First Eurasian Economic Forum
Also attending the meeting were Prime Minister of Armenia Nikol Pashinyan, President of Kazakhstan Kassym-Zhomart Tokayev, President of Kyrgyzstan Sadyr Japarov, Prime Minister of Belarus Roman Golovchenko, and Chairman of the Board of the Eurasian Economic Commission Mikhail Myasnikovich. The forum moderator was Alexander Shokhin, President of the Russian Union of Industrialists and Entrepreneurs, member of the Presidium of the EAEU Business Council.
The purpose of the Eurasian Economic Forum, established by a decision of the Supreme Eurasian Economic Council and timed to coincide with a meeting of the SEEC, is to further deepen economic cooperation between the EAEU member states.
The EEF 2022 in Bishkek, themed Eurasian Economic Integration in the Era of Global Shifts: New Investment Opportunities, will focus on promising areas for the strategic development of integration. The participants will discuss ways to deepen industrial, energy, transport, financial, and digital cooperation.
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Address at the plenary session of the 1st Eurasian Economic Forum.
President of Russia Vladimir Putin: I am grateful for this opportunity to address you, to speak on the issues which you [Alexander Shokhin] have raised and which, as you suggested, should be addressed in greater detail.
First of all, I would like to thank President of Kyrgyzstan Sadyr Japarov and his team for organising this event. I can see many people in the audience, including businesspeople and government officials. I am sure that the media will take a keen interest in the forum.
This is what I would like to begin with when answering your question. The development of Eurasian integration has no connection whatsoever to current developments or market conditions. We established this organisation many years ago. In fact, we established it at the initiative of the First President of Kazakhstan [Nursultan Nazarbayev].
I remember very well the main conversation we had on that issue, on that subject, when he said, “You must choose what is more important to you: working more actively and more closely with your direct neighbours and natural partners, or prioritising, for example, admission to the World Trade Organisation.” It was in this connection that we had to make decisions.
And although we were interested in joining the WTO and in developing relations accordingly with our Western partners, as you said and as I continue to say, we nevertheless regarded as our main priority the development of relations with our direct and natural neighbours within the common economic framework of the Soviet Union. This is my first point.
The second. Already at that time, we started developing ties – I will speak about this later – within the framework of the Greater Eurasian Partnership. Our motivation was not the political situation but global economic trends, because the centre of economic development is gradually – we are aware of this, and our businesspeople are aware of this – is gradually moving, continues to move into the Asia-Pacific Region.
Of course, we understand the tremendous advantages of high technology in advanced economies. This is obvious. We are not going to shut ourselves off from it. There are attempts to oust us from this area a little but this is simply unrealistic in the modern world. It is impossible. If we do not separate ourselves by putting up a wall, nobody will be able to isolate such a country as Russia.
Speaking not only about Russia, but also about our partners in the EAEU and the world in general, this task is completely unfeasible. Moreover, those who are trying to fulfil it harm themselves the most. No matter how sustainable the economies of the countries pursuing this shortsighted policy are, the current state of the global economy shows that our position is right and justified, even in terms of macroeconomic indicators.
These advanced economies have not had such inflation for the past 40 years; unemployment is growing, logistics chains are breaking and global crises are growing in such sensitive areas as food. This is no joke. It is a serious factor affecting the entire system of economic and political relations.
Meanwhile, these sanctions and bans are aimed at constraining and weakening the countries that are pursuing an independent policy, and they ate not limited to Russia or even China. I do not doubt for a second that there are many countries that want to and will pursue an independent policy and their number is growing. No world policeman will be able to stop this global process. There will not be enough power for this and the desire to do so will evaporate due to a host of domestic problems in those countries. I hope they will eventually realise that this policy has no prospects whatsoever.
Violating rules and norms in international finances and trade is counterproductive. In simple words, it will only lead to problems for those who are doing it. Theft of foreign assets has never done any good to anyone, primarily those who are engaged in these unseemly deeds. As it has transpired now, neglect for the political and security interests of other countries leads to chaos and economic upheavals with global repercussions.
Western countries are sure that any persona non grata who has their own point of view and is ready to defend it can be deleted from the world economy, politics, culture and sports. In fact, this is nonsense, and, as I said, it is impossible to make this happen.
We can see it. Mr Shokhin, as a representative of our business, you certainly face problems, especially in the field of supply chains and transport, but nevertheless, everything can be adjusted, everything can be built in a new way. Not without losses at a certain stage, but it leads to the fact that we really become stronger in some ways. In any case, we are definitely acquiring new skills and are starting to focus our economic, financial, and administrative resources on breakthrough areas.
True, not all the import substitution goals were achieved in previous years. But it is impossible to achieve everything: life is faster than administrative decisions, it develops faster. But there is no problem. We have done everything necessary in key areas that ensure our sovereignty.
Let us move on. After all, import substitution is not a pill for every ill, and we are not going to deal exclusively with import substitution. We are just going to develop. But we will continue to arrange import substitution in those areas where we are forced to do so. Yes, maybe with some mixed results, but definitely we will only become stronger thanks to this, especially in the field of high technologies.
Look, after the CoCom lists – I have already spoken about this many times – after what you said about our work, for instance, within the same former G8 and so on, restrictions still remained. In the most sensitive areas, everything was still closed. In fact, fundamentally – I want to emphasise this – nothing has changed fundamentally.
These issues related to large-block assemblies and so on, it took so much effort to increase localisation within the country, in our economy, in the real sectors of the economy, in industry. And even then we did not agree on key issues in many respects.
Actually, import substitution was necessary
to create not just assembly shops, but also engineering centres and research centres. This is inevitable for any country that wants to increase its economic, financial and ultimately political sovereignty. It is inevitable.
This is why we have been doing it, and not because the current state of affairs demands it from us, but simply because life itself demanded this, and we were active.
And, of course, we will work actively within the framework of the Eurasian Economic Union and within the CIS in general, we will work with the regions of Asia, Latin America and Africa. But I assure you, and you can see it yourselves, many of our companies from Europe, our partners from Europe, have announced that they are leaving. You know, sometimes when we look at those who are leaving, we ask ourselves: isn’t it a good thing that they have left? We will take up their niches: our business and our production – they have matured, and they will safely take root on the ground that our partners have prepared. Nothing will change.
And those who want to bring in some luxury goods, they will be able to do so. Well, it will be a little more expensive for them, but these are people who are already driving Mercedes S 600, and will continue to do so. I assure you, they will bring them from anywhere, from any country. That is not what is important for us. What is important for the country, for its development – I have already said this and I will repeat it – are the engineering centres and research centres that are the basis of our own development. This is what we must think about and what we must work on both within the EAEU and in a broad sense with our partners – those who want to cooperate with us.
We have a very good base that we inherited from the old days, we only need to support it and to invest resources there. As for those areas, in which we did not invest appropriate resources before, including, say, administrative resources, relying on the fact that everything can be bought by selling oil and gas, life itself has now forced us to invest there.
And thank God that this has happened. I do not see any problem here with the fact that we have not completed something in the field of import substitution. We will not do it just because the current economic situation forces us to do so, but only because it is in the interests of our country.
The Eurasian Economic Union has developed a roadmap for industrialisation, with over 180 projects with a total investment of over $300 billion. A programme for agricultural development has been prepared, including more than 170 projects worth $16 billion.
Russia has something to offer here, and businesspeople are well aware of this. We have grown to be highly competitive at the global level, in the global markets. Russia remains – if we speak about agriculture – the largest exporter of wheat, number one in the world. Until recently, we were buying it – now we are selling it, number one in the world. True, countries such as the United States or China produce even more, but they also consume more. But Russia has become number one in international trade.
Our high-tech industries are growing successfully, too. And we would like to continue growing together with our EAEU partners. We can and should restore our collaborative competencies.
I have discussed this with my colleagues, with the President of Kazakhstan and the Prime Minister of Armenia – not because some of Russia’s IT workers have moved to Armenia, not at all. They are free to relocate and work anywhere, and God bless them. But again, it is a certain challenge for us: it means we must create better conditions.
We have opportunities to work with the Republic of Belarus in a number of areas of cooperation, and we will definitely do this, because the Republic of Belarus has retained certain expertise that is very important for us, including in microelectronics. President Lukashenko and I just met in Sochi and talked about it, and even agreed to set aside funding for those projects in Belarus. The products that these enterprises, these industries will make will enjoy demand in Russia. This is a very interesting and promising area.
The EAEU countries have laid the foundation for a common digital landscape, including a unified products traceability system. Various platform solutions are being developed, for example, the Work without Borders search system. The project is very important for all our countries. Despite all the crises and challenges caused by the current political situation, labour migrants continue to send almost as much money home from Russia as before. Moreover, some countries are receiving even more money now, as my colleagues from the CIS have told me.
The practice of payments in national currencies is expanding, which is very important. Notably, their share in the mutual trade of the Union’s countries has already reached 75 percent. We will continue to work on interlinking our national payment systems and bank cards.
We believe it is important to expedite the dialogue on internal international financial and payment mechanisms, such as transitioning from SWIFT to direct correspondent contacts between the banks of the friendly countries, including through the Russian Central Bank’s financial messaging system. We also propose strengthening cooperation with key lending and financial centres in the Asia-Pacific Region.
New topics related to Eurasian integration include developing cooperation in green technology, environmental protection and energy saving. We expect to receive support and proactive suggestions from the business community.
In the current international conditions when, unfortunately, traditional trade and economic links and supply chains are being disrupted, Russia’s initiative to form a Greater Eurasian Partnership– an initiative we have been discussing for many years – is gaining a special meaning.
We are thankful to the leaders of the EAEU countries for supporting this proposal from the very beginning. BRICS members such as China and India as well as several other countries also supported creating a Greater Eurasian Partnership. The Shanghai Cooperation Organisation, ASEAN and other organisations have shown interest in this initiative.
Here, I would like to mention several specific ideas pertaining to the comprehensive development of the Greater Eurasian Partnership.
First, it is reasonable to develop shared institutions for specific growth points, including creating a Eurasian export centre and trade houses, expediting the establishment of a Eurasian reinsurance company, examining the issue of developing special trans-border economic zones, probably even with supranational authority.
The second point. It is important to step up the EAEU’s cooperation with foreign partners and inform them about the benefits and advantages of working with the EAEU and of our key projects and plans. My colleagues know that interest in our association is growing. In this context, the EAEU Business Council could play a significant role. It is already successfully developing ties beyond our union. Its business dialogue system may become an example for a potential business cooperation platform in Greater Eurasia.
That said, as I have already noted, it would be desirable to support the freedom of business initiative, the creative activity of business, of our investors. I suggest creating additional, better incentives for this purpose and investing more in Eurasian projects. Naturally, the companies representing national businesses of the EAEU countries must receive priority support.
My third point. It is time to draft a comprehensive strategy for developing large-scale Eurasian partnership. It must reflect the key international challenges facing us, determine future goals and contain instruments and mechanisms for achieving them. We must consider further steps in developing our system of trade and investment agreements, in part, with the participation of the SCO, ASEAN and BRICS member countries.
In fact, we may draft new agreements that will develop and supplement WTO rules. In this context, it is important to pay attention not only to tariffs but also to the removal of non-tariff barriers. This may produce considerable results without subjecting our national economies to risks.
In conclusion, I would like to say the following. It would be no exaggeration to say that Greater Eurasia is a big civilisational project. The main idea is to create a common space for equitable cooperation for regional organisations. The Greater Eurasian Partnership is designed to change the political and economic architecture and guarantee stability and prosperity on the entire continent – naturally, taking account of the diverse development models, cultures and traditions of all nations. I am confident, and this is obvious anyway, that this centre would attract a big audience.
I would like to wish success and productive cooperation to all participants of the Eurasian Economic Forum.
Thank you for your attention. Thank you.
World Economic Forum = 20th century
Eurasian Economic Forum = 21st century
The scale of this stuff is enormous. Waaaa. Those who’d be designing procedures for these organizations would be doing something truly crazy and epic.
Let’s empower the BRICS as well. A new model of progress based in common interests are urgent.
“It would be no exaggeration to say that Greater Eurasia is a big civilisational project. The main idea is to create a common space for equitable cooperation for regional organisations. The Greater Eurasian Partnership is designed to change the political and economic architecture and guarantee stability and prosperity on the entire continent.”
Definitely a creative dynamic and strategic.
“It is time to draft a comprehensive strategy for developing large-scale Eurasian partnership.”
One of the chief aims is industrialization.
“The Eurasian Economic Union has developed a roadmap for industrialization.”
Putin notes that it is important to create “engineering centers and research centers. This is inevitable for any country that wants to increase its economic, financial and ultimately political sovereignty. It is inevitable.”
Gotta have science and technology.
Very forward looking.
What a Statesmen, where do I sign up on behalf of the UK? What do you mean I’m persona non grata? It’s not my fault Blow-Jo’s a f*cking turnip head, being led by City of London.
I can remember back in 2003 (it was around the same time I was poncing around Africa, learning the ropes of big-biz, searching for viable Mining Assets for western/Chinese companies ). I met a few Russian dudes who were dotting the I’s & T’s on a contract to build a dam in west Africa. Excellent English speakers they were discussing Exxon Mobil and Kho(dork)ovsky who were thrashing out a deal for Yukos-Sibneft, who at the time had the largest oil reserves in the world of 20 + billion barrels. Lee Raymond was Exxon MD and Rex Tillerson his deputy. Russia were still obviously finding their feet and traitor Khodorkovsky despite knowing he was treading on thin ice was granted a meeting between himself , Exxon’s No.1 & 2 and President Putin.
I don’t think it was very long into this meeting that President Putin knew he was being set-up as Exxon-Khodorkovsky were proposing that they take a majority stake in the new JV. The meeting didn’t last long and from memory Putin’s face went a sickly white. Selling off Russian Assets of strategic national importance was not his idea of putting Russia back on the map.
Few presidents/elites of other sovereigns could care less about their country and would have taken the 10%, $5-$10 billion + shares, much like we see with trash like Zelensky.
The rest is history.
Still in the back of my mind I cant help thinking that Russia dodged a bullet, not only with Exxon but the whole Vulture Capitalist brigade, who’d have sliced & diced her up and spat out the Russian working class in a heartbeat, again, much like the cockroaches have done/tried to do in Ukraine.
So Tillerson once Trumps SoS had form with Putin.
He might have been trying to explain Putin and Russia to Trump and his pump n dump team.
No wonder Tillerson thought Trump a [email protected]. An opinion many sooner or later also agreed with.
Gets worse Whale. Tillerson was recommended by Robert Gates, CIA Asset, Sec of Defence under Bubba Bush and continuing in a smooth transition in the same capacity under Obama . . . . . . . . & Condoleezza ‘Chucky’ Rice.
Now Trump, who for some reason had difficulty filling and keeping Administration/Cabinet picks, his biggest mistake was hiring offshoots and recommendations of The Swamp which he promised to drain. Goldman got the Keys to the Treasury and bailed out Bank-Corp, just as his 2 predecessors did. Trump would have been on a nice earner himself bailing out his campaign donors.
Tillerson was sold to Trump, the opportunistic salesman I expect, as someone who could get his mitts on some prime Russian Energy Assets, all the while Tillerson being an Agent of the CIA.
Exxon = Swamp
“Still in the back of my mind I cant help thinking that Russia dodged a bullet, not only with Exxon but the whole Vulture Capitalist brigade”
She ain’t yet, but that’s what it basically all about…
BiDeNs BuIlD bAcK bEtTeR wIlL cRuSh EaEu PlAnS
Sounds like us westerners will be left behind and will have to face reality soon.
Hey, Herr Schwab. Are you listening?
Look around seeing with your own eyes and hearing with your own ears you’ll see no strong leaders in the western world. Joe Biden is controlled by someone operating a teleprompter, NATO & the EU are lackey’s to the USA, even the UK doesn’t have a leader that can think freely. I can see one real leader on the world stage and that is Putin, I hope it don’t go to his head.
I’m here hoping to find quality info on the US plan to force Russia into default by not accepting interest payment on their bonds… due now.
That’s right folks.
Russia needs to make an interest payment.
They have the money.
They intend to pay.
The US has refused to allow the payment to be processed.
The US wants to then claim Russia is in default.
I understand a National default sets in motion a whole lot of other issues….
Does anyone have quality insight into this?
Or links to quality sites?
Russia tried to pay in US dollars and it was refused. They are asking it to be payed in Rubles…
jes kiddn… 😉
Check out the duran, alex and alexander May 26. Excellent discussion/answers.
Putin: “Actually, import substitution was necessary.”
And it’s necessary for the U.S. to do it too, no matter what China does or says. No candidate has it (this policy) yet. The U.S. did it for Russia in a way, forced it upon Russia. Russia was happy importing heavily before. The U.S. needs to force it upon itself. Elemental, Watson. It’s certainly the right policy for huge, rich countries like Rusia and the U.S., who were, and especially the U.S. still is, importing too much. The U.S. should believe Russia on how import substitution is a net benefit.
I think “equitable cooperation” is a misnomer. It does not exist in real world.
actually an infinite number of mutually beneficial simbioses occur in life – it’s just not the prevalent mode of organisation in our business relations.
Rent-seeking is the culprit. The profit extraction mindset – but hey, thats what you get with a set of international(global) rascals. They need to constantly move the goalposts in order to stay one step ahead.
what would we ever do without him. because its Eurasian – it gives European countries the ability to reject the NWO – i love President Putin
I believe he is inspired by high beings.
An Archangel – a Christian Archangel
but many other beings too… good beings, that want humanity to find its normal evolution
What a difference from the gloom and doom of inflation, shortages, pretend “wins” in poor degraded Ukraine, posing as a free and democratic country, that we see in the Western media. The “West” represents rich and powerful, but NOT a large number of actual humans, whose survival in the global South will be aided by the work of Russia and its partners in building, not destroying, a world e can all live in.
When Jacques Chirac was alive he spoke often about a multipolar world. Whether or not he was really committed to the idea I don’t know. However, he fired my imagination and I was convinced this enormous vision could only be a force for good in the world. Unfortunately thé US, thé UK, thé EU, the so-called Atlantic Partnership has destroyed any possibility of this coming about. Putin’s speech has rekindled hope of such a project coming into being. Sadly not for the West.
Oh no, it’s for the ‘west’ as well……after denazification.
Where Mr Putin may be able to help us westerners locked in an Oligarchic Pageant Show……aka, Rich Dudes Got No Talent….is some direction, past crooked elections to regain our, I’ll laugh now, democratic rights.
“it’s for the ‘west’ as well……after denazification.” Don’t let Nazism make you think so. It is gone. Other things may have something in common with it, but they are not it.
It is sad to be pursuing the German Nazism now. Putin should have called it neo-Nazism.
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