Russia develops Far Eastern region through the Look East policy

Wednesday, 2021-09-08 12:01:33
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Russian President Vladimir Putin speaks at the plenary session of the Eastern Economic Forum (EEF) 2021 in Vladivostok
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NDO - The Eastern Economic Forum (EEF) 2021 has just ended after three days, with the participation of representatives from about 60 countries and territories. With a dense agenda consisting of more than 70 events, roundtable discussions and business dialogues, EEF 2021 has achieved successful results, demonstrating Russia's goal of turning the Far East into Russia's gateway to the Asia through the Look East Policy.

With the advantage of rich land, natural resources and minerals, and located in the Asia-Pacific region with many developed countries, the Far East is currently considered a "red address", playing a key role for Russia to strengthen its economic and trade cooperation. Thereby, it hopes to promote the development of the region itself, creating momentum for Moscow's great pivot to the East.

Russian President Vladimir Putin declared that the 21st century is the century of development of the Far East and in the long term all of Siberia, becoming an important pivot point of Russia in terms of its economic activities, international cooperation, and attracting human resources and investment.

EEF 2021 with its theme "The Opportunities for the Far East in a World Under Transformation", saw the Russian President once again affirm that the development of the Far East is a national priority for the 21st century. Putin announced that Russia would start regular container shipments via the Northern Sea Route (NSR) across its northern flank from Vladivostok to St Petersburg from 2022, in order to develop the Far East as a transportation lifeline.

If a situation where container freight rates in the world increase tenfold due to tensions and congestion in the global shipping and transit system, it is clear that the Russia's NSR route through the Arctic Ocean is a very interesting project.

At EEF 2021, Russia announced its plan to build an Unmanned Logistics Corridor connecting Asia and Europe, aiming to increase freight traffic between Asia and Europe by 2030. This project, when put into operation, will shorten delivery times by 25%, reduce freight rates by 15%, and save Russia up to 300 billion rubles (about US$4.1 billion ) annually.

President Putin announced a series of "unprecedented" tax exemptions for businesses investing in the Far East, and directed the drafting of a large-scale development plans for cities in the Far East for next two years. Accordingly, Russia will build a satellite city of Vladivostok called Sputnik, hoping to attract one million people to live and work. With this ambitious plan, Russia hopes to turn the Far East into a young and dynamic development region.

Translated by NDO