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Russia and North Korea: Key areas for cooperation

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The April 25 meeting in Vladivostok between President Vladimir Putin and Kim Jong-un was their first since the North Korean leader came to power in 2011. Arriving on his armored train, Kim Jong-un said that he had always dreamed of visiting Russia and hoped that his first visit would not be the last.

“We talked about the history of our bilateral relations, about the current situation and the development of relations between our two countries,” Vladimir Putin said wrapping up the opening phase of the negotiations, which lasted for two hours – twice longer than originally planned.

Kim Jong-un said that the two leaders “had a very meaningful and constructive exchange of views tete-a-tete on all pressing issues of mutual interest.”

“I am grateful for the wonderful time I have spent here, and I hope that our negotiations will similarly continue in a useful and constructive way,” he added.    

The talks later continued in an expanded format and ran for three and a half hours.

“We had a detailed discussion of all issues on our agenda: bilateral relations, matters related to sanctions, the United Nations, our relations with the United States and, of course, the central issue of the denuclearization of the Korean Peninsula, focusing on different aspects of all these problems,” Vladimir Putin said during the final press conference.

The main outcome of the talks, however, was the two leaders’ repeated emphasis on the need to restart the six-party talks on the denuclearization of the Korean Peninsula, as well as Russia’s readiness to act as a de-facto mediator between Pyongyang and Washington. Representatives of Russia, North and South Koreas, China, Japan and the United States regularly met between 2003 and 2008 (under Kim Jong-il), but those meetings were eventually suspended by Pyongyang following Washington’s refusal to ease the sanctions regime and its attempts to revise existing accords.

Ahead of the Vladivostok summit, the US Special Envoy for North Korea, Stephen Biegun, made a brief visit to Moscow to discuss the terms of the new Korean settlement parley. The US State Department described the diplomat’s visit as a desire to “discuss respective bilateral engagements with North Korea and efforts to achieve the final, fully verified denuclearization of North Korea.”

However, Mr. Biegun’s visit only underscored the lingering differences in the negotiating sides’ views on resolving the situation on the Korean Peninsula and regarding the mechanisms and mutual steps needed to make this happen. While North Korea, Russia and China are holding out for a phased lifting of sanctions on Pyongyang in exchange for North Korea gradually rolling back its nuclear missile program under international security guarantees, the United States insists on Pyongyang’s prior cessation of its entire nuclear missile development effort. According to Vladimir Putin, Kim Jong-un then asked him to convey his position and expectations to Washington.

“Chairman Kim Jong-un personally asked us to inform the American side about his position and the questions he has about what’s unfolding on the Korean Peninsula,” Vladimir Putin told reporters after the summit.  He promised to do this at upcoming international forums – including in China, as part of the Belt and Road Initiative.

The North Korean leader had thus decided to get back to Pyongyang’s previous practice of “balancing” between the leading world powers in an effort to achieve maximum possible concessions. This balancing act is important for Pyongyang primarily with Washington and Moscow – especially after the failure of the US-North Korean summit held in Hanoi in February.

According to Andrei Kortunov, director of the Russian International Affairs Council, “Kim Jong-un’s trip to Vladivostok means that he is looking for outside support amid his stuttering talks with the United States.”.

“With the failure of the Hanoi summit, Kim Jong-un needs to confirm that he is generally committed to denuclearization, but within the framework of the Russian-Chinese phased plan. Donald Trump and his team reject this and demand a complete denuclearization of the DPRK as a condition for lifting the sanctions,” Go Myung-hyun of Seoul’s ASAN Institute of Policy Studies said.

“What Pyongyang now needs following the failure the Vietnam summit is at least a semblance of minimal diplomatic success,” Andrei Lankov, a professor at Kookmin University in Seoul, said.

The list of countries Kim Jong-un can now turn to for diplomatic support is very short. These are essentially Russia and China. However, his visit to Beijing is not in the best interest of China, which is currently locked in tense trade negotiations with the United States.

Therefore, Kim Jong-un apparently hopes that his talks with Russia will send a signal to Washington that since political pressure on Pyongyang is not working, the Americans should proceed to a phased lifting of sanctions against North Korea in exchange for Pyongyang partially coming across on its nuclear missile program.

“North Korea’s strategy always has been walking a tight-rope between the conflicts of the world powers and getting concessions that way,” the BBC commented.

With the successful Russian-North Korean summit, which reaffirmed the two countries’ shared desire to breathe new vigor into the Korean settlement process, the ball is now in the US court, and President Trump’s well-known predilection for quick fixes and spectacular moves inspires hope for his next, third, meeting with Kim Jong-un.

During his recent visit to Washington, South Korean President Moon Jae-in underscored the need for a new such meeting between Trump and Kim. When meeting with Donald Trump, President Moon stressed that his “important task” is to “maintain the momentum of dialogue” toward North Korea’s denuclearization while expressing “the positive outlook, regarding the third US-North Korea summit, to the international community that this will be held in the near future.” Donald Trump responded in his peremptory manner: “I enjoy the summits, I enjoy being with the chairman,” he said, adding that his previous meetings with the North Korean leader had been “really productive.”

Although there has been no word yet about when exactly this meeting could happen, Kim Jong-un has already made it clear that he is ready “to be patient and wait for the American president by the end of the year.”

Seoul, another target of Pyongyang’s political signals, factors in very importantly in the diplomatic activity currently swirling around North Korea. 

“Kim launched the inter-Korean phase of the “new way” immediately after the meeting in Hanoi. It involves ratcheting up pressure on South Korea to demonstrate greater independence from the US,” The Hill commented.

“Of course, while it is awkward for South Korea to say so openly, there is no gainsaying the fact that the failure to make really meaningful progress in implementing the detailed agreements negotiated during the inter-Korean summits in Panmunjom and Pyongyang is due to the constraints imposed by South Korea’s support for the US’ North Korea policy.”

“South Koreans truly may be the most effective mediators precisely because they are caught between the parties: the Americans with whom they share long-term, common interests; and the North Koreans with whom they share an existential, common national identity,” the publication concluded.

In addition to general political issues and the problem of the denuclearization of the Korean Peninsula, economic projects in energy and infrastructure, including the construction of a gas pipeline and a railway line linking the two countries are an equally important aspect of cooperation between Russia and North Korea.

All these things, however, depend very much on the overall situation on the Korean Peninsula and the prospects for the normalization of inter-Korean relations.

“I spoke about this. We have been talking about this matter for many years. This includes direct railway traffic between South Korea, North Korea and Russia, including our Trans-Siberian Mainline, opportunities for laying pipelines – we can talk about both oil and gas, as well as the possible construction of new power transmission lines. All of this is possible. Moreover, in my opinion, this also meets the interests of the Republic of Korea, I have always had this impression. But, apparently, there is a shortage of sovereignty during the adoption of final decisions, and the Republic of Korea has certain allied obligations to the United States. Therefore, everything stops at a certain moment. As I see it, if these and other similar projects were implemented, this would create essential conditions for increasing trust, which is vitally needed to resolve various problems,” President Vladimir Putin said about this particular aspect of the talks with his North Korean counterpart.

Any further progress in the Korean settlement process depends directly on the kind of relationship we are going to see happening within the framework of the “six” world powers. Anyway, the summit, which has just closed up shop in Vladivostok, gives reasons for optimism. 

 First published in our partner International Affairs

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Russia’s Blueprint For Success in the Middle East

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As a tradition in the modern world the Middle East remains unstable. Continuous political turbulence in the region extinguishes all of previous leaders and appoints new ones, who with the Fortuna’s blessing were able to use their opportunities efficaciously. During the last couple of decades we have witnessed a number of coups d’etat, revolutions, counter revolutions and international interventions each with varying degrees of success. Regional power balance has lived through constant change however one of the players has managed not only to stay on top but overtake his counterparts. That powerhouse became Russia, the influence of which has grown the most compared to other parties in the Middle East.

Certainly, the Russian authorities didn’t have to start from scratch. Moscow took advantage of Soviet inheritance of friendly relationships and military cooperation with Arab countries. However, the modern strategy of Russia is far more sophisticated. Within the framework of developing its presence in the region the Russians combine political prowess, military might and soft power. All of the mentioned are a part of hybrid warfare concept, which is not an exclusive Russian stature, but Kremlin excels at it. Besides, Russia has one clear advantage against other world superpowers – consistency.

A great example of those principals is the Russian engagement in Syrian conflict. The first stage in the grand plan was a military operation, which stabilised Bashar Assad’s grip on power, restricted influence of the armed opposition and diminished capabilities of ISIS. The distinguishable features of the operation were active use of the aviation and precision weaponry in addition to the use of the newest types of weapons and advanced tactics. The success achieved by the military means was further developed by Russian political initiatives most notably during meetings in an unprecedented Astana format, which gathered together at a negotiation table Russia, Turkey and Iran. As a consequence this format became a substitution to the dead-end UN Geneva process. Along with that, to protect its interests Moscow has successfully capitalised on bilateral relations. The agreements made between Russia and Turkey became a main factor to reconciliation of situation in the Idlib province. Additionally, Russia serves as a mediator between Iran and Israel in the southern regions of Syria.

Whereas in Libya Russia did not believe it was necessary to conduct a full-scale military operation, however the principles stayed the same. The Russian side, which from beginning has supported Halifa Haftar’s Libyan National Army, regularly receives representatives from both sides of the conflict and notably Russian Ministry of Defence plays an active role in the negotiation process. LNA has gained some crucial allies such as Egypt and United Arab Emirates in consequence of the efforts of the Russian military.

Turkey became a main adversary of Russia in both Syria and Libya. Moscow and Ankara have managed to secure their cooperation despite periods of escalated tensions between the countries, i.e. after a Russian jet was shot down by Turkish-backed militants. Unchallenged success was Turkey leadership’s decision to purchase S-400 missile complex in spite of pressure from US. In addition to that, Turkey has chosen Russia as partner to build a nuclear plant in Akkuyu. Even president Erdogan doesn’t allow himself to openly badmouth his Russian counterpart, whereas the Turkish leader voices bitter complaints about a “bad start” in the relationship with the head of the White House.

Along active interference in the aforementioned domains Russia manages to sustain its relationships with the countries of the Persian Gulf. This concerns not only the Organization of Petroleum-Exporting Countries but also military technical cooperation including the participation of Arab countries in the “Army Games” organised by the Russian military. The vast network of contacts allows Russia to play on contradictions between Saudi Arabia, United Arab Emirates, Qatar and Turkey.

Russians became firmly entrenched in the Middle-East by dual-wielding their diplomatic and military capabilities. Thanks to clever positioning Russia can now secure its goals by simply waiting for their opponents to make a mistake. This is what happened in Afghanistan where the political vacuum left after the US withdrawal provided Russia with an opportunity to declare its readiness to facilitate the settlement process. Contacts with the Taliban established beforehand and Russia’s solid relationships with China and Qatar became an additional advantage.

Ultimately, consistency and succession of Russian middle-eastern policy at the head of which is usually the Armed Forces of Russian Federation, has provided numerous solid opportunities for Moscow to promote its interests in the region. Opposed to its rivals Russia has achieved the consolidation of its position and that is undisputed argument for the effectiveness of Kremlin’s strategy.

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Russian Authorities Going Forth and Back with Migration Policy

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Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov, in an interview published this mid-September in the newspaper Izvestia, a widely circulated and reputable Russian media, lamented that Moscow is still experiencing a shortage of labor migrants at various construction sites, now there is a shortage of about 200 thousand people.

“This problem remains today Moscow lacks about 200 thousand migrants. And we hope that in the near future the restrictions on their entry into the country will be softened,” Yefimov said, answering the question of the publication whether the issue of the shortage of migrant workers for construction sites in Moscow.

According to him, “the lack of labor resources leads to the fact that employers, primarily developers, outbid employees from each other, which increases the cost of their services. If we talk about the period before the pandemic, for several years, housing prices in Moscow have hardly grown. Against the background of the pandemic, the cost of housing has increased, actually catching up with inflation in previous years,” said the Vice Mayor of Moscow.

The announcement simply highlighted the inconsistency dealing with migrant policy and complete lack of foresight, especially what to do with migrants from the former Soviet republics. Thanks to these migrants, mostly employed in the construction fields and (cleaning, sewage disposal or removal services) in various neighborhood or districts, Moscow has won awards for being modern and clean smart-city in Europe. These migrants play an important role, most often underestimated, in building infrastructure and in general development of the society.

According to a survey of Promsvyazbank (PSB), Opora Rossii and Magram Market Research conducted in June 2021 found out that 45% of small and medium-sized businesses in Russia need new employees. Entrepreneurs still consider the unfavorable economic conditions caused by the pandemic to be the main obstacle to business expansion, and employing new staff requires extra cost for training in the social services sector.

Opora Rossii, an organization bringing together Russian small-and medium-sized enterprises (SMEs), and the Institute for Social Analysis and Forecasting of the Russian Presidential Academy of National Economy and Public Administration (RANEPA), among other business organizations and institutions, have been very instrumental on the significant role by migrant force, its combined objective and beneficial impact on the economy of Russia.

Several experts, in addition, have explained that migrants from the former Soviet republics could be useful or resourceful for developing the economy, especially on various infrastructure projects planned for the country. These huge human resources could be used in the vast agricultural fields to boost domestic agricultural production. On the contrary, the Federal Migration Service indiscriminately deports them from Russia.

Within the long-term sustainable development program, Russia has multibillion-dollar plans to address its infrastructure deficit especially in the provinces, and undertake mega projects across its vast territory, and migrant labor could be useful here. The government can ensure steady improvements are consistently made with the strategy of legalizing (regulating legal status) and redeploying the available foreign labor, the majority from the former Soviet republics rather than deporting back to their countries of origin.

Moscow Mayor Sergei Sobyanin has been credited for transforming the city into a very neat and smart modern one, thanks partly to foreign labor – invaluable reliable asset – performing excellently in maintaining cleanliness and on the large-scale construction sites, and in various micro-regions on the edge or outskirts of Moscow.

With its accumulated experience, the Moscow City Hall has now started hosting the Smart Cities Moscow, an international forum dedicated to the development of smart cities and for discussing changes in development strategies, infrastructure challenges and adaptation of the urban environment to the realities of the new normal society.

Kremlin Spokesman Dmitry Peskov has acknowledged that Russia lacks a sufficient number of migrants to fulfil its ambitious development plans. He further underscored the fact that the number of migrants in Russia has declined significantly, and now their numbers are not sufficient to implement ambitious projects in the country.

“I can only speak about the real state of affairs, which suggests that, in fact, we have very few migrants remaining over the past year. Actually, we have a severe dearth of these migrants to implement our ambitious plans,” the Kremlin spokesman pointed out.

In particular, it concerns projects in the agricultural and construction sectors. “We need to build more than we are building now. It should be more tangible, and this requires working hands. There is certainly a shortage of migrants. Now there are few of them due to the pandemic,” Peskov said.

The labor shortage is not only in Moscow but it applies to many regions including the Far East. During the 6th edition of the Eastern Economic Forum (EEF), the demography decline and labor shortage have been identified as factors affecting the development of the vast region. With plans to build residential blocks, establish industrial hubs and fix businesses, these depend largely on the working labor force.

The Russian government continues discussing a wide range of re-population program, hoping to attract in particular Russians there, even incentives such double income, mortgage system, early retirement and free plots of land, but little results have been achieved. Russia’s population is noticeably falling, and now stands at 146 million.

The Far East is almost the size of Canada with its current population (a mixture of natives plus legalized immigrants) more than 38 million. That compared, the Far East with estimated 6.3 million is one of the most sparsely populated areas in the world.

Kremlin has made this its absolute long-term priority, and the challenging task is to create an environment for investment and attract people. President Vladimir Putin acknowledged, at a meeting on the socio-economic development of the Far East, that the speedy outflow of the population from the Far East suggests that the region has not yet received enough support measures. “A lot is being done, but it is still not enough if we observe an outflow of the population.”

President Vladimir Putin has already approved a list of instructions aimed at reforming the migration requirements and the institution of citizenship in Russia, based on the proposals drafted by the working group for implementation of the State Migration Policy Concept of the Russian Federation for 2019-2025.

“Within the framework of the working group for implementation of the State Migration Policy Concept of the Russian Federation for 2019-2025, the Presidential Executive Office of the Russian Federation shall organize work aimed at reforming the migration requirements and the institution of citizenship of the Russian Federation,” an official statement posted to Kremlin website.

In addition, the president ordered the Government, the Interior and Foreign Ministries, the Federal Security Service (FSB), and the Justice Ministry alongside the Presidential Executive Office to make amendments to the plan of action for 2019-2021, aimed at implementing the State Migration Policy Concept of the Russian Federation for 2019-2025.

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Russia’s Far East: Transforming the Space into Modern Habitable Region

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Early September the 6th edition of the Eastern Economic Forum (EEF) under the theme “New Opportunities for the Far East in a Changed World” was held and considered as vital for strengthening especially economic ties among Asia-Pacific countries and the Far East region of Russia. What is known as the Far East covers approximately 40% of Russia’s territory.

 The Far East is almost the size of Canada with its current population (a mixture of natives plus legalized immigrants) more than 38 million. That compared, the Far East with estimated 6.3 million is one of the most sparsely populated areas in the world. The Russian government continues discussing a wide range of re-population programmes, hoping to attract in particular Russians there, even incentives such double income, mortgage system, early retirement and free plots of land, but little results have been recorded.

 The September forum, and all the previous ones, focused on raising sustainable development that primarily includes infrastructure, business investment and people. The question is on human habitation and sustenance, but this vast region of the country is sparsely inhabited. Kremlin has made this its absolute long-term priority, and the challenging task is to create an environment for investment and attract people.

 President Vladimir Putin acknowledged, at a meeting on the socio-economic development of the Far East, that the speedy outflow of the population from the Far East suggests that the region has not yet received enough support measures. “A lot is being done, but it is still not enough if we observe an outflow of the population.”

 “Our historical task is not only to keep people in the territories that were mastered by our ancestors for centuries, but to increase the population,” the Russian leader said. Putin stated that the rate of the outflow of people had decreased, but had not stopped. He called the growth of the population in the Russian Far East a “historical task.”

 For this purpose, it is necessary to develop production capacities, create jobs, and ensure people’s incomes. At the same time, Putin also called on using the resources that have already been allocated to the region. “Considerable resources have been allocated and they need to be used effectively,” he suggested, addressing the opening of the Far East Economic Forum.

 The September gathering brought together Russian and foreign entrepreneurs, politicians, experts, and representatives of the media as well as public organizations to exchange experiences and ideas, discuss the most pressing business and development issues and map out useful joint projects and initiatives for the region. Many of the speakers were very frank and objective in speeches, highlighted ways for developing the region.

 The average Far Eastern city fares about 10% worse than the Russian average in terms of housing provision and quality of medical services. “We need intensive breakthrough development. Master plans involving the integrated development of the region could provide the key to this development. What is required is a resource center for urban development covering the Far Eastern Federal District. Secondly, the region is facing a severe shortage of highly skilled workers, especially in architecture and urban planning,” Architect and Partner at KB Strelka, Alexey Muratov told the session on Urban Planning.

 The Far Eastern Federal District has significant economic potential and is of interest to both local and foreign business, but there is an imbalance between investment and economic potential in the region. For Artem Dovlatov, Deputy Chairman and Member of the Management Board of VEB of the Russian Federation, “the Far East is a very interesting region and of particular importance to the government. This is why the Russian President Vladimir Putin has declared that the Far East will be a priority region for Russia in the 21st century. From the perspective of investors, the region is of serious interest. It benefits from vast resources, proximity to the Asia-Pacific region, and diverse scientific and technological potential.”

 “There are certain barriers, of course, and investors still approach investing in the region with a degree of caution, since the barriers are objective. They are associated with the population (a lack of staff) and there are costs related to construction… The Far East is a highly urbanized region. This presents a huge challenge because we need to increase quality of life in the cities in order to prevent outward migration or attract new residents. Strategic planning in cities is needed here,” added Dovlatov.

 Further at the different session, Alexey Muratov, Architect and Partner at KB Strelka, simply puts it, “there aren’t enough people in the Far East. The region accounts for 40% of the country’s land mass but only 5.5% of its inhabitants. How can we solve the central challenge, which is to say the imbalance of economic and investment potential? The first and most obvious solution relates to rotation work. Modern workers’ settlements are in no way inferior to cities in terms of comfort. The second option is to attract residents to cities in order to create new jobs. The issue of the urban environment and quality of life is relevant here. According to all polls, quality of life is the key factor behind outward migration.”

 Nikolay Kharitonov, Chairman of the Committee for Regional Policy and Issues of the North and Far East, State Duma of the Federal Assembly of the Russian Federation, has, however, expressed worries about to curb migration from the Far East. “Getting a Far Eastern hectare helps people to get settled here [in the Far East] instead of leaving for the south or elsewhere,” he said, adding that for transforming the region, it need transportation network, good infrastructure and social facilities, employment opportunities and conditions for habitation.

 Admittedly, lack of social infrastructure constitutes a big hinderance to many projects. “Social infrastructure is of vital importance to the Far East. If people are fleeing the region, how can we motivate them to stay here? They need the right social infrastructure: health care, education, and everything in between,” according to the views of the Chief Executive Officer of VTB Infrastructure Holding Oleg Pankratov.

 The Far East offers a platform for Russia’s entry into global markets and attracting international investment. Russia is seeking to take its place in the global system of division of labor, so it’s concentrating on projects with high added value. “Russia currently has the best conditions in the world to attract human resources and financial resources and take the next technological step. Why would you just come to the Russian market? Let’s manufacture things here for the whole world to compete with other centres of power, relatively speaking. The Russian government has to provide the best conditions for this,” pointed out Arnika Holding President Alexander Generalov.

 Some foreign participants say it is necessary to expand support measures for business startups, consistently attempt to identify and remove development obstacles. “The Chinese experience is that high technologies and companies always play a very important role in the development of the local economy. We help them with resources, we allocate resources, and you do that too. The tech park should be connected to all resources and the international market. And human resources are very important. If you don’t have a good team to help startups, nothing will happen,” says International Association of Science Parks and Areas of Innovation Vice Chairman Chen Herbert.

 On one hand, entrepreneurs have little trust in the government due to its excessive control and supervision. There are still many problems including bureaucracy and red tape. On the other hand, based on the tasks defined by the country’s leadership, a set of measures is being implemented to enhance the business climate.

 The regulatory framework is being improved in the most important and problematic areas of government regulation. Institutions and infrastructure are being created for the development of investment activity. The best practices to support entrepreneurship are being introduced, including mechanisms for direct financial assistance, concessional lending, tax incentives, and moratorium on government inspections.

 Developing the transport and logistics infrastructure. The carrying capacity of the railways needs to be increased, to develop and upgrade the Trans-Siberian Railway. “Russia’s leadership also has concerns regarding the opportunities offered by the Trans-Siberian Railway. It is indeed a problem, because it is a major factor hindering economic growth in Russia, both in terms of foreign trade, and in terms of domestic transportation. We expect carrying capacity to be expanded in the near future,” believes Sergey Katyrin, President, Chamber of Commerce and Industry of the Russian Federation.

 The potential exists for Russia and South Korea to cooperate across a broad range of areas, including industry, energy, and the environment. “We particularly want to highlight the cooperation that has taken shape in relation to smart city projects, industrial parks, and multimodal terminals for shipping in Primorye Territory. One of our assets is a joint venture with the Zvezda Shipbuilding Complex. We have also acquired a grain terminal and are developing this business in Primorye Territory. Collaboration between our two nations is increasing in energy, fishing, and other areas,” Christopher Koo, Chairman, Korea International Trade Association (KITA).

 “South Korea has traversed a fairly long path in relation to the creation of a waste management system in the early 1990s. Since that time, the system has come to closely reflect our own targets in terms of waste disposal. At the start of this journey, virtually 80% of waste in South Korea went to landfill sites. Today, more than 60% is recycled. In Russia, the President has set the objective of processing – i.e., sorting – 100% of waste, and utilizing 50% of it by 2030. Naturally, we would be delighted to employ technological solutions in this area which have been implemented in South Korea,” added Denis Butsayev, General Director, Russian Environmental Operator Public Law Company.

 Besides South Korea, a number foreign countries strike deals at the forum, most of from the Asian Pacific region. Russia and Japan signed deals. China also signed several deals there as Russia has fast developing bilateral relations and both are members of BRICS. For instance, China has the following from the documents:

 China Railway International Group and Primorye Territory signed a statement of mutual interest and intent to implement an investment project for the Construction of Vladivostok ring road in Primorye Territory. Stage 1: Russky Island – Yelena Island – Ulitsa Kazanskaya in Primorye Territory. Investment volume: RUB 75 billion.

 VEB.RF and the ZED Development project company (part of Region Group) signed a cooperation agreement for the construction of an aerial lift across the Amur river at the section of the Russian-Chinese national border linking the cities of Blagoveshchensk (Russia) and Heihe (China). The construction project is being implemented jointly by the Russian investor and its Chinese partner, the China Railway Construction Corporation. VEB.RF will invest RUB 2 billion.

 The Ministry of Labour and Social Protection of the Russian Federation and the Ministry of Human Resources and Social Security of the People’s Republic of China signed a memorandum of understanding with the aim of establishing and strengthening cooperation on labour and social security issues of mutual interest.

 Pharmeco and the Union of Chinese Entrepreneurs in Russia signed a partnership agreement with the aim of developing cooperation between Russian and Chinese organizations and Asia-Pacific countries in the field of pharmacology and the construction of healthcare facilities.

 Zeleny Bulvar and KitayStroy signed a cooperation agreement on the construction of residential real estate in Vladivostok. Two 25-floor apartment buildings are set to be built in the Zeleny Ugol neighbourhood of Vladivostok by 2025.

 Stroytransgaz and KitayStroy signed an agreement on the implementation of a project to build a museum and accompanying educational and cultural centre in Vladivostok.

Japan

 The Ministry for the Development of the Russian Far East and Arctic, VEB.RF, ECN Group and Marubeni Corporation signed an agreement to implement a project to produce ships using methanol fuel at the Zvezda shipyard.

 GTLK and Mitsui O.S.K. Lines signed an agreement for Mitsui O.S.K. Lines to make an equity investment in GTLK Asia Maritime.

 The Ministry of Energy of the Russian Federation and the Ministry of Economy, Trade and Industry of Japan signed a bilateral agreement on the supply of LNG and gas condensate.

 Novatek and the Japan Bank for International Cooperation (JBIC) signed an agreement on strategic cooperation on low-carbon projects.

 The Europlast Primorsky Plant and Ryozai Kaihatsu signed a memorandum of cooperation on the expansion of exports to Japan between the parties.

 The Europlast Primorsky Plant and Ryozai Kaihatsu signed a contract on the sale and purchase of PET preforms.

 It is expected that the Far East will continue attracting investments, both Russian and foreign. “We will continue to try to constantly create new development opportunities, thus securing for the Far East this status of a testing ground for management technologies associated with the development of the region,” Deputy Prime Minister and Presidential Plenipotentiary Envoy to the Far Eastern Federal District Yury Trutnev said at the conference following the forum.

According to the official forum documents: “More than 380 agreements were signed at the forum. International and foreign companies, organizations, ministries and departments have signed 24 documents – 9 with China, 6 with Japan, 3 with Kazakhstan, by one agreement each with Austria, Vietnam, Canada, Serbia and Ethiopia.” And that agreements totaling 3.6 trillion rubles (US$49 billion) were signed at the Eastern Economic Forum (including agreements, the amount of which is not a commercial secret).

Until 2000, the Russian Far East lacked officially defined boundaries, according to historical archival documents. A single term “Siberia and the Far East” often referred to the regions east of the Urals without drawing a clear distinction between “Siberia” and “the Far East” on the territory of Russia. That however, the Far East is generally considered as the easternmost territory of Russia, between Lake Baikal in Eastern Siberia and the Pacific Ocean.

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