President of Russia attended the plenary meeting of the 11th Eastern Economic Forum (EEF) together with President of Indonesia Prabowo Subianto, Prime Minister of Mongolia Nyam-Osoryn Uchral, Vice President of Myanmar U Nyo Saw, and Vice Premier of the State Council of China Ding Xuexiang.
The discussion was moderated by Editor-in-Chief and anchor for the business television channel RBC Kirill Tokarev.
The main theme of this year's Forum is The Far East: Development for the Benefit of People.
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Address by the President of Russia
President of Russia Vladimir Putin: Friends, ladies and gentlemen,
Mr Prabowo Subianto, Mr Nyam-Osoryn Uchral, and Mr Ding Xuexiang,
Friends,
I welcome the participants and guests of the 11th Eastern Economic Forum. This business event held in the capital of the Primorye Territory traditionally brings together business leaders, professionals and experts from dozens of countries, primarily from the Asian-Pacific region, of course, which is a powerful growth hub setting the development pace for the global economy as a whole.
Russia is an active member of investment and trade cooperation in the Asian-Pacific region. We are working on an equal footing with our partners and the region’s leading integration associations. Our strategic goal is to make the Far East a territory of cooperation and dynamic change in the economy and infrastructure, technological development, the training of personnel, and of course, in the social sphere. This is what our projects and programmes, and our support instruments for business and social initiatives are aimed at.
I would like to say that over the past 11 years Russia’s Far Eastern regions have attracted about 25 trillion rubles in capital investment. The dynamics of investment activity and industrial and construction growth have confidently been above the country’s average. As a result, regional GDP in the Far East has more than tripled over the past 11 years. It is a very good pace.
These figures and indicators cover a large number of modern enterprises, infrastructure and energy projects that have been launched and are working, including port terminals and railway lines, as well as industrial giants such as the Zvezda shipbuilding complex, which I visited yesterday. It is truly impressive, considering the difficulties we faced at the beginning. But the result is really very good. There are also modern high-tech facilities, such as the first production lines of the Amur Gas Processing Plant, which is a world-class facility, the Amur Gas Chemical Complex, and other facilities.
New, productive jobs are being created in the Far East, directly impacting both citizens’ incomes and the labour market. Incomes here are slightly higher than the national average. True, the cost of living is also higher, but earnings have increased. Just 20 years ago, the unemployment rate in the Far Eastern Federal District stood at around 8 percent, while the national average was a percentage point lower. This was a lingering legacy of the 1990s, when it was difficult to find promising, well-paying work in the region, particularly for young people.
Since then, unemployment in the Far East has dropped to just a quarter of that level. This year, it stands at 2.2 percent – on a par with the national average and a record low for the region.
For comparison, the highest unemployment rate ever recorded in the Far East was 16.4 percent in 1998.
Compared to that figure, the current rate represents less than one-seventh of that figure.
Strong economic activity is now observed across virtually all Far Eastern regions of the Russian Federation. This is particularly noticeable in small and medium-sized businesses that employ approximately one-third of the working population, which is a positive indicator. What does this tell us? It tells us that the Russian Far East is on the rise. Businesses and entrepreneurs see prospects for growth and expansion, and citizens understand that their knowledge and skills are in demand and can deliver tangible results – for the region, for the country as a whole, and for individuals themselves.
I repeat: the dynamics of the Far East’s key macroeconomic indicators continue to outpace the Russian average. This is precisely what we set out to achieve when we declared the region’s development a strategic priority for Russia throughout the 21st century. This is our shared success – a tangible result, the current culmination of systematic efforts by government agencies, businesses, entrepreneurs, and, above all, the people of the Far East themselves.
I would like to thank everyone who has contributed, and continues to contribute, to this major undertaking, so significant for our country. We also greatly value the participation of our foreign partners and investors who are channelling capital and technology into development projects, not only in the Far East and the Arctic but across Russia.
Today, we can confidently say that a solid foundation for the Far East’s accelerated growth has been laid. Its resource, industrial, and logistical capabilities have increased significantly.
Using this as the basis, we are proceeding to the next stage, the implementation of the updated Development Strategy for the Far Eastern Federal District for the next ten years, through 2036. Its key task is to maintain the high development speed, launch new investment cycles, and dramatically increase investment in three key areas.
The first sphere includes industrial, infrastructure, tourism, creative and other projects focused on domestic demand, on increasing the national market capacity, and the growing requirements of the Asian region as a whole.
Second, attracting funds to innovative companies, developing the infrastructure of the digital and platform economy, as well as implementing front-end technologies, including artificial intelligence, biotechnologies, new energy and other promising spheres, which must be done on the basis of the country’s most advanced regulation.
The third and basic priority implies new investments in education, healthcare, culture and sports infrastructure, village and city development on the basis of well-considered master plans, and the creation of a comfortable, modern and well-appointed living, working and recreation environment. These are not just words. We fully realise that it takes people to develop these industries and implement innovative projects. And modern and highly educated people will not live in conditions that do not meet their high standards.
To implement these plans, we need bold and innovative solutions and flexible approaches, including when it comes to updating our legal framework and improving the business environment.
A system of preferential regimes has been successfully tested in the Far East and the Arctic. This includes advanced special economic zones, the free port of Vladivostok, the special administrative region on Russky Island, and a special tax regime on the Kuril Islands. These instruments have been used to attract trillions of rubles in investment and create 200,000 new jobs.
Taking into account the accumulated experience, we are launching a business support system unprecedented in scale and scope. Starting January 1, 2027, a single preferential regime will be applied throughout the Far East and the Arctic. Under it, support instruments will not be linked to a specific special region or advanced economic zone, but will be tailored specifically for different types of activities throughout the Far Eastern region.
In other words, there will be a menu of privileges available for investment projects in any part of the Far East and the Arctic, including the full list of available mechanisms, such as reduced social security contributions, tax and customs benefits, assistance with connecting projects to infrastructure facilities, the construction of industrial facilities, and so on. At the same time, existing benefits will be preserved for the current residents of advanced special economic zones and the free port of Vladivostok.
I want to draw the Government’s attention to the following: both existing and new federal, regional and industry-specific preferences must complement rather than contradict one another so that businesses that apply for concessions do not have to face the risks of double taxation or extra charges. Please calibrate the legal framework respectively.
It is important to continue creating comfortable and predictable conditions for investors with due consideration for businesses’ demands and the needs of the regions, and based on Russia’s national interests. In this respect, I’d like to give a green light to the new convocation of the State Duma that will be elected quite soon, in September. I expect that deputies will show active interest and engage in constructive legislative work to improve the business climate.
I want to stress one more important aspect. As I’ve said, the conditions we are building for business development in the Far East and the Russian Arctic are unique – and not only for our country but in comparison with many neighbouring states of the Asia-Pacific region whose example we followed when we started this project in the Far East. However, the tax and customs concessions and the infrastructure support are not everything that the state can and should do to stimulate business activity.
It is also important to consistently remove bureaucratic barriers for businesses and relieve the administrative burden. It is harmful and even pointless to introduce tax concessions while clamping down on businesses with additional audits, excessive control and oversight – the key word here is “excessive”. That would reduce the overall effect for economic development and for the business climate to almost zero.
I believe our colleagues from competent ministries and agencies will hear this message and will respectively continue to improve their work by more actively using a risk-oriented approach, digital solutions, artificial intelligence, the internet of things, and other innovative technology for oversight activities. The legislative framework for this exists.
Now let us take a closer look at some key areas and projects for economic development in the Far East and the Arctic. For industrial growth and shaping high technology industries of the future, we need to solidify the very foundation, the resource base. Thus, expanding geological exploration in the east and the north of Russia, commissioning into service new mineral resources centres are already paying off. The country’s largest copper deposit, Udokan in the Trans-Baikal Territory, is being developed, as is the largest coking coal deposit, Elga in Yakutia. A large zinc and lead production facility – the Ozerny Mining and Processing Plant – is operating in Buryatia, alongside a number of world-class complexes for the extraction of iron, copper, and gold ores.
We will continue to develop mineral extraction in the east and north of the country, including oil, gas, coal, gold, and rare earth metals – using, of course, clean technologies, as is already being done at many of our enterprises.
I would like to emphasise that extracted resources must be increasingly processed locally, right here in the Far East and the Arctic. This applies to metallurgy, gas and petrochemical facilities, fertiliser production, and so on. It is vital to form value added chains here to create new jobs and to increase the revenues of regional and municipal budgets.
We also need to increase the capacity of high-tech industries, and this is a key focus. I am referring to shipbuilding and aircraft manufacturing, as I have already mentioned, as well as robotics, electronics, mechanical engineering, and the space industry, which is steadily advancing here – we have built the Vostochny Cosmodrome, and we need skilled personnel, whom we will train locally. Pharmaceuticals also fall into this category. Such traditionally important regional sectors as forestry, agriculture, marine resource harvesting, and aquaculture should also be given renewed impetus for growth.
For investors in such projects, and for those opening new enterprises in the Far East and the Arctic, it is important to ensure reliable sales channels for their products. To this end, offset contracts should be utilised – a new instrument developed with the support of VEB. The principle is that businesses investing in new production facilities are guaranteed long-term demand for their products from the state, regions, and municipalities. My colleagues and I discussed this yesterday at the customary pre-forum meeting.
Both the construction of new facilities and the modernisation of existing ones must comply with high environmental standards and rely on the most advanced technologies. The Russian Far East and our Arctic should be a space for bold engineering ideas, where the time from conception to practical implementation is kept to a minimum.
We are on Russky Island right now. The Innovative Science and Technology Centre here is part of a network of similar facilities in the country. It specialises in applied solutions for IT, biotechnology, biomedicine and other areas of expertise.
It is important to create conditions for attracting both Russian specialists and foreign scientists and engineers from friendly countries to these science centres and universities in the Far East, which includes providing accommodation, relocation packages, and assistance for their family members. I would like to ask the Government to consider a specific programme that would cover these needs.
Starting January 1, 2027, a special legal regime will be launched in the Far East to promote the use of modern technology in the economy, social affairs, and public administration. The regime will provide for speedy and barrier-free testing of the latest technology such as UAVs in agriculture, industrial robots, telemedicine or artificial intelligence for medical diagnostics.
I would like to draw our colleagues’ attention to the following: it is important to make sure that testing technology and applying it to real life would be as convenient as possible, without unnecessary runarounds or numerous approvals. And of course, feedback from innovative companies is important: what obstacles do they see that prevent the implementation of new technology? What regulatory changes are necessary?
Colleagues, what I said is important. There are many problems. Take drone operation, for example – I am not talking about military application, but their use in the economy. Regulation is complicated. It would be easier to master this technology on this vast territory. The Far East should become a region for testing this sort of new solutions.
I would like to add that a new federal law will take effect on October 1. The law will allow – for now as an experiment – to use extensively procurement platforms at the regional and local levels. This concerns not only the Far East and the Arctic but all other constituent entities. Local education institutions – kindergartens, schools and colleges – will be able to purchase goods directly from Russian marketplaces.
Our Russian colleagues here know the specifics of our regulatory base. Even purchasing pencils for schools is regulated, correct? On one hand, all these legislative norms are supposed to ensure transparency, eliminate corruption, and so on. But you all know, dear friends, that this is often connected with certain difficulties and limitations. We want to try a micro-reform that would allow many of our institutions to purchase what they need directly, without unnecessary delays. If they do it through marketplaces, it will, of course, minimise all sorts of risks associated with possible microcorruption, even microcorruption. I hope this project works out and we can extend it to the rest of the country.
This approach is intended for expediting procurement and making purchases cheaper and more convenient logistically. Furthermore, it would simplify the relationship between customers and vendors, removing unnecessary intermediaries.
Next. The key factor in technological, territorial, and industrial growth is the supply of electricity. Colleagues from the Government and the regions have already carried out a great deal of complex work, taking into account numerous factors, aligning industry plans, and preparing a comprehensive programme for the development of the energy sector in the Far East up to 2050.
Its objective is to increase energy capacity through environmentally friendly generation and to accelerate the connection to public gas grids in the Far Eastern regions. Separate, effective solutions have been devised for energy supply to remote areas. New generation facilities should appear in the Arctic zone, including small nuclear power plants, which have no equivalents anywhere in the world.
By the way, nuclear energy plays an important role in the development of the digital, platform economy, including artificial intelligence tools, as well as data storage and processing centres. We have plans to locate such centres in the Arctic and the Far East, and these are already being implemented; we will only intensify work in this direction. The key considerations here are security and high-speed data transmission. To this end, we are developing a quantum communications network, with Russian Railways as the parent company. They began this work some time ago and are making good progress.
Today, the length of the backbone quantum network in Russia already exceeds 7,800 kilometres. It connects 27 cities and regions, including 13 cities with populations of over one million. Let me stress: by 2030, quantum communications must reach the Far East, all its regional capitals, thereby bringing them into the high-speed information and data exchange loop. I would like the Government and our colleagues at Russian Railways to take note.
Modern, reliable infrastructure is the foundation of a new spatial model for the Far East and the Arctic. It will strengthen ties between Russian companies, both among themselves and with partners in foreign markets across the Asia-Pacific region.
We will expand the capacity of logistics hubs and transport links. The carrying capacity of the BAM and Trans-Siberian railways is already increasing, and port facilities, warehouses, and cross-border infrastructure are being modernised.
A very important initiative dedicated to tying together of the logistical space of the Far Eastern and Arctic regions is the Comprehensive Plan for the Development of the Arctic and the Trans-Arctic Transport Corridor. It is previsioned to last until 2050 and it outlines projects, domains, and avenues that need to be addressed. I am asking the colleagues to speed up the elaboration of this Comprehensive Plan and to get to the implementation of this plan.
I’d like to specifically cover the development of the Trans-Arctic Transport Corridor that runs from St Petersburg and Murmansk through the Northern Sea Route to Vladivostok and further to the countries in the Asia-Pacific Region. With the situation in the world as challenging as it is, when there are apparent risks for global maritime navigation and trade, the corridor is intended to ensure the flexibility and security of international supplies, opening new opportunities for transit and coastal shipping, and for continuous northern supplies to the Arctic regions.
Our goal is to make sure that the navigation on the route can continue all year round. To achieve this purpose, we are building icebreakers and ice-class vessels, service and rescue fleets. We are also expanding the satellite group and reinforcing ports, including Dikson, Pevek, Tiksi, Arkhangelsk and Sabetta. Work is underway across all these areas. In the same context, I want to mention a significant event that is coming soon. A main oil pipeline with connection to the new Bukhta Sever terminal will be launched soon at one of our largest Arctic projects, Vostok Oil in the Krasnoyarsk Territory. The first batch of oil will also be shipped via our polar maritime routes.
We also plan to integrate Arctic sea terminals with railways and inland waterways, to gradually connect cargo traffic from Central Russia, the Urals and Siberia. Of course, we want to deliver imported goods as well. Only recently, the first container carrier passed through the Russian Arctic from China to Murmansk. With our partners we plan to continue this work shortly.
Our general expectation is that by the end of this decade, the cargo traffic along the Trans-Arctic Corridor will amount to at least 70 million tonnes per year, or double the current level.
Clearly, major infrastructure and logistics projects require large investment. That means we need effective mechanisms to support private investment, including from our foreign investors and sovereign funds. The Russian Direct Investment Fund has successful experience in working with such partners.
To expand the participation of international capital in our Far Eastern and Arctic projects, we need to tap into the potential of the Eastern Stock Exchange. As I have said, we plan to build a modern financial centre on its basis. I would like to ask the Government and the Bank of Russia to work out the details.
The national public-private partnership standard will also be helpful in the implementation of infrastructure projects. It was developed with support from VEB.RF and took effect on September 1. The standard’s objective is to distribute the risks more efficiently and increase the return on infrastructure investment.
Moreover, to attract long-term money for public-private partnership projects, we have developed a long-term financing model, primarily by issuing concessional bonds. I’d like to ask my colleagues to monitor the performance of this model and calibrate it if necessary.
Today, I would like to talk about the transport of the future, which is particularly important for the Arctic and the Far East. I am referring to autonomous unmanned systems for transportation by land, sea and air, including in remote and hard-to-reach areas.
The low altitudes are becoming a very busy transport artery rivalling both railways and waterways. And we already need to create standards for autonomous shipments of civilian cargo using drones.
Approaches to developing what is essentially a low-altitude logistics system for the economy will be worked out as part of a dedicated project involving the Ministry of Transport, the Russian company GLONASS, and our Chinese partners. As I understand it, this joint initiative was launched today on the sidelines of the forum.
Of course, at the same time, we must harmonise regulations governing the operation of autonomous unmanned systems and develop new cross-border routes with countries in the Asia-Pacific region, BRICS, and the Eurasian Economic Union. We are open to cooperation with all our partners in this area.
Colleagues,
The Far East and the Arctic are undergoing dynamic change, not only in terms of economic growth, logistics, and technological development. Our most important task is to ensure a high quality of life for people in major industrial centres and regional capitals, as well as in small towns and rural communities. We must consistently develop modern infrastructure, build new roads, schools, hospitals, cultural and sports facilities, and improve parks and waterfront areas. Together, these efforts create an integrated environment for family life and recreation, for the development of children and young people, and for people of all generations to fulfil their potential.
Master plans have been developed for 22 cities and urban agglomerations in the Far East, while another 15 such strategic documents have been prepared for key communities in the Arctic. These plans establish a comprehensive vision for the development of cities and territories, shaping their social and economic landscape and determining what new jobs will be created.
The master plans were drawn up with input from local residents and the involvement of economists, architects, urban planners, demographers, and other experts. This is a complex but absolutely sound and necessary approach. Only by bringing together the expertise and efforts of specialists from different fields and responding to the needs of local communities can we effectively develop networks of clinics and hospitals, schools and kindergartens, modernise public transport and housing and utility infrastructure, support small and medium-sized businesses, and address environmental challenges.
More than 400 projects under the Far Eastern and Arctic master plans are currently at the design and construction stages, while around 300 have already been completed. These include new airports in Magadan, Blagoveshchensk, and Petropavlovsk-Kamchatsky; 15 outpatient clinics and hospitals, including facilities in Vladivostok and Neryungri; more than 90 schools and kindergartens; and new, welcoming parks and recreational areas, such as the embankment in Komsomolsk-on-Amur, Mayak Park in Magadan, and Bagulnik Park in Tynda.
I would also like to note that the master plans have made possible the opening of a modern oncology centre in Yakutsk and a state-of-the-art nuclear medicine centre in Ulan-Ude. Residents of these cities and regions can now receive high-quality specialised medical care and undergo examinations close to home – services that were previously unavailable locally and required them to travel to Moscow, St Petersburg, Novosibirsk, or other major cities.
It is encouraging that, according to surveys, more than half of the residents of the cities and urban agglomerations where master plans are being implemented have noted positive changes – in other words, they have a favourable view of the work being carried out. There should always be this kind of feedback, and I want to draw the attention of my colleagues in the regions, the Government of the Russian Federation and municipalities to this. It is people’s assessments that should be taken into account when calculating the quality-of-life index and assessing how successfully cities and settlements as a whole are being planned and developed.
By 2030, at least 200 master plans are to be drawn up across the Russian Federation, and, of course, their implementation requires a solid legal foundation.
I said 200 plans. Is that a lot or a little? We will gradually scale things up. At present, there are 22 plus 15; there will be 200, and then we will keep moving forward. What has been accomplished so far shows that we are on the right track and are achieving the goals we have set ourselves. We will continue working in this way.
The draft law on master planning, which is eagerly awaited by the regions, businesses and experts alike, is, as they say, on the home stretch. I expect it to be adopted by both chambers of the Federal Assembly by the end of this year.
At the same time, we need to develop special solutions for small towns, settlements and villages where there are no master plans. Here, we can make use of digital tools and software, including solutions based on artificial intelligence.
Returning to the master plans for the Far East and the Arctic, I would like to stress that we will certainly continue implementing them. At the same time, I suggest that we consider additional sources of funding for these plans.
Over the next four years, the regions of the Far East and the Arctic will have to repay 53 billion rubles to the federal budget. This concerns the repayment of infrastructure treasury loans. A decision has already been taken nationwide to reinvest such loans as they are repaid. I ask the Government to consider an option whereby the Far East and the Arctic could direct these funds towards infrastructure projects included in their respective master plans – in other words, invest them in the development of cities and territories and in improving people’s quality of life precisely here, in the Far East and the Arctic.
In addition, master plans need to draw on the resources of development institutions, including bond financing raised by DOM.RF project-finance companies. This is also important for stimulating housing construction. Over the past six years, incidentally, housing completions in the Far East and the Arctic have roughly doubled. Last year, they reached 5.3 million square metres.
Special mortgage programmes with an interest rate of 2 per cent have, of course, helped here. Today, one in two new-build flats in the region is purchased with this subsidised mortgage – one in two. This is undoubtedly a measure that is stimulating housing construction in the region. Overall, 220,000 families have already improved their housing conditions with its help.
Resolving the housing issue plays an important role in demographics. Additional measures to support the birth rate are in place in the Far Eastern Federal District. These include a one-off payment for the first child equivalent to two subsistence minimums, as well as regional maternity capital when a second child is born. This amounts to 30 percent of the federal maternity capital. This is good support, and I would like to thank my colleagues in the regions for this. In addition, when a third child is born, most Far Eastern regions add another 550,000 rubles to the federal payment of 450,000 rubles. This brings the total to one million rubles, which can be used to repay a mortgage. And I should say that it works.
I propose extending the enhanced payment for the birth of a third child in the Far Eastern regions until 2030.
What else would I like to highlight? Thanks to the master plans, the so-called creative industries are developing in cities in the Far East and the Arctic, including animation, film-making, jewellery and traditional crafts. Unique products drawing on local character and regional traditions are being created, and they are in demand, including among our foreign friends.
For example, Yakutsk has a creative cluster called Kvartal Truda. Similar facilities are being built in Ulan-Ude, Blagoveshchensk and Vladivostok. The Amur Technopark has been launched in Khabarovsk. The concept for an Anadyr creative cluster is also under discussion. Some of my colleagues told me about similar plans yesterday. These are genuine centres of attraction for small but highly promising businesses. And we will help creative industries in the Far East and the Arctic to scale up their initiatives. To this end, we will create a comprehensive support ecosystem, including production facilities, financial instruments, channels for cooperation with foreign partners and platforms for intercultural dialogue, such as the Soul of Russia project.
And there is another attractive sector based on local identity and uniqueness – tourism, of course. One in every ten projects currently being implemented with state support in the Far East and the Arctic is in the tourism sector. More than 400 agreements have already been signed for the construction of ski resorts, hotels, holiday centres and glamping sites. Year-round resorts are being developed, such as the Baikalskaya Gavan resort in Buryatia and a seaside resort in Primorye. The Three Volcanoes tourism park is being built in Kamchatka. The first year-round ski resort in the Far East will soon open in Arsenyev.
I am convinced that thanks to this systemic approach that we are implementing right now, the nature of the Far East and the Arctic, the seas, the natural reserves, and national parks will be more accessible for an increasing number of tourists, both from Russia and other countries. There is certainly much to see here. In that regard, I would like to say that this is a unique region with a unique type of nature.
In this context, protecting public health, ensuring environmental wellbeing, and preserving nature are of particular importance and remain among our key priorities. As I have already noted, we will ensure compliance with stringent environmental requirements and standards in the construction of infrastructure and industrial facilities and in the development of new deposits. We also intend to further reduce harmful emissions in the industrial centres of the Far East. The Arctic “clean-up” will continue, with old equipment and other debris accumulated over decades being removed and areas affected by accumulated industrial waste and landfills being cleared.
We will pay particular attention to protecting sensitive ecosystems such as Lake Baikal and our great Far Eastern rivers, the Amur and the Lena, as well as to preserving the Amur tiger, the Far Eastern leopard, and other rare species as part of the unique natural heritage of the region and the country as a whole.
I was here recently, and thanks to the Governor, who arranged for me to spend a couple of days here, I had an unforgettable experience that I cannot help but share. We were driving through the forest when a tiger emerged, walked right in front of our car, wagging its tail, and showed no intention of moving aside. He was clearly the master of the taiga. It was fascinating to see first-hand the natural riches of this region.
Friends,
The ambitious strategic plans we are implementing in the Russian Far East and the Arctic are, of course, supported by strong business activity and genuine interest among companies, including foreign businesses, in the enormous opportunities offered by our Far Eastern and northern regions.
The Eastern Economic Forum itself is clear evidence of this interest and of the business community’s willingness to launch investment projects and pursue promising and commercially viable initiatives. Last year alone, more than 300 agreements across various sectors, with a total value exceeding 6 trillion rubles, were signed on the sidelines of the forum.
I am confident that this year’s forum will contribute to the sustainable, long-term development of the Russian Far East and the Arctic, improve people’s quality of life, and strengthen international cooperation and mutual trust.
I wish all participants and guests of the forum every success and all the best.
Thank you for your attention.
Kirill Tokarev: Mr President, while the next speaker is preparing to deliver his address, I would like to ask you several follow-up questions.
Vladimir Putin: You are welcome.
Kirill Tokarev: Support measures for the Far East have proved effective, as you have exhaustively said. I can’t argue with that. The region’s development strategy is clear as well. But the problem is, as usual, in resources. They are a complicated matter, we are living in challenging times, and the budget situation is not simple either. The federal budget deficit has closely approached 7 trillion rubles (our colleagues in the room can correct me if I’m wrong) and can rise above 3.8 percent of the federal budget by the end of the year, if memory serves. Some experts, including those who attended our shows, say that the deficit can exceed 10 trillion rubles. The role of federal funds in the region’s development is extremely important. Do we have the necessary resources to maintain the level of investment in the region?
Vladimir Putin: What matters most is not state investments or state resources but private investments. The task of the state is to create conditions for such investments. The volume of investments has recently gone down for a number of reasons, including and primarily because of the deliberate policy of the regulator – the Central Bank – and the Government of Russia. The goal is to suppress inflation. We could not allow it to soar; there was such a danger. Today, our year-on-year inflation is 6.3 percent. We are working towards our goal.
It is important not to overcool the economy, as we all know. We knew this since the start of our efforts, and we acted accordingly. Opinions on this matter differ. Some say that it is time to start a new cycle, to give our economic policy more momentum, and so on. You can talk about this with experts forever, but our main task is to create conditions for private investments.
As for [budget] deficit and surplus, it is cyclical. We used to have a surplus budget, and we nevertheless talked about creating conditions for private investments. We have a budget deficit now. However, I am confident that we will gradually solve these problems, primarily by maintaining a healthy macroeconomy.
Kirill Tokarev: Do I understand correctly that the current level of the federal budget deficit is quite comfortable for the Russian economy? And the issue only concerns cutting certain support measures… We are not only talking about the Far East but about supporting small and medium-sized businesses in infrastructure construction. For example, building a bridge between the mainland and Sakhalin Island is a perennial issue. I understand that the region needs it and it will be built someday. But is the time right for this now? Maybe we should start saving more funds?
Vladimir Putin: This is not so much about skimping; it is about spending wisely and choosing priorities.
You have mentioned the budget deficit. Yes, there is a deficit but it is not critical. Three is nothing critical about it, considering that we have one of the lowest government debts in the world. We are trying to act carefully, without straining the financial system, especially private banks, with state borrowing, because this would leave less funds for businesses. This requires a delicate policy, which we are trying to pursue.
Overall, I believe that the Government and the Central Bank are so far managing to steer between Scylla and Charybdis, which will produce the desired effect about which we talked when we launched this process a year and a half or two years ago.
Kirill Tokarev: We will certainly return to the conversation about private investment and investment sources in general. We will talk about the re-launch of the investment cycle that you announced.
And now I would like to give the floor to our guests and welcome President of the Republic of Indonesia Prabowo Subianto who will give his remarks.
President Subianto, the floor is yours.
President of the Republic of Indonesia Prabowo Subianto:
Your Excellency President Vladimir Putin, President of the Russian Federation,
Excellencies Heads of State and Government,
His Excellency the Prime Minister of Mongolia, Mr Nyam-Osoryn Uchral,
His Excellency the First Vice President of the Republic of the Union of Myanmar, Mr Nyo Saw,
His Excellency the Vice Premier of the State Council of the People’s Republic of China, Mr Ding Xuexiang,
Ladies and gentlemen,
First, I would like to thank President Putin, the Government of the Russian Federation, and the Roscongress Foundation for the honour of inviting me to be present and to address this forum.
Mr President, it feels like only yesterday that in June last year you invited me to speak at the St Petersburg International Economic Forum, SPIEF. Then I called SPIEF the meeting heart of the world’s emerging multipolar economy. Here in Vladivostok, we stand at the Pacific gateway.
I became President of Indonesia – a country of 290 million people – almost two years ago. However, this is already my second visit to Russia this year. But in fact, this is the fifth time since I became President of Indonesia that I am meeting President Putin. I look forward to returning the hospitality granted to me by Russia and to welcoming President Putin and many of you in Indonesia.
Today, I will explain to you, distinguished delegates to the 11th Eastern Economic Forum, why Indonesia – situated between the Indian and Pacific Oceans – is trying to build a stronger bridge to the Russian Far East and to the Eurasian Economic Union.
The Russian Far East and Indonesia are both very vast – it takes many hours to fly from one end of our territories to the other. We know that the capital city can sometimes feel very far from the frontier communities. But Vladivostok also feels rather close to my home. The same great ocean, the Pacific Ocean, touches the shores of Russia and also touches the shores of Indonesia. The Pacific Ocean does not separate us. The Pacific Ocean connects us. It is not a wall between us. It must be a highway between our two economies.
Excellencies,
the theme of this forum is The Far East: Development for the Benefit of the People. I must tell you that this is not only the theme of the Russian Far East – it is also the mandate given to me by the people of Indonesia.
Last year in St Petersburg, I explained Indonesia’s economic philosophy as realism, pragmatism and the pursuit of the greatest good for the greatest many.
We believe in enterprise, initiative, creativity, and innovation, but we also believe that government must protect the weak, must manage national resources well, must fight corruption, and must invest in the long-term needs of the people and the nation. That is what development for the benefit of people means to Indonesia: the greatest good for the greatest many.
Development cannot only benefit the few. Development must be measured at the dinner table of ordinary families – whether children receive nutritious food; whether farmers can obtain fertiliser and sell their produce at fair prices; whether families can live in decent homes; whether young people can find productive work; and whether electricity can reach every home in every village.
This is why Indonesia is providing free nutritious meals for all our children and for their pregnant mothers. This is why we are pursuing food self-sufficiency and energy security. This is why we are accelerating downstream industrialisation so that our natural resources can create industrial skills and good jobs at home. This is why we seek faster economic growth – not growth just for growth’s sake, but growth that can lift millions of people out of poverty into dignity.
This forum is essentially asking the same fundamental question as the one asked of me by my people: how can the great wealth of a region translate into a better life for the people who live there? The economies of Indonesia and Russia are not mirror images. I believe that is precisely why they can fit together to work.
Russia has wheat, fertiliser, energy, science, and advanced engineering. Indonesia has palm oil, fisheries, coffee, rubber, textiles, furniture, consumer goods, a young workforce, and a gateway to the 680 million people of ASEAN. One side’s strengths can answer the other side’s needs. This is the foundation of fair and durable trade.
The results are already visible: last year, in 2025, our bilateral trade approached $5 billion – an increase of 21.7 percent compared to 2024, and an increase of 33.7 percent compared to 2023. This achievement is just the beginning; it is not a ceiling.
Here in this forum, I propose that Indonesia and Russia set a clear challenge to ourselves – to double our trade within the first review period of the Indonesia-Eurasian Economic Union Free Trade Agreement. This rise will be driven by complementary economies, the expected entry into force of the Indonesia-EAEU Free Trade Agreement in early 2027, and, perhaps most importantly, closer ties between our business communities.
For Eurasian businesses, Indonesia is a natural entry point to ASEAN. We are the region’s largest market and a hub of the Regional Comprehensive Economic Partnership (RCEP) and now a free trade partner. Southeast Asia was not always peaceful – our region experienced conflicts, tensions, and deep differences. But then our leaders recognised that poverty, limited healthcare and education, inadequate infrastructure, and the need to create opportunity were challenges larger than any one of us. So ASEAN chose consultation over confrontation; cooperation over division.
For almost six decades, that choice has created a peace dividend: farmers can produce; factories can operate; ships can sail; businesses can invest; children can go to school; families can plan for the future. Indonesia now invites Russia and every EAEU member to help extend that peace dividend by connecting Eurasia more closely with Southeast Asia.
The Indonesia-EAEU Free Trade Agreement was signed in St Petersburg on 21 December 2025 by Indonesia; the Union; its five member states (Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia); and the Eurasian Economic Commission. It commits my country and the EAEU to eliminate or reduce duties on 11,882 tariff lines – more than 90 percent of all goods being traded.
Indonesia completed parliamentary approval of this FTA, and last July I signed the presidential regulation of ratification. Let me state our intention plainly: Indonesia wants this agreement in force and in use as soon as the exchange of notifications allows. I respectfully call on every EAEU member state to complete its internal procedures so that we can make use of this agreement as soon as possible.
This agreement is South-South trade architecture. It opens five markets to Indonesian producers and gives Eurasian producers access to more than 290 million Indonesian consumers.
Indonesian business delegations are here today to conclude pilot shipments, name buyers, secure logistics, and settle compliance and payment arrangements that make use of this FTA. It is my intent that when the tariff schedule opens, the goods, routes, and contracts must already be in place. This forum must become the marketplace of the agreement.
Excellencies, Russian and Indonesian business delegations are moving intensively in many directions. Each visit produces introductions, leads, trust, transactions, and relationships.
Since St Petersburg last year, the circle of trust has grown. The task before us is to turn personal trust into institutional trust: clear rules, reliable payments, predictable logistics, and agreements that survive changes of officials.
I believe in this forum we can establish competitive direct shipping between Vladivostok and Indonesia with predictable schedules, cost, insurance, and cargo in both directions.
And let us be equally practical about people. Direct flights would bring Russian visitors to Indonesia and Indonesian visitors to the beauty of the Russian Far East. Ships move goods – aircraft move friendship.
Excellencies,
Our future cooperation can be much larger than trade in goods. In energy, Indonesia welcomes Russian cooperation that raises the productivity of oil and gas exploration, production, and processing. We seek knowledge and investment in renewable energy, smart grids, and peaceful nuclear power, including modular and full-scale technologies under the highest safety standards and international safeguards.
In food security, we see opportunities in working with Russia on agricultural technology, superior seeds and livestock breeding, farm mechanisation, food processing, and the joint production of fertiliser. In industrialisation, we could find value together.
Indonesia welcomes partnerships in downstream processing and in the goods our citizens use every day – food, household products, clothing, furniture, pharmaceuticals, and consumer electronics. We also welcome Russia-Indonesia cooperation in space, higher education, and transport.
So I say directly to Russian businesses: come to Indonesia, work with us, produce with us, let us build a new system together, let us create value together, and from Indonesia let us reach the wider markets of ASEAN and the Indo-Pacific together.
Indonesia has established Danantara – Indonesia’s sovereign wealth fund with $1 trillion of assets under management. Danantara could act as a bridge where Russian and Indonesian capital markets and strategic goals could meet. Danantara and the sovereign wealth fund of Russia, the Russian Direct Investment Fund (RDIF), can move from identifying possibilities to financing bankable projects. Every agreement announced must pass value, financing, and delivery milestones.
Distinguished participants,
we meet at a difficult moment. Today, trade is many times used as a weapon. Supply chains are redrawn by suspicion. Finance is divided by geography. Precisely because the world is fragmenting, every bridge built here – in food, energy, science, logistics, and trade – is a practical answer. In global finance, resilience requires more than one functioning system. We should not rely on a single financial architecture, because if one system is disrupted, another must remain able to facilitate the flow of funds that keeps trade moving. Without reliable payment and settlement channels, trade itself can be paralysed. This is not about replacing one system with another, but about ensuring that another global financial system can operate alongside existing arrangements to preserve continuity, stability, and confidence in international trade.
Indonesia’s foreign policy is free and active. We determine our own national interests and we want to contribute actively to peace. At SPIEF last year I said to you: Indonesia does not want to join any military alliance, but we seek to join economic alliances. Our FTA with the EAEU is exactly that – not an alliance against anyone, but a partnership for the prosperity of everyone.
Indonesia works to the east, west, north, and south as a sovereign and equal partner. For us, a thousand friends are too few – one enemy is too many.
We come to St Petersburg to make friends, and now we come to Vladivostok to turn friendship into pragmatic results.
The Global South is not a new bloc – it is a constituency for fairness, for a fair share of prosperity, and for a fair voice in writing global rules. Our position is clear and consistent: Indonesia stands ready to support every sincere effort towards a just and lasting peace wherever conflict proceeds. Indonesia and Russia have been friends for many decades. Indonesia remembers the support of the then Soviet Union during the early years of our young republic. We remember that history and we never forget our friends.
But friendship cannot live only in history. Our generation must have the courage to write a new chapter. Let us be equal, let us be independent, let us work together mutually for the benefit of both our countries. And let us be measured by what our efforts can deliver for our peoples.
Peace is not separate from development. Hunger, unemployment, injustice, and humiliation are the raw materials of conflict. The Far East that provides opportunity, countries that feed their children, and an Asia-Pacific that trades openly – these are real and durable contributions to peace. Sovereignty makes peace possible. Peace makes development possible. And development for the benefit of people makes peace endure. That is why the theme of this forum is not merely an economic slogan. It is actually a doctrine of security.
Participants, distinguished Excellencies,
I understand that the Russian people have a saying: Odin v polye ne voin – one man cannot fight alone. There can be no victory if you fight alone. In Indonesia we have the same saying. We say: gotong royong – any heavy burden becomes light when we carry it together. We have different languages, but we have the same ancient wisdom from our forefathers. Everything we have discussed today – the tariff lines covered by the FTA, transport corridors, payment systems, industrial projects – exists for one reason: so that a fisherman in Indonesia and a shipbuilder in Russia can each look at their children and believe that tomorrow will be better than today.
Our young people will not ask which bloc we belong to. They will ask what we built for their future. Let us build the direct shipping route. Let us open the direct flights. Let us make our FTA work from its very first day. Let us double our trade. Let us produce food, fertiliser, energy, medicine, and technology together. Let our sovereign wealth funds – Danantara and RDIF – finance strategic projects together. And let us ensure that every agreement announced in Vladivostok produces a result that our people can see and can feel. Let it be said of this forum that in a season when some others were building walls, we built bridges.
And let it be said of our generation that in difficult times, we chose cooperation – development for the benefit of our peoples. We chose the greatest good for the greatest many. And by doing so, we helped to build lasting peace and prosperity.
Thank you. Terima kasih. Spasibo bolshoye. May peace be upon us all. Thank you.
Kirill Tokarev: President Subianto, first of all, thank you for such a poetic and colourful speech, for your knowledge of Russian folklore, proverbs and sayings. Building bridges is truly important. I apologise but I have some specific questions, and your remarks were also quite specific, with some very particular proposals, for which we are very grateful.
The free-trade agreement with the EAEU that you signed last December, if my memory serves me right, was designed, as far as I know, to double free trade between Russia and Indonesia under the growing pressure from Washington – which is no secret to anybody present here. Hence my question: how do you search and find balance, on one hand, between your obligations to your Western partners and, on the other hand, deepening cooperation with Russia, Eurasia, and so on? And what level of integration with Russia do you hope to achieve? You mentioned transactions and said that trade must not be weaponised; that you should not rely on any single financial system and that you plan to adopt national-currency payments and change your approach to payments in general. Anything else?
Prabowo Subianto: Thank you. Thank you.
Indonesia has been very open for many, many decades. We are open, and our policy – we always say – is that we want to have the best relations with all countries, with all great powers. We are, by tradition, non-aligned – as I said, we don’t belong to any military alliances. We respect all powers. Economically, we are also independent, and we want to work with all our friends, with all countries. This is very open – from day one of all our negotiations with all our partners, they know this. And we are offering fair trade, so we don’t see any real problems for us.
But as I said, since we are very open, everybody knows – all sides know – that we will not work with one group against the interests of other groups. We will treat everyone who wants to come to Indonesia fairly. We will give the same treatment to all peoples who come to Indonesia. And we negotiate – we do not want to threaten anybody. So that’s our position.
And as I said, our relationship with Russia is very long – a long relationship, you know. And we are very open. We said that when we were weak, when we were a young republic, nobody really thought much about us. At that time, it was the Soviet Union, and they helped Indonesia when we were very weak. So, everybody knows this history, and we are not shy of this history.
Thank you.
Kirill Tokarev: Thank you very much.
Vladimir Putin: Before entering this hall, I and my colleagues were sitting in a lounge where we exchanged opinions on what we were going to say. I spoke more about the Far East. You know what I noticed? Yes, there are giants like China and India with 1.5 billion people and 1.3 billion. But I want to point out that Indonesia is not only the largest country with the largest Islamic population but it is also among the largest countries in the world with almost 300 million people. You see? Those who try to impose their policy on any part of the world, they can never ignore that.
Kirill Tokarev: Mr President, if I may, I’d like to ask you some questions regarding demographic issues – of the Far East, of course, but we can extend it to the rest of the country since the Far East is its integral part.
As a Russian macroregion, The Far East is among the leaders for the scope of investment. New housing is under construction; cities are growing as is the quality of life. The list goes on, and you gave us plenty of details. The birth rate is above the national average if I’m not mistaken. However, the region’s population remains stagnant and, according to some statistics, is actually in decline. I don’t know if these statistics are trustworthy but that’s what they say.
Why aren’t the economic growth, growing investment and other positive factors translating into demographic growth and what can we do about it?
Thank you.
Vladimir Putin: You have said that population growth here is higher than the national average, which means that they are. This is the first point.
Second, the situation is the same across the entire post-industrial world. Of course, we are not satisfied with the current birth rate. But the situation in the region we are in now is not the worst at all. You know that South Korea’s birth rate is 0.7, less than half of ours, and it is approximately the same fertility rate in Japan.
This does not mean that we should take this as a benchmark. We should take the best figures as a benchmark, and we striving for it. As I said – and you have confirmed it – it is an objective fact that the fertility rate here is higher, if only a little, and we must ensure that the national average is at least as high as in the Far East, while the birth rate in the Far East goes even further. We are implementing a childhood and family support programme towards this goal. I will not enumerate all the relevant support measures; I have mentioned some of them, and there are more of them here than across the country in general, as I have said. Direct family support is one of the components.
Another element is the creation of conditions for developing the economy and improving the standards of living. Another issue, which has also been mentioned here, provides for strengthening the social sphere as one of the three development components in the Far East. Master plans have been prepared for 22 Far Eastern and 15 Arctic core towns, and there will be 200 towns in total. We will focus on this to create comfortable living conditions. I hope that this, along with healthcare, education and a good pay, will produce the effect we are seeking.
We turned the tide in the 2000s, we had notable growth in the fertility rate, which means that we have done this before and we are sure to do this again.
Kirill Tokarev: Mr President, I have a small but a more general question: birth rate data have not been available for journalists, economists, statisticians and other professionals since 2025. We know that the special military operation is underway, there are a great many challenges, and our enemies might use demographic information against us. But is the birth rate really a national security threat?
Vladimir Putin: Yes, it is, and that is how we regard it. The special military operation is affecting it, but there is more to it. There is no special military operation in Japan or South Korea, but the birth rate there is lower in in our country. Therefore, we should consider all factors, yet the military operation is not a major one. What matters most is what I have already mentioned – the creation of necessary conditions, especially relevant incentives for families and young women. Our women now consider it possible or appropriate to have their first children at around 29 years, the same as in Western Europe. They take some time raising their first child, and then they have no time left to give birth to a second child. Do you see? So, there is a great deal to do to change society’s attitude toward the number of children a family should have, the overall policy of the state, the information policy, and so on. It is a very big and complex block of questions. Actually, demography is something on the borderline between science and art. Therefore, we must work together to identify the key milestones and touchpoints.
We know very well that the birth rate is low in post-industrial societies and high in countries with a relatively poor population. So, what is the answer? Regrettably, there is no direct answer yet. But we must move forward rather than backward, and we will do everything we can to raise our rating. This is one of our main challenges. We will work on it, of course.
Kirill Tokarev: It looks like people in the Far East are leaning more towards art since they have higher population replacement rates.
Friends, let’s continue. I’d like to give the floor to Prime Minister of Mongolia Nyam-Osoryn Uchral.
Prime Minister of Mongolia Nyam-Osoryn Uchral (retranslated): President Vladimir Putin,
Heads of state and government,
Ladies and gentlemen,
First of all, please accept heartfelt greetings, wishes of prosperity and all the best from the Mongolian nation. I am glad to be taking part in the annual Eastern Economic Forum here in the Far East, a region that holds a special place in the Asia-Pacific as one of the new centres of global economic growth.
My sincere gratitude goes to you, Mr Putin, for inviting Mongolia to attend such an influential forum. This year’s gathering, under the meaningful tagline of The Far East: Development for the Benefit of the People, remarkably reflects the idea that the end goal of development is to benefit an individual, help them build a decent life and enjoy future opportunities.
For us, development goes beyond higher economic indicators. It is about improving the quality of life for every citizen, strengthening the younger generation’s faith in their future, and building mutual understanding and trust between countries.
This is why expanding cooperation in trade, investment, transport and logistics, energy, technology and human development, and strengthening economic ties in the region are the interests we all share.
Ladies and gentlemen,
The international relations and world economy today are going through harder challenges than ever before. Price fluctuations, supply chain disruptions, transport and logistics issues, payment system changes – all these factors pose new challenges for the long-term development of a state. At this time, we should refrain from highlighting our differences but instead find common ground and strengthen our ties on the basis of mutual trust and equality.
Mongolian people have long said: “Unity is power.” These words of wisdom are gaining more value today in the context of relations between states and nations. If we respect our agreements and value our common interests, our joint efforts will make a fitting contribution to peace and sustainable development of the region.
Mongolia consistently pursues a peaceful, open, independent and multi-faceted foreign policy. We believe that cooperation based on respect for countries’ sovereignty and independence constitutes an important condition for peace and steady progress in the region.
Boasting a unique geographical location, natural wealth and young talents, Mongolia is actively involved in regional economic integration. Our goal is to become an important regional hub for transport, logistics, energy, trade and investment.
Our country’s sustainable economic growth, along with the advancement of major strategic projects, will lay the foundation for increased productivity in exports, manufacturing, and services. The benefits of economic growth must be effectively translated into jobs, higher family incomes, greater opportunities for businesses, and an improved quality of life for our people.
Mongolia has made human development one of the key objectives of its long-term development policy. Through its action programme, the Government is implementing policies aimed at creating conditions for people to live healthy and fulfilling lives, receive a quality education, engage in decent work, and enjoy a safe and comfortable living environment.
Ladies and gentlemen,
Economic freedom is a solid foundation for human wellbeing, business development, and creative initiative. Without eliminating excessive red tape, duplicative regulations, unnecessary permits, and barriers to entrepreneurship, it is impossible to achieve genuine economic growth and competitiveness. Therefore, the Mongolian Government is implementing the national Liberate initiative and the Four Paths to Freedom policy, gradually removing barriers for entrepreneurs, investors, and producers, streamlining government intervention, and focusing on unlocking the creative potential of the private sector, increasing investment and productivity, and creating jobs.
The adoption and implementation of the economic freedom package of laws will open up new opportunities for the business environment, including stronger protection of investors’ interests, the creation of conditions for resolving disputes through international arbitration, expanded opportunities for attracting investment through the stock market, and a gradual reduction in restrictions on foreign investment in certain sectors. I believe this is clear evidence of Mongolia’s commitment to making its economy more open, competitive, and attractive to investment.
At the same time, we believe that the development of artificial intelligence, advanced technologies, innovation, and engineering skills among the younger generation is an essential component of human development policy. We have enormous opportunities to expand exchanges among young specialists, scientists, and researchers from the Far East and the Asia-Pacific region, and to jointly train the personnel needed for future development, including in green technologies, industry, transport and logistics, and agriculture.
Ladies and gentlemen,
Mongolia values and develops comprehensive strategic partnerships with its long-standing neighbours, Russia and China. The consistent expansion of mutually beneficial trilateral cooperation is a priority of Mongolia’s foreign policy. This includes promoting the Mongolia-Russia-China Economic Corridor project and improving cross-border trade and transport connectivity.
Enhancing infrastructure connectivity constitutes a significant step towards consolidating the region’s economic interdependence. The modernisation of the central railway corridor, the development of the road network linking the three countries, cross-border transport infrastructure, the expansion of capacity at border crossing points, and digitalisation of customs operations – all these measures create genuine opportunities for expanding trade, reducing transport times and costs, and making supply chains more reliable.
As the Mongolian proverb says: “On a long journey, one needs a companion.” In much the same way, the development trajectories of nations today increasingly demand cooperation, mutual trust and neighbourly relations. Every railway and motorway that unites us, and every energy or trade corridor, should serve not merely as conduits for the transit of goods, but as bridges fostering mutual trust, shared development and friendship between our peoples.
The project to deliver Russian natural gas to China via the territory of Mongolia heralds new strategic prospects for economic relations among the three countries and holds every prospect of becoming an undertaking that brings long-term reciprocal benefit in the of energy, transport and infrastructure, investment, and the training of skilled personnel. We intend to advance this and other major projects, guided by the principles of mutual benefit, economic efficiency and long-term sustainable development.
At the same time, expanding trade and economic cooperation between Mongolia and the Eurasian Economic Union and its member states is essential for opening new markets for Mongolian producers and exporters, diversifying their export range, and developing value-added production. We are confident that further enhancement of trilateral cooperation mechanisms, the implementation of economic development projects, and giving practical substance to cooperation in cross-border trade, transport logistics, energy, green development and innovation will make a tangible contribution to the sustainable development of the Eurasian region.
Ladies and gentlemen,
Common challenges such as climate change, desertification, land degradation, and food and water security recognise no state borders. Accordingly, I am convinced that the exchange of experience and expertise in environmentally friendly technologies, renewable energy, and the responsible and efficient utilisation of natural resources, as well as joint action at the regional level, constitute our shared responsibility.
Mongolia is implementing such nationwide initiatives as the Billion Trees, Food Revolution, and White Gold campaigns, while expanding international and regional cooperation to combat desertification and land degradation and to build a sustainable food system.
It is gratifying to note that just a few days ago, we successfully hosted the 17th session of the Conference of the Parties to the United Nations Convention to Combat Desertification (COP17). It is particularly important to us that the conference provided a platform for an open international discussion on how to reconcile economic growth with environmental sustainability, food security, and quality of life. This is fully in line with our vision of people-centred development.
President Vladimir Putin,
Ladies and gentlemen,
The 11th Eastern Economic Forum is becoming an important platform for opening up new opportunities for human wellbeing, sustainable development, and economic cooperation not only in the Far East, but also across the Asia-Pacific region and the vast Eurasian space.
I hope that every initiative and draft decision discussed here will bring tangible benefits to people’s lives, strengthen mutual trust among countries, and contribute to long-term and sustainable cooperation. Mongolia is always ready to make its contribution to such cooperation. Mongolians have a long-standing saying: “Neighbours think alike.” This wisdom reflects the value of the relations between the Mongolian and Russian peoples, who have lived side by side for centuries, cherishing the traditions of good-neighbourliness and mutual respect.
We must further strengthen this priceless legacy of trust, friendship, and mutual respect, and pass it on to future generations.
President Putin,
Let me once again express my sincere gratitude for inviting Mongolia to participate in the Eastern Economic Forum, as well as for the warm welcome and hospitality. I wish you and all the people of Russia health, happiness, prosperity, and all the very best. May the traditional friendship and good-neighbourly trust between the Mongolian and Russian peoples grow stronger from generation to generation, and may cooperation between our two countries continue to expand and bring prosperity to their citizens.
We wish you every success in the work of the 11th Eastern Economic Forum.
Thank you for your attention.
Kirill Tokarev: Mr Prime Minister, just one question – also concerning the future of relations between our two countries, a future which I am sure is bright. Let’s turn to specifics. On July 22, the interim trade agreement between Mongolia and the Eurasian Economic Union entered into force. Have you seen any early results from this step yet? It is clear that it has only been a short time, but still – what level of integration and further cooperation with both the EAEU and Russia are you hoping for in the coming years?
Thank you.
Nyam-Osoryn Uchral: I believe that the entry into force of the interim trade agreement between Mongolia and the EAEU will open up new opportunities for our trade and economic cooperation. It will allow us to take our relations to a new level.
At the same time, the effects of the agreement will not be immediate or large-scale in the short term, but will gradually become noticeable over time.
As for the initial results, positive changes are already observable to a certain extent – such as tariff reductions, greater flexibility in customs procedures, and lower trade costs. In particular, there is a trend towards expanding export opportunities for livestock products, wool and cashmere, as well as food products and certain light industry products.
At the same time, businesses will benefit from clearer and more predictable market access conditions, which should facilitate an increase in trade volumes. Looking ahead, deepening cooperation with the Eurasian Economic Union will, first, expand export opportunities by widening the accessible market; second, enhance connectivity in transport and logistics – including through traffic across Mongolian territory, which could strengthen Mongolia’s regional position; third, help ensure stable supplies of energy resources, fuel, and certain industrial raw materials; and fourth, create greater opportunities for investment and joint projects in the processing industry, agriculture, and infrastructure.
It could be said that the interim trade agreement for Mongolia is not so much a source of drastic or significant change in the short term, but rather a fundamental condition for expanding economic cooperation in the medium to long term.
In our view, therefore, this agreement should be seen not only as a tool for trade development, but also as a strategic opportunity to increase export potential, improve standards and sanitary and phytosanitary regulations, modernise logistics infrastructure, and engage Mongolia more actively in regional economic integration.
According to our estimates, the implementation of this agreement is expected to increase Mongolia’s GDP by 2 percent, investment by 57.2 percent, and Mongolia’s exports to the Eurasian Economic Union by more than 24 percent. Particularly significant opportunities exist for mutually beneficial joint projects in areas such as energy, mining, rail transport, logistics, agriculture, environmental protection, and industry. At the same time, there is strong potential in projects across the transport, transit, and logistics sectors.
Kirill Tokarev: Thank you very much.
Mr President, a few questions for you, if I may.
We are continuing to talk about people’s lives, even though we started with macroeconomics. I suggest we turn to the attractiveness of living in the Far East. I made a note when you were talking about the standard of living and household incomes, which are growing at a rapid pace and quite significantly. You misspoke: you said, quote: “the cost of living is also higher.”
I understand that it is impossible to keep all the figures in your head, but I still have a question. Moving away from macroeconomics, how much might a kilogramme of apples cost somewhere in Kamchatka?
Vladimir Putin: The price of a kilogramme of apples is an important indicator. But something else is also important: how do we equalise the standard of living and the cost of living across the different regions of Russia? This is what we are striving for. This is, in fact, our goal: to ensure that the incomes of all people and, most importantly, their access to all the benefits of civilisation, including in economic terms, are equal. I repeat, for all families and all citizens of the Russian Federation. But there are problems here that prevent us from reaching this goal yet.
What problems? Logistics. It is a long way to deliver goods here, which makes them more expensive, and there is a shortage of transport capacity. I am talking about aviation. There is even a shortage of rail capacity. That is why we are working so hard on expanding the so-called Eastern Corridor, increasing the capacity of the Baikal-Amur Mainline (BAM) and the Trans-Siberian Railway. We need to focus more on developing the airport network here, and so on. We need to build new energy-generating capacity here to make energy cheaper. We need to develop greenhouse farming here. If electricity is cheaper, food will be cheaper. That is what we need to think about.
And if you compare the price of a kilogramme of apples here with, say, Rostov, they are probably cheaper in Rostov because they are easier to produce there and there is no need to transport them anywhere. You can eat them right there.
But we also have an overall shortage of apples. We need to think about this and work hard.
Kirill Tokarev: I would still like to clarify one more thing. Is it possible to bring prices in the Far East in line with those in Central Russia, for example – let us not take Rostov, where apples, melons, and so on are always abundant – by developing logistics and providing cheaper electricity? We will discuss electricity separately. Or does economic logic inevitably dictate the prices when you have a population of 300,000 in a region?
Vladimir Putin: Of course, it is possible, and it is necessary. That is what we are striving for. You have mentioned apples. Ask about fish and seafood. They are available here in greater quantities and at lower prices than the Russian average. These are simply the specific characteristics of the different Russian regions.
Let me remind you that we have the largest territory in the world. No country in the world is larger than Russia in terms of the area it covers. And logistics and transport connectivity are extremely important.
In my speech, I mentioned the need to use advanced technologies, including unmanned aerial vehicles, and we will be conducting this experiment here. I hope it will also yield positive results. We are thinking about this and proposing solutions. We will see how it all develops.
To be continued.