U.S. politicians have criticized the Russian application FaceApp, which reads biometric data from user-uploaded photos and generates altered images: those of the user in the future, in the past, and so on. In the second half of July, Chuck Schumer, who leads the Democrat minority in Senate, requested that the FBI and the Federal Trade Commission look into FaceApp’s potential for endangering U.S. national security and the private life of the millions of Americans who use the app.
One of Schumer’s key arguments was that the FaceApp developer is based in Russia and that the app’s authors have “full, irrevocable access” to the personal photos and data of the app’s users who allow access to their smartphones. The following day Schumer again addressed U.S. FaceApp users. On July 18, he tweeted: “Warn friends and family about the deeply troubling risk that your facial data could fall into the hands of something like Russian intelligence or military.”
Despite the fact that IT specialists have already disproved the allegations of FaceApp-related risks, Schumer’s concerns indicate that the U.S. believes the Kremlin and Russian hackers to be one of the key threats. Western politicians’ fears are to a certain extent based on the fact that, after the takeover of Crimea, Russia is viewed as a country that undermines the liberal world order and attempts to promote its own alternative.
It’s easy to understand this thinking if we recall European leaders’ reaction to a statement made by the Russian president in a June 2019 interview with The Financial Times, when he said that the liberal idea “has become obsolete.” This statement was countered by European Council President Donald Tusk and Boris Johnson, who was later elected as Britain’s new prime minister on July 23. Tusk argued that it was not liberalism that had become obsolete but rather authoritarianism, even though it might still seem effective. Johnson, for his part, referred to Putin’s statement about liberalism’s ineffectiveness as “the most tremendous tripe.”
It should also be noted that Russia’s revisionism, in the eyes of the West, implies not just an active foreign policy but also intervention in other countries’ internal affairs.
“U-turn over the Atlantic” and Munich
Revisionism, in its broad sense, is a reassessment of values, views, theories, established standards, and rules in a certain field. In the narrower field, such as international affairs, revisionism is seen as a revision of the world order, accompanied by individual countries’ attempts to intensify their foreign policy efforts and take a fresh look at their role in the world.
Russia, strictly speaking, does behave like a revisionist power. Nowadays, Moscow clearly defines its foreign political vector and conducts independent policy on the global arena without taking into account the West’s opinion.
However, what Washington and Brussels view as revisionism is, to Moscow, the “restoration of historical justice” or the protest against the unipolar world model and what Russia calls “U.S. hegemony.” After its victory in the Cold War, the U.S. became the sole superpower and, in the words of Russian politicians, the world turned into a unipolar system in which Washington predominantly imposed the rules of the game. During the long period of Boris Yeltsin’s presidency, from 1991 to 1999, Russia perceived the U.S. as a close ally and an economic donor, but then everything changed.
The key factor here became the NATO military operation in Yugoslavia, and the main symbol of Russia’s protest came in the form of the so-called U-turn over the Atlantic. On March 24, 1999, Russian Prime Minister Yevgeny Primakov was on his way to Washington for talks with Vice President Al Gore. As the Kommersant daily reported at the time, Primakov was to negotiate the nearly $5 billion loan to Russia from the International Monetary Fund (IMF), secure U.S. approval for the restructuring of Russia’s foreign debt, and sign a number of trade and economic agreements, including on the use of Russian launch vehicles in orbiting U.S. satellites, lease plans for agricultural equipment, and the supply of Russian steel to the U.S. market.
However, as Primakov’s aircraft was passing over the Atlantic, he received a phone call from Gore, who said that an aerial bombing of Belgrade was imminent. The Russian prime minister then called President Yeltsin, canceled his U.S. visit, and returned to Moscow. According to Kommersant’s estimates, this U-turn cost the Russian economy $15 billion. Already back then Russia had demonstrated that it would be carrying out an independent policy and that Moscow was prepared to sacrifice its economic welfare for the sake of its principles. The Primakov U-Turn became Moscow’s first protest signal, one that denoted its categorical disagreement with the West’s appraisal of the situation in Yugoslavia. In essence, this was also an attempt to revise Moscow’s take not only on U.S. foreign political decisions but also on its own policy. While the West believes that this may be described as revisionism, Russia views it as a manifestation of a self-sufficient and independent foreign policy.
Notably, it was Primakov who proposed the concept of “multipolarity” and argued that the unipolar world model imposed by the U.S. was no longer working. Putin redefined Primakov’s ideas and went even further, consistently criticizing the U.S. “hegemony” and expressing hope that more than two geopolitical poles would emerge around the world. Putin’s February 2007 speech at the Munich Security Conference came as a shock to the West. He said that the U.S. unipolar model was no longer working and that it was “not only unacceptable but also impossible”: “One state and, of course, first and foremost the United States, has overstepped its national borders in every way. This is visible in the economic, political, cultural, and educational policies it imposes on other nations. Well, who likes this? Who is happy about this?”
In essence, Putin completely revised the legacy of the Cold War, which, in his opinion, had left the world with “live ammunition” in the form of ideological stereotypes, double standards, and other typical aspects of Cold War bloc thinking. It is no wonder, then, that his speech was viewed as an early harbinger of the current standoff between Moscow and Washington, which some experts refer to as a new Cold War.
U.S. Defence Secretary Robert Gates jested at the time: “As an old Cold Warrior, one of yesterday’s speeches almost filled me with nostalgia for a less complex time.” The late Senator John McCain noted that Putin’s speech indicated a pronounced autocratic turn and that Russia’s foreign policy was becoming more opposed to the principles of the Western democracies and, oddly enough, of multipolarity: “In today’s multipolar world, there is no place for needless confrontation.” Senator Lindsey Graham, a Republican from South Carolina, noted that Putin’s rhetoric had “done more to bring Europe and the U.S. together than any single event in the last several years.” Senator Joseph Lieberman, an independent from Connecticut, said that Putin’s speech “takes us back to the Cold War.”
The Ghost of the Soviet Union
After Putin’s Munich speech, the West began fearing a revival of the USSR and came to view any of Moscow’s foreign political moves across the post-Soviet space through this particular lens. Former U.S. Secretary of State Hillary Clinton said in December 2012 that the Kremlin’s policy (such as the establishment of the Eurasian Union or the Customs Union) resembled attempts to reinstate the Soviet Union.
These fears were first voiced in the declassified 1992 documents of the Clinton administration, informally known as Defense Planning Guidance. The documents stated that Washington should use its status as the recognized leader in order to strengthen the new liberal world order. In fact, the Clinton administration did not rule out the possibility of the USSR being brought back in one form or another.
“Democratic change in Russia is not irreversible, and despite its current travails, Russia will remain the strongest military power in Eurasia and the only power in the world with the capability of destroying the United States,” the Defense Planning Guidance reads. The document reiterates several times that the U.S. must prevent a possible Russian “hegemonic position in Eastern Europe”: “Should there be a reemergence of a threat from the Soviet Union’s successor state, we should plan to defend against such a threat in Eastern Europe.”
From Crimea to the Arctic
The West’s fears may not necessarily have been justified, but they intensified after President Putin’s position became stronger in Russia. In the past, Russia’s possible revisionism would be mentioned – in fact, very rarely so – in classified U.S. National Security Council documents. Nowadays the West talks about it openly and frequently, and for good reason too: Moscow has been actively restoring its influence in the geopolitical arena since 2014.
First Russia took over Crimea, and then it launched a military operation in Syria in 2015 while simultaneously attempting to restore its positions in the Middle East and actively negotiating with governments in the Gulf following a sharp drop in oil prices. In October 2017, the king of Saudi Arabia, one of America’s key Middle Eastern allies, paid a visit to Moscow. Since 2015, Putin has regularly held bilateral meetings with Mohammad bin Salman, the crown prince of Saudi Arabia: in Moscow, Sochi, St. Petersburg, and on the sidelines of the G20 summit. At least seven such meetings have been held to date, and Putin is planning to visit Riyadh in October 2019.
In addition, Russia probably sees itself as a new mediator in the Palestine-Israeli settlement process. Putin has held at least eight meetings and three phone conversations with Palestinian President Mahmoud Abbas since 2014. Over the same period, Putin has spoken with Israeli Prime Minister Benjamin Netanyahu more than 40 times and held some 11 personal meetings with the Israeli official: mostly in Moscow but also once in Paris.
According to Russian and international media, which quoted anonymous sources close to the Libyan authorities, the Russian Ministry of Defense, and British intelligence services, Russia opened a new foreign political foothold in October 2018 by sending troops to Libya in support of the field commander Khalifa Haftar, the head of the Libyan National Army. Haftar, who controls Libya’s eastern regions, had previously visited Russia and repeatedly met with senior Russian officials, including Minister of Defense Sergey Shoigu. In fact, Moscow supports the Libyan forces opposed to the UN Security Council-recognized Government of National Accord, which is headed by Prime Minister Fayez al-Sarraj.
In 2019, Russia openly declared its interests in Venezuela, where the Juan Guaido-led, U.S.-backed opposition forces had attempted to depose President Nicolas Maduro, whose economic policy they believed to be untenable and destructive to the country. Indeed, Venezuela was living through a drastic economic and social crisis, with inflation going through the roof at 130,000%: the population found itself on the poverty line and took to the streets in protest. The U.S. and its allies (more than 50 West European and Latin American states) supported Guaido, who had declared himself the new president. Russia and China backed Maduro.
Media reports emerged in March to the effect that 99 Russian troops had arrived in Venezuela. Washington then demanded that Moscow withdraw the troops. The Russian Ministry of Foreign Affairs replied that “the presence of Russian specialists on Venezuelan soil” did not contravene the Venezuelan constitution and strictly complied with the bilateral military-technical cooperation agreement that Moscow and Caracas signed in May 2001.
The Russian and U.S. presidents have repeatedly discussed the Venezuela issue during telephone conversations and personal meetings; U.S. Secretary of State Mike Pompeo and his Russian counterpart Sergey Lavrov have also actively discussed this matter. In the meantime, Western journalists, experts, and politicians suggest that Venezuela is becoming yet another topic for the ongoing Moscow-Washington conflict, which is starting to resemble a new Cold War.
Russian revisionism can be found even in Africa. Leading U.S. news outlets report that Moscow is strengthening its positions on that continent. Russia has been steadily expanding its military influence across Africa, alarming Western officials with investments in local mineral extraction and energy projects, increasing arms sales, security agreements, deployment of mercenaries, and training programs in support of local dictators, The New York Times reports. Bloomberg, for its part, says that Russian political advisors rig elections in African countries in favor of candidates that suit Moscow.
Finally, the West is concerned about Russia’s Arctic activities. The New York Times cites NATO spokesperson Dylan White as saying that Moscow is bolstering its military presence in the Arctic. U.S. intelligence services suspect that Russia is conducting low-yield nuclear tests on Novaya Zemlya. “The United States believes that Russia probably is not adhering to its nuclear testing moratorium,” says Lt. Gen. Robert Ashley, Director of the U.S. Defense Intelligence Agency.
Any Arctic move by Russia invariably causes concerns. The website of the TV channel Current Time points out that Russia has, since 2016, launched the nuclear-powered icebreakers Sibir, Arktika, and Ural: “Moscow has not built so many vessels of this class since Soviet times.” On the other hand, Russia sometimes offers a good reason for concern, and the West usually interprets Moscow’s statements in the context of possible aggression.
Shoigu said in December 2017: “Over the past five years, 425 facilities with total area of 700,000 square meters have been built on Kotelny Island, Alexandra Land, Wrangel Island, and Cape Schmidt in the Arctic. They house over 1,000 troops complete with missionized weapons and equipment.” Shoigu added that Russia would continue its efforts to build “a full-blown airfield” on Franz-Josef Land that would be able to handle aircraft movements around the clock. The minister stressed that not a single country had previously managed to implement any such massive-scale military projects in the Arctic in the entire history of the region.
By 2020, Russia is planning to complete construction on or modernize six military bases in the Arctic. In this light, it is quite understandable that the West treats such plans with suspicion, despite Shoigu’s assurances that Russia is “not rattling its saber and not intent on waging war against anyone.” However, the second part of his statement – “at the same time, we would not recommend anyone to test our defensive capacity” – sends a totally different message to the West: Russia is not intent on living with the old world power and will act based on its own national interests.
The Russian dossier, again
“They are doing it as we sit here,” former Special Counsel for the U.S. Department of Justice Robert Mueller said during a June 24 hearing in the House of Representatives Intelligence Committee as part of comments on Russia’s alleged interference in the upcoming November 2020 elections in the U.S. Mueller’s testimony indicates Washington’s serious concerns.
The Mueller probe, whose results were made public this past spring, exposed Russia’s interference with the 2016 presidential elections in the U.S. Even though Moscow has been consistent in denying any attempts to influence the results of the 2016 presidential campaign and dismissing Washington’s attitudes as lunacy and “Russiagate hysteria,” the U.S. is convinced that the Kremlin is lying. In this sense, Russia’s alleged interference with the U.S. election may be viewed as a form of revisionism.
Putin, for his part, has repeatedly accused the U.S. of interfering in Russia’s internal affairs, including the organization of protests during the 2011 and 2012 parliamentary and presidential elections. The Kremlin continues to reiterate the thesis that the U.S. is instigating “color revolutions” in post-Soviet countries. So, if one takes into account U.S. statements about Russian interference (including Mueller’s viewpoint), then Russia denies its involvement in the U.S. presidential race while letting Washington know that, from now on, it is not just the U.S. but also its geopolitical rivals that can influence political processes in other countries.
Lost in translation
How should Russia respond to the constant accusations of revisionism? Before we answer this question, one needs to understand the causes of this revisionism. There are two, and they are not hard to grasp.
First, Russia and its political elites are suffering from a post-Soviet inferiority complex. Moscow has always attempted to prove to Washington that it is more than just a regional power; that it can be an equal partner for the West and not just its “little brother”; that both sides won the Cold War, not just the U.S.; and that Russia’s national interests, including those in other regions, need to be reckoned with.
This inferiority complex is evident from both Russia’s history (from way back when it was indeed respected internationally) and from Putin’s numerous statements in which he says, time after time, that the West has virtually never reckoned with Russia and always attempted to “drive it into a corner.” At the same time, in his 2005 interview with CBS, Putin said that a cornered animal “turns back and attacks you, and does so very aggressively, pursuing the fleeing opponent.” It is no wonder, then, that Internet channels of Russian government media currently put up headlines along the lines of “Putin has driven the presumptuous West into a corner!” If we are to resort to metaphors, then revisionism, in effect, constitutes an attack on and the pursuit of the opponent in response to an insult.
The second cause of Russia’s revisionism is the Western superiority complex, namely America’s conviction that it won the Cold War. Back in 1992, Washington stated in no uncertain terms in its Defense Planning Guidance that it was the U.S. who was the victor and not Russia. The excessively protective attitude of the U.S. towards Russia, as well as NATO expansion, which the Kremlin opposed, ultimately led to Russian political elites growing disillusioned with the West and turning their back on it. This resulted in a crisis of trust between the two countries and the “new Cold War,” complete with all its attributes such as increased state propaganda on both sides, the arms race and a war of ideologies, which has transformed into a confrontation between Russian-style state capitalism and the U.S. liberal democracy in the 21st century.
To a certain extent, this new confrontation between Moscow and Washington involves framing, i.e. the creation of notions and definitions that reflect the way the conflicting sides think. In this sense, Russia and the U.S. speak totally different languages and live in different universes: what the West perceives as revisionism and aggression is, to Russia, the restoration of justice and the protection of its national interests in the ruthless world of geopolitics. Russia proceeds from the premise of neorealism, in which revisionism is rather a norm than a deviation. In Russia’s view, revisionism means protecting its national interests, not the desire to aggravate confrontation with the U.S. The West, for its part, leans more on idealism or the critical theory: within their frameworks revisionism might be destructive in its nature. No matter what Russia does, its actions will cause fear, criticism, and condemnation in the U.S.
In this sense, Moscow, just like Washington, should develop empathy: the ability to see the situation through the opponent’s eyes. If the parties learn this, any recriminations will not resonate so strongly, and the two countries will be able to react to each other’s actions in a more reasonable manner. This skill will allow them to avoid excessive emotions in their dialogue, which is so important today.
In practice, this means that Moscow, for example, should recognize, understand, and respect Washington’s concerns with regard to Russian interference in U.S. elections. Rather than ridiculing the U.S. and dismissing Mueller and Congress probes as Russophobic hysteria, Russia should avoid such statements and propose more constructive ways out of this deadlock. This is the only way to restore at least partial trust and create a new platform for dialogue.
A “non-interference pledge” would be a step in the right direction and a good example of this approach. In mid-June, Russian and U.S. experts proposed the concept in connection with the mutual accusations of attempts to influence elections through modern technology. The essence of this hypothetical agreement is that Moscow and Washington should develop a set of rules that would oblige the parties “not to make public information of political significance obtained by state agencies,” not purchase political advertisements on social media, and refrain from public assessments of the quality of elections “before international observation missions issue their reports.”
This also applies to other issues: in response to the West’s accusations of revisionism, Russia should not deny the facts and attempt to defend itself; rather, it should begin the dialogue with the words: “We understand you.” This approach sets a positive tone for seeking a compromise. Even if the Kremlin sees statements by U.S. or European colleagues as exaggerated or contrived, it stills needs to persuade Washington that Moscow is ready to cooperate in order to get out of the current crisis in mutual relations. However, this equally applies to Washington: if the U.S. resorts to raising confrontational rhetoric to the detriment of empathy, the existing problems will remain unresolved.
From our partner RIAC
Russia’s Blueprint For Success in the Middle East
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.
Russian Authorities Going Forth and Back with Migration Policy
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.
Russia’s Far East: Transforming the Space into Modern Habitable Region
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.
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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