Grand plans for the Russian Far East! Opportunities for Chinese companies?

Mondo Finance Updated on 2024-02-12

In September 2021, Vladimir Putin delivered a speech in the Russian Far East, pledging to vigorously develop the region, including the construction of new cities and an increase in economic and educational opportunities. He said that the development of the Far East will be a priority for Russia, not just for many years, but for centuries to come. Why does Putin have grand plans for the Russian Far East?

One might think that this interest stems from the abundant natural resources of the Far East, which can be exploited for Russia's development. Some Asianists, or those interested in Asia, may believe that Russia wants to take advantage of its proximity to the Asian region, given Asia's growing importance in the global economy and geopolitics. Still others may point out that, given the relative decline of U.S. and Western influence around the globe (e.g., the U.S. withdrawal in Afghanistan), Russia may be more focused on the rise of Asian powers, particularly China. Finally, this interest may have arisen from the views of the 18th-century Russian scientist Mikhail Lomonosov, who argued"Siberia will benefit Russia"。

These assumptions are accurate. However, they do not cover the diversity of reasons for the Kremlin's current interest in the Far East. In the minds of Russian leaders, there may have been some time when the possibility of a possible secession of the Far East (since Soviet times) seemed more feasible, since Moscow did not have as much control over the vast country as it had in the past.

Developments in the Far East in Putin's time

After Putin came to power, he began to make the development of the Far East one of Russia's priorities. He launched a series of programs and policies aimed at attracting investment, promoting economic diversification and improving the living conditions of local residents. These initiatives include the construction of special economic zones, the provision of tax incentives, the improvement of infrastructure, the increase of education and employment opportunities, etc. In addition, Putin has also actively promoted economic cooperation with Asian countries, especially with China. China, as one of Russia's largest partners, offers important economic opportunities for the Far East.

Putin's motivation for developing grand plans for the Far East is manifold. In addition to economic considerations, he also wants to strengthen Russia's geopolitical influence in the region and discourage possible separatist tendencies. In addition, the development of the Far East will help to alleviate demographic pressure in the rest of Russia and promote balanced domestic development.

In conclusion, Putin's reasons for his ambitious plans for the Russian Far East include economic interests, geopolitical considerations, and the need to address population loss and promote balanced domestic development. He hopes to achieve sustainable development in the Far East by attracting investment, promoting economic diversification and improving the living conditions of the local population.

So what opportunities will the development of the Russian Far East bring to Chinese companies?

From the perspective of top-level design, China and Russia have held many rounds of high-level talks, and the Ministry of Commerce of China has also announced the "Sino-Russian Cooperation and Development Plan in the Russian Far East (2018-2024)" on its official website.

However, as far as all commercial companies are concerned, the consideration will be more pragmatic: around their familiar areas, to explore opportunities, whether it is investment or **, risk control, mutual recognition of standards, and the integration of business habits, all need a gradual process.

Russia is rich in natural resources, whether it is oil and gas, various mineral resources, and even agriculture, forestry and other natural resources, which contain huge reserves. In addition, some subdivided industrial fields also have unique technologies and heritage, and there will be good development opportunities for the integration of business chains around these fields in suitable subdivisions.

However, the shortage of Russian-speaking talents is a common challenge, and it is easy for individuals with high language talent to find suitable jobs.

Overseas** report.

The content of this article is written for the purpose of collecting data from a number of overseas ** and analyzing it, and is only for learning and exchange].

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