With blazing rays and pulsating waves, the magnificent port city of Vladivostok welcomed over 7,100 people from 75 countries at the XIX Eastern Economic Forum. Despite a largely Russian audience, delegations from China, Malaysia, Bulgaria, Vietnam and Myanmar were visibly in attendance. In a reprise of St. Petersburg International Economic Forum, those from unfriendly countries surfaced with plastered smiles, eager to rekindle ties with a market they could not stand to lose after failing to hobble their host with sanctions.
Installed at the scenic campus of the Far East Federal University (FEFU) on Russky Island, this year’s event featured a magnificent cultural exhibition along Ajax Bay, where the world’s longest cable-stayed bridge could be seen across the Eastern Bosphorus straits in the panoramic background. First built for the APEC Summit in 2012, the infrastructure still hangs majestically, looking no less spiffy and new.
Exposition
Aptly named Far East Street, the seaside exposition starred immaculately dressed performers, dancing enthusiastically in their ethnic costumes. The celebratory atmosphere, complemented by live bands and traditional music, made it hard for any visitors to fathom that this is in fact a country fighting a bloody war at its other end.
Nearby, cuisines and products of the Russian Far East decorated rows of elegant white tents; among them, honey produced by Russian bees of the Primorsky Krai region, known for their resistance to parasites and invasive species. This trait is not unlike the human inhabitants of their native land, and one that might very well get the winged creatures on the sanctions list. Showcased too, but lesser known, were exotic regions in the Russian Far East. So unspoiled and resplendent in nature with wild animals roaming free, one could not help but argue perhaps these national treasures ought to be kept secret to avert overruns by romping tourists.
Besides, the Russian Far East has way more than picturesque spots to offer. As a sea and land gateway to the Asia-Pacific region, the region boasts seaports, railroads, rich deposits of diamond, oil, gas, gold, coal, and poly metals. With preferential regimes instated, the area receives various mechanisms of state support in the legal, insurance and taxation realms. The enticement seems to be working as the Russian Far East has achieved twice the national average in investment capital and reported a 20% rise in the volume of construction projects. Every ruble of state funding is reportedly matched with 34 rubles of private investment. Employment is evidently on the rise with over 4,000 businesses added this past year. The creation of over 150,000 new jobs in the same period could be seen in industries ranging from agriculture and fisheries to petrochemicals and mining.
Business Program
Despite signs suggesting a 100-meter distance, a one-kilometer invigorating uphill hike took one back to the conference venue where the mood changed from pirouetting joviality to one of dollars, cents and sense. The business program of EEF involved 120 sessions and roundtable discussions. Largely dominated by Russian speakers, the deliberating topics included Russian sovereignty in the Arctic zone, a treasure trove of natural resources. The discussions on the development of the North Sea Route (NSR) brought much excitement to international partners eager for a channel quicker, cheaper, and more secured than all its alternatives. The triumph of the NSR speaks for itself – with freight traffic flow increasing from just over four million tonnes in 2014 to over 34 million tonnes in 2023.
Of course, any discussions, however grand, would amount to no more than hot air if not supported by concrete plans. 292 agreements totaling 5.5 trillion rubles were signed at the forum, compared to 1000 agreements totaling 10.5 trillion rubles over the previous three forums. This suggests that strategic plans for revitalizing the Far East are not only in keeping with momentum, but are even gaining steam in cash investments.
The BRICS engine also appeared non-stoppable, with Russia reporting a 3-times increase (to 86%) in settlements in national currencies with BRICS members, while registering a trade turnover of $294 billion with the thriving group. However, BRICS was not the only association to garner attention; in total, 60 new countries expressed their intention to join BRICS, SCO, and EAEU. This enthusiastic phenomenon now includes Turkey – the first NATO country to apply for BRICS membership.
In accordance with AI analysis, the most popular topics at the event were “country”, “development”, “project”, “East”, and “person.” What was evident, even in the absence of an AI informant, is the intensifying passion and attention displayed towards the East. In turn, the region appears to have recovered from its erstwhile sore of being spurned for the West as it now stands proud and poised as Russia’s lifeline in overpowering barriers levied by the Western elites and their docile vassals.
Plenary Session
At the plenary session, Russian President Vladimir Putin took to the stand to take stock of the Far East, and proudly declared the uptick in multiple areas of its development, including industrial output, employment, capital investment, etc. He further laid forth proposals to further strengthen its logistical and transport capabilities, including plans to lay 3,100 kilometers of tracks along the Eastern Operating Domain, and a new transport corridor between St Petersburg and Vladivostok to function as a crucial continental artery.
Putin did not refrain from calling out the elephant in the room, which weighs heavily on most minds even if unspoken. He acknowledges Russia has a need to upgrade legislation not only to minimize risk exposure and encourage investments, but to ensure risk distribution in a fair and transparent way. Time and again, the Russian leader reiterated his primary goal of improving the quality of life for the Russian population, and stressed the need to create opportunities for them to achieve their ambitions. He highlighted a new approach which involved doing things in parallel, so that educational, cultural and health considerations are simultaneously made for the residents, even as plans for new facilities in their vicinity are being drawn up.
Vice President of the People’s Republic of China Han Zheng and Prime Minister of Malaysia Anwar Ibrahim joined Putin at the plenary session. Han highlighted the close ties between Northeast China and the Russian Far East, underscoring how the natural partnership between
the two geographic neighbors will sustain their win-win cooperation in trade, investment, energy, and transport connectivity. He reported that China has been the largest trade partner and source of foreign investment in the Russian Far East, and shared that trade between China and the Far East ballooned by an increase of 54% to reach $33.8 billion in 2023.
Anwar, on the other hand, minced no words when asked for his opinion concerning the Middle East situation. The Malaysian leader reminded everyone that the Israel-Palestinian conflict did not start with the October 7 Hamas attack – as the West and their parroting satellites would like everyone to believe. He resoundingly reminded all that it dates back to the Nabka in 1948.
It’s worth noting that despite being painted with unflattering médiatique strokes by his neighbor across the pond, Anwar has risen to be a voice of reason in a region tightly wedged in a tug of war. His rejection of modern-day colonial chains, spells hope that the majority of ASEAN members – under Malaysia’s chairmanship in 2025 – could strive for the alliance’s paramount principle of centrality and eschew bootlicking Uncle Sam as some of its members have disgracefully done.
Afterthoughts
Considerable changes appear to have taken place in the Russian Far East over the past years, but their magnitude is debatable. The forum, however, did a good job delivering the message that the region’s development is one of high priority.
With or without foreign investment, some might argue that Russia is capable of groundbreaking developments in the Far East on its own. However, as a key stakeholder in the success of BRICS, the leadership of Russia sees immense value in sharing prosperity and achieving win-win collaborations.
It would, however, be remiss to disregard the factors retarding investment activities in the region. Sanctions aside, the host city of Vladivostok, for example, exhibited a need for infrastructural upgrades and enhancement of quality service, despite its natural splendor.
The Far East unquestionably beholds massive potential, both discernible and latent, and is fully capable of becoming one of the most developed and prosperous areas in Russia. Its ultimate success, nonetheless, lies in securing an astute management team – one committed to fulfilling the awe-inspiring vision for one of the world’s most fascinating regions.
