meet all the needs and will we be able to redirect all our flows here?
Vladimir Putin: First of all, our energy resources should be used to develop our own country. This applies to all primary energy sources and all mineral resources. But we have so many of them that we are ready to meet the growing needs of everyone who wants to work with us. This is a very good and profitable cooperation for our partners, including for European countries, because our pipeline gas is always an order of magnitude, several orders of magnitude more competitive than liquefied natural gas brought across the ocean. It's an obvious thing.
Having received natural gas from the Russian Federation for decades, the economies of leading European countries have had obvious concrete advantages of a global nature. If they believe that they do not need such advantages, nothing, this does not bother us in any way, because the need for energy resources in the world is very large. It's not just our friends in the People's Republic of China, the country's economy is growing, as I have already said, everyone in the world knows this well, at a great pace, and energy needs are increasing. We are ready to cooperate with any country. There are a lot of such countries in the world.
Of course, the European market has always been considered premium, but the situation in the world is changing very quickly, and more recently, at the beginning of the crisis around Ukraine, it ceased to be premium. Even the American partners of the Europeans have redirected their tankers with liquefied natural gas to Asian countries.
Igor Doronov: It was more expensive there.
Vladimir Putin: Including China. Because it was more expensive to sell there, that's all. And Americans in general are very pragmatic people.
They fought with one of our projects to liquefy natural gas in the Arctic, we will not point fingers at some of the leaders of this enterprise, and the first tanker with liquefied natural gas from this field, from this enterprise, went to the United States, because it was profitable.
When Leonid Viktorovich [Mikhelson] told me about this, I didn't even believe him. I say, "Come on." He says, "Yes." I say, "Why?" – "Yes, it is profitable because, immediately bought." Pragmatic guys, and in this sense you can learn a lot from them.
So, as for our resources. You know, the need [for them] is so great in world markets that we have no problems with implementation, especially with such a large economy. In fact, it is the largest economy in the world today in terms of purchasing power parity – the Chinese economy is larger than the American economy – the needs are growing, our agreements are stable, relations are at an unprecedentedly high level, and the Power of Siberia is working in full. We are also studying other routes, another possible route there, by the way, may be through the Primorsky Territory, through Mongolia. Such decisions are not made immediately because someone does not want something – everyone wants it, the question is economic and geological conditions. Now, as far as I understand, the economic operators have agreed among themselves. Everyone believes that one of the routes can be laid through the territory of Mongolia.
Mongolia is a friendly country for us, politically stable, and we do not see any problems here. As far as I know, I can ask Mr Miller later, all the main parameters of this deal have been generally agreed. We even agreed with our Chinese friends on price parameters, which is always not so simple. Our Chinese friends are sophisticated negotiators. Of course, in any transaction, they proceed from their national interests, which is very correct. But they are a stable and reliable partner, and the market is enormous.
But not only that – we will also be engaged in liquefaction, we will sell all over the world. As you can see, I have already cited the example of the first Tanker Arctic LNG-1 (from the field, of course, from the Arctic) – everyone buys, they will buy it profitably. So we don't have any problems. If European countries suddenly want to give up, including their competitive advantages, for some reason, this is their business. Let.
Igor Doronov: Will the restriction on gas prices hit us hard?
Vladimir Putin: You see, this is another nonsense, another non-market decision that has no prospects. All administrative restrictions on world trade only lead to distortions and higher prices. After all, what is happening now in European markets is the result of the work of European specialists and the European Commission. We have always insisted that prices be formed on the basis of long-term contracts and be tied to such a market category as prices for oil and oil products, a basket. Prices for oil and petroleum products are formed by the market, and the price of gas in long-term contracts is tied to this price. Why? Because this production requires large investments, and those who invest in production must be sure that the product will be sold. Therefore, in general, Gazprom is interested in having long-term contracts.
We were told, "No. It's not exactly marketable. We need to focus on the spot, on the spot market." We persuaded them, and I personally worked on this in Brussels, I said: "We should not do this, because gas trade is still a special segment of the world market. Both the one who extracts and sells and the one who buys must be confident in the stability of the relationship." "No," we were told, believing that the price then was too high - $ 100 per thousand cubic meters, very high then, it seemed to them, or $ 300 later. Those were the prices. Now how much already, for 3 thousand euros the price flew away. We said, "Don't, don't do it." No, they practically forced their companies and imposed it on us – they imposed it! - Linking to the spot. Now in the price structure a significant part of the price from the spot.
This is not our demand, this is what was imposed on us by the Europeans. Having imposed on us these really stupid solutions for the gas trade, now, faced with what is happening now, they are thinking about how to get away from it. How? Administrative decisions to limit the price. Another nonsense, nonsense, which will lead to a further increase in prices on world markets, including in Europe. Nothing can be solved by administrative means in the sphere of economy and world trade.
I.Doronov: Was Nord Stream 2 built in vain?
Vladimir Putin: No, we are not building anything in vain. We have received the appropriate technologies and worked it out. If necessary, please enable Nord Stream 2. If you are interested in this question, I can also talk in more detail, only I feel sorry for the time.
Igor Doronov: No, you have said a lot about this, that we are ready and that the pipe has been built.
Vladimir Putin: Nord Stream 1 is now virtually closed, and everyone says, "Russia is using these energy weapons." Nonsense and nonsense. What weapons do we use? We supply as much as our partners need, as much as they put an application – as much as we execute. We do not deliver to the air somewhere, but on request. The order is delivered – we execute.
What happened? Two lines of the gas pipeline through Ukraine, Ukraine on its own initiative took and disconnected one line under the far-fetched pretext of lack of control over it. They shut it down. We did not close, Ukraine closed. Time.
The second pipeline system "Yamal – Europe" through Poland. Poland took and sanctioned this gas pipeline, and closed it. Did we do that? The Poles closed. The Ukrainians closed, the Poles closed.
Nord Stream 1. Our German partners subordinated the entire technical aspect of Nord Stream 1, the maintenance of gas pumping turbine units, to British law, because, it turns out – I did not know this myself, Alexei Borisovich [Miller] reported to me – Gazprom had to conclude a contract for the maintenance of these units produced by Siemens not with the central office of Siemens, but with a subsidiary in the UK, which put Gazprom under sanctions. and it was agreed to repair these turbines at the Siemens plant in Canada.
What do we have to do with this? Canada took, in the end, by numerous requests from Germany gave to Germany, and under an agreement with a subsidiary of Siemens in the UK, the turbines should be directly sent to St. Petersburg. Logistics has changed – we need to make changes to the contract. The British subsidiary of Siemens does not even respond to Gazprom's requests.
Here you can take as many pictures as you like against the background of this turbine, but give the documents, in the end. This is our property. We must understand the legal status of this property and the technical condition. They give nothing but general conversations.
The last turbine is now out of order, and Siemens representatives came and looked at the oil leak there, an explosive situation, a fire hazard. Of course, this is not how a turbine can work. Give us turbines, we will turn on Nord Stream 1 tomorrow. They don't give anything. They say they use it as a weapon. What weapons? They did their own things, now they don't know what to do about it. We have driven ourselves into the so-called sanctions impasse.
There is only one way out. In Germany now, we see demonstrations demanding the inclusion of Nord Stream 2. We share these requirements of consumers in Germany, we are ready to do it tomorrow, you just need to press the button, but we did not impose sanctions on Nord Stream 2. They did it under pressure from the Americans, and why are they pressing? Because they want to sell, at a triple price. We know the position of the former [American] administration. They said, "Yeah, we're selling more. Let them buy it because we protect them." Let them buy then if they want. We will sell our goods.
Igor Doronov: As for Britain, I will immediately catch up with the question. The new Prime Minister is Liz Truss, before that was Boris Johnson. What are your expectations from the new Prime Minister? I understand that there is no hope for a better relationship after her various statements?
Vladimir Putin: Look, the UK has a procedure for electing a head of state that is far from democratic principles. It takes place within the framework of the party that won the previous parliamentary elections. The people of Great Britain are not involved in the change of Government in this case. The ruling elite there has its own attitudes. We know the Tories' position on these issues, including in relation to Russia. This is their business: how to build relations with the Russian Federation. Our job is to protect our own interests. We will do this consistently, let no one doubt it.
Igor Doronov: Thank you very much.
Now I give the floor to Mr. Li Zhanshu. You are welcome. Our Chinese partners, with whom it is interesting, but sometimes difficult, to negotiate.
iably have an impact on the whole world.
The conflict in Ukraine and the COVID-19 pandemic have had a significant impact on the whole world. The conflict in Ukraine and the COVID-19 pandemic have had a significant impact on global supply chains. Shortages of food, grain, fertilizer and fuel are of serious concern to developing countries.
From the very beginning of the conflict in Ukraine, we have stressed the need to choose the path of diplomacy and dialogue. We support worldwide efforts to end this conflict. In this regard, we welcome the recent agreements on the safe export of grain and fertilizers.
Once again, I thank President Putin for giving me the opportunity to make a speech at this forum. I also express my best wishes to all participants of the Eastern Economic Forum.
Thank you very much.
Igor Doronov: And now we are moving to Malaysia. His video message was sent by the Prime Minister of Malaysia Ismail Sabri Jacob.
Ismail Sabri Jacob: Good afternoon, ladies and gentlemen!
Dear President of Russia Vladimir Vladimirovich Putin,
Dear Heads of State,
Dear participants of the Eastern Economic Forum!
First of all, let me express my deep gratitude to His Excellency the President of the Russian Federation Vladimir Vladimirovich Putin and the organizers for the offer to make an introductory speech at the plenary session of the VII Eastern Economic Forum this year.
As you are well aware, this forum is aimed at supporting the economic development of the Far Eastern region and expanding opportunities for international cooperation in the Asia-Pacific region.
I would like to express my admiration and respect for President Vladimir Putin and the Government of the Russian Federation for the consistent implementation of efforts aimed at the development of the Far Eastern region, rich in natural resources, such as minerals, oil and gas. I hope that Malaysia can become part of a partnership aimed at the rapid, balanced and inclusive development of the Far East region and Vladivostok.
Ladies and gentlemen,
Today, the world faces a number of challenges – from economic instability, health risks, geopolitical conflicts to climate change. These threats have an unforeseen impact at the global level and force the international community to pay attention to atypical security issues, in particular food security.
In this regard, there is a need to develop a comprehensive strategy for various types of global security threats that will allow us to formulate and jointly implement a systemic solution.
For the world to continue moving forward, global political and economic stability is essential. However, the significant differences between countries and regions in terms of political system, economic power and level of development require recognition and a reasonable approach, especially on the part of the great powers, which are the leading players in the world political and economic arena.
That is why any desired solution should serve not only the interests of one party, but, undoubtedly, work for the benefit of all parties involved.
Countries that still believe in hegemony will continue to multiply political and social divisions, tensions, and instability.
Meanwhile, unilateral sanctions imposed by the world's great powers disrupt existing supply chains in the manufacturing sector.
Dear guests!
The world is moving towards a new order based on multipolarity, which brings with it both threats and opportunities that can be seized by all stakeholders. The challenge for all countries of the world is to learn to adapt and adapt to this new legal order with a new balance of power to shape a more prosperous, sustainable and just future.
From Malaysia's point of view, no country should be isolated, so we have always adhered to a policy aimed at establishing friendly relations and are open to cooperation with all States. We believe that every nation should take a bold step towards the formation of a new multipolar world based on respect, international diplomacy and friendly relations between states.
From an economic point of view, in this multipolar world, some developing countries are becoming new economic powers, while others are seeking to become additional catalysts for growth, and still others are trying to unlock their potential under this new system.
By 2040, Asian countries are expected to account for half of global GDP and about 40 percent of global consumption, most of which will come directly from Southeast Asia.
Almost 60 per cent of trade in the Asian region comes from Asian countries themselves. This clearly shows that Asia can influence world trade trends through an interregional approach.
In addition, the implementation of economic cooperation initiatives, such as the Regional Comprehensive Economic Partnership, the Comprehensive and Progressive Agreement on the Trans-Pacific Partnership and, of course, APEC - Asia-Pacific Economic Cooperation, contribute to the creation of a free trade area covering most of the global economy.
At the regional level, Malaysia firmly adheres to the principle of ASEAN-centricity, as well as to the fundamental principles of mutual cooperation, respect for national sovereignty and the spirit of helping member countries achieve peace and prosperity in the region.
As a founding member of ASEAN, Malaysia will continue to play an important role in strengthening the ASEAN community and interregional integration. That is why we hope that all ASEAN partner countries will pay attention to this and adhere to this principle.
As a developing nation, Malaysia welcomes the initiative of the BRICS member countries, which includes Brazil, Russia, India, China and South Africa, to create a platform that provides developing countries with space and opportunities to communicate and emphasize their positions, as well as views on the current situation or developments related to the development agenda, in the format of the High-level Dialogue on Global Development within the framework of the FOURTEENth BRICS Summit, which took place in June of this year in Beijing, China.
Finally, I would like to emphasize that Malaysia remains committed to working with all countries of the world to find the best way to address current problems in a more meaningful way.
Thank you for your attention!
Igor Doronov: I will now ask you to deliver an appeal from Prime Minister of Vietnam Pham Minh Tinh, and then I ask you to prepare a slide with our survey, which we will show immediately after this appeal.
Pham Min Tin: Dear President of the Russian Federation Vladimir Vladimirovich Putin,
Ladies and gentlemen,
Dear friends!
First of all, I would like to thank the Organizing Committee for the invitation to participate and speak at the VII Economic Forum.
Taking this opportunity, on behalf of the Government of Vietnam, let me convey my best wishes to Russian President Vladimir Putin and all the participants of the forum.
The forum, which this year is held under the motto "Towards a multipolar world", is of practical importance in conditions when the world economy and trade face numerous difficulties and challenges of a global nature, primarily with the impact of the coronavirus pandemic and climate change. This requires us to form global approaches and further expand international cooperation, which will serve to maintain stability and development in this part of the world and on a global scale – the prosperity and well-being of peoples. After all, it is the inhabitants who are always the center, the subject, the driving force, the source and the goal of development.
Ladies and gentlemen, Dear friends!
Vietnam consistently pursues an independent, independent and multi-vector foreign policy, is a good friend and reliable partner of all countries, a responsible member of the international community, and invariably stands for peace, cooperation and development in the region and in the world. At the same time, we are building an independent and self-reliant economy, actively, proactively and effectively participating in international integration.
Currently, along with effective control over the coronavirus pandemic, Vietnam has managed to maintain economic stability, contain inflation, ensure high economic growth and overall economic balance, maintain political stability and public order. Foreign policy activities are intensifying, cooperation in investment activities, as well as in the tourism sector, especially in the post-pandemic period, is being restored.
It is estimated that Viet Nam ranks fifth out of 35 Asian countries in terms of economic openness. We have concluded 15 free trade agreements with more than 60 states and territories – with almost all major economies of the world.
At the same time, Viet Nam actively participates in many multilateral initiatives, including regional and interregional economic groupings, thereby responsibly contributing to sustainable development in the Asia-Pacific region.
Dear ladies and gentlemen, dear friends!
Vietnam has always attached great importance to the comprehensive strategic partnership with the Russian Federation.
We highly appreciate the results of economic cooperation between our countries in recent years, especially in such areas as energy and industry and others. We are determined to further promote bilateral cooperation in those areas in which the parties have advantages, as well as to make maximum use of the preferences laid down in the free trade agreement between Vietnam and the Eurasian Economic Union.
At the same time, we consider it necessary to study the possibility of finalizing and updating this agreement, bringing it into line with modern realities.
In terms of multilateral cooperation, Vietnam appreciates the role of the Russian Federation in the Asia-Pacific region and supports Russia's policy of expanding economic cooperation with the Asia-Pacific countries, including by tapping into the rich potential of the Russian Far East. I would like to note in particular such key areas as ensuring logistics chains, reliable supplies of goods, raw materials, food, as well as sea transportation.
We welcome the deepening of the Russia-ASEAN strategic partnership and Russia's contribution to ASEAN-centric mechanisms, including the ASEAN Regional Forum, the East Asia Summit, as well as other multilateral platforms, such as the Asia-Pacific Economic Cooperation (APEC) forum and the Asia-Europe Cooperation Forum (ASEM).
Along with this, Vietnam is ready to act as a link in promoting the strategic partnership between the Association and Russia. I intend to further promote cooperation between ASEAN and Russia in all areas, including the economy, trade, investment and tourism, as well as accelerate the preparation of free trade agreements between ASEAN and the Eurasian Economic Union.
I wish you a successful VII Economic Forum. I wish Mr President and all the participants of the forum good health, happiness and success.
Thank you.
That ends the first part of the transcript.