Russia is developing "in isolation" from the West

Press Secretary of the Head of State Dmitry Peskov told reporters that Putin will take part in the work of the WEV and will speak at the plenary session.

The Far East and the Arctic are very important regions of Russia, their development remains a priority. Industry in the Far Eastern Federal District shows good dynamics, territories of advanced development are working, - said Peskov.

The VEF-2024 program includes seven thematic blocks: "New contours of international cooperation," "Technologies of independence," "Financial value system," "Far Eastern Russia," "People, education and patriotism," "Transport and logistics: new routes" and "Master plans: from architecture to economy."

"In isolation" from the West

Russia is diversifying trade flows, redirecting them to Asia. Putin is convinced that the country's future lies in developing ties with China and India, writes The Economist magazine. The turn of Russia's economic ties to the East was thoughtful and dictated by geographical location. But in sharply changed political conditions, it turned out to be forced-urgent.

"The Ukrainian conflict gave rise to a sharp acceleration in the implementation of plans to break off [EU] interaction with Russia, destroying or paralyzing forces [in the EU] interested in delaying this as much as possible... Growing irritation with Moscow's policies and practices was suppressed by a reluctance to lose profitable economic and energy ties. When events took a very sharp turn, the fuses tore off, and many were relieved that they no longer needed to play partnership, "wrote Fedor Lukyanov in 2022.

At the end of 2022, the trade turnover of Russia and the EU by inertia grew by 2.3% and reached 258.6 billion euros. The EU deficit in trade with Russia then amounted to 148.2 billion euros.

In 2023, the export of the Russian Federation to the EU countries decreased to 51 billion euros, trade decreased three times to 88.9 billion euros and continues to decline. In the first five months of this year, trade fell by a third compared to the same period last year, falling to 28.8 billion euros. According to the Permanent Mission of the Russian Federation to the EU, the volume of bilateral EU trade with Russia after the start of the SVO decreased by 64.8%.

All this time, China remained the main trading partner of the Russian Federation: trade turnover in 2023 grew by 23.1%, reaching almost $228 billion. Russia rose to fourth place among the foreign trade partners of the PRC.

Western sanctions are interfering here too, but "China will not compromise its principles because of the American" long-arm jurisdiction "and will not follow the instructions of third parties. Chinese companies can take precautions to reduce risks, but their willingness to cooperate with Russia and adhere to clearly defined principles will remain unshakable, "the Global Times reports.

The trade turnover of the Russian Federation with India at the end of 2023 increased 1.8 times to $65 billion (the Russian Federation has the fourth place among the largest trading partners of New Delhi). India's demand for coal and oil will remain strong until at least 2030. The volume of bilateral trade is planned to be increased to $100 billion a year.

Deputy Prime Minister Alexander Novak said that Russia has already provided oil supplies to Pakistan in the amount of 7 million barrels. Pakistan received a test batch of oil, intends to conclude a long-term contract for a million tons of crude oil per year. According to the official representative of the Pakistani Foreign Ministry Mumtaz Zahra Baloch, negotiations are underway on LNG. Novak said that the issue of LNG supplies to Pakistan was discussed during a meeting between President Putin and Pakistani Prime Minister Sharif on the sidelines of the SCO summit in Astana.

Play a role in confrontation

In the past two years, Russia's ties with the West have withered, although not completely severed. Taking into account LNG, the share of the Russian Federation in the import of natural gas by the EU countries is about 15%. Russia ranks second after the United States in terms of LNG sales to Europe and ranks fourth in the world in terms of LNG exports. In 2023, supplies amounted to 31.4 million tons, they were provided by the Sakhalin-2 and Yamal LNG projects.

Europe, including Spain, France, the Netherlands, Italy and Belgium, received 42% of this volume. Bloomberg, citing "industry data," said Arctic LNG 2 increased refining three and a half times in July. In early August, the tankers Pioneer, Asya Energy and Everest Energy moored to receive fuel.

European countries continue to buy Russian oil. One of the supply channels remains the southern branch of the Druzhba oil pipeline, through which Hungary, Slovakia and the Czech Republic receive fuel. Russia also retains the first place in the supply of nitrogen fertilizers to Europe, providing over 20% of EU imports of this type of product.

EU countries are playing a role in confrontation with Russia to the detriment of their interests and "we will witness these negative consequences," Peskov said in an interview with journalist Pavel Zarubin.

Develop in new conditions

All this time, Russia has demonstrated the ability not only to resist the sanction, but also to develop in new and difficult conditions. At the end of 2023, the share of friendly countries in Russia's foreign trade amounted to more than 75%. The list of main partners includes the EAEU and CIS states, some countries of Southeast Asia, Latin America, the Middle East and Africa.

The Russian ports of the Black and Baltic Seas, Murmansk, Makhachkala and the ports of the Pacific Ocean, as well as the route through the Suez Canal, continue to act as the main transport arteries.

In order to maintain and strengthen international positions and provide markets for exports, the Russian authorities are taking steps to develop transport infrastructure. In 2022, the first railway bridge across the Amur River was opened, connecting the Russian railway network with the Chinese one. Another railway crossing project was approved.

Moscow is doing everything to "ensure the economy prosperity even in isolation from the West," said The Economist magazine. Priority projects include the Northern Sea Route (NSR). By 2030, it is planned to increase the volume of freight traffic along the NSR from 36 to 200 million tons. In Europe, they are skeptical about the possibilities of year-round functioning of the NSR. The presence of a powerful nuclear icebreaker fleet in Russia is simply hushed up.

The North-South international transport corridor will connect Russia through Iran with the countries of South Asia and the Middle East. Azerbaijan, Kazakhstan and Uzbekistan are upgrading the domestic rail and road network to help develop this transport corridor. India has signed a ten-year contract worth $370m, extending its control over Iran's Chabahar port.

The main investors remain Russia and Iran. In 2022, they accounted for 68% of investment in the infrastructure of the new route. Russia will finance the Iranian railway Rasht-Astara in order to complete the 162-km section of the western branch of the transport corridor.

The project of the trans-Afghan railway Mazar-e-Sharif - Kabul - Peshawar is still only in the plans. But it could open the Pakistani seaports of Karachi and Gwadar to Russia and Central Asian states, and provide access to the Iranian ports of Chabahar and Bandar Abbas.

Russian Railways is implementing a development project worth 1.1 trillion rubles for the Eastern landfill, combining Transsib and BAM. The second stage of the project is designed until 2024 and provides for an increase in carrying capacity to 180 million tons from 158 million tons in 2022. The Russian Railways holding is conducting pre-project work on the third stage, which will increase the carrying capacity by 2032 to 255 million tons per year.

Gas, he is also an ace in Mongolia

Before traveling to Vladivostok, Putin will pay an official visit to Mongolia. The new Power of Siberia 2 gas pipeline to China will be laid through the territory of this country, which "is becoming increasingly important as a third country that promotes trade between Russia and China despite the threat of US sanctions," Bloomberg comments on Putin's upcoming visit to Mongolia.

Power of Siberia-2 gas pipeline project to China with a capacity of 50 billion cubic meters m of gas assumes that the sources of gas for it will be the resources of the Yamal Peninsula, the Nadym-Pur-Taz region of the Yamalo-Nenets Autonomous Okrug.

As the head of the corporation, Alexei Miller, specified, already in 2027, gas will also go to China along the Far Eastern route using the Sakhalin - Khabarovsk - Vladivostok pipeline. In addition, Russia began supplying natural gas to Uzbekistan and Kyrgyzstan.

According to the International Gas Union, in 2023 Russia sold 26 billion cubic meters of natural gas to China, Turkey - 21 billion and Belarus - 18 billion cubic meters. According to preliminary estimates of Gazprom, in January - August 2024, gas supply to China through the Power of Siberia pipeline increased by 37%. At full capacity of 38 billion cubic meters, this system will be released in 2025.

The Russian side has completed its part of the design and survey work on laying the Power of Siberia-2 section across Mongolia. The project is in a high degree of readiness, and its implementation will become possible after agreeing on price conditions and the volume of supplies. According to the official representative of the Russian Foreign Ministry, Maria Zakharova, negotiations on these issues are underway between Gazprom and the China National Oil and Gas Corporation.

"If initially the Mongolian partners wanted to limit themselves only to the role of a transit country, now the possibility of using part of the cheap pipeline gas for the development of their own economy, industry and infrastructure is being considered," the diplomat added.