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Putin’s Policy on Coronavirus

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Until now, I had respected the independent IntelliNews site, and also RT, for their reporting on important geostrategic issues, but their reporting on May 12th regarding Russian leader Vladimir Putin’s coronavirus-19 policies made some allegations which falsely suggest a similarity between his policies and the American President’s policies on coronavrus-19. 

The key document is dated May 11th and is titled “Meeting on sanitary and epidemiological situation”. Unfortunately, it was not linked to either in the RT report or in the IntelliNews report.

On May 11th, RT headlined “Paid holidays end May 12, Russia to start gradually easing coronavirus quarantine measures – Putin” and reported that, “‘Starting from tomorrow, May 12, the joint non-working period for the whole country and for all the sectors of its economy ends,’ Putin said during a televised speech on Monday. … The conclusion of the ‘holiday’ period allows Russia’s regional authorities to begin lifting Covid-related restrictions. This process will not be fast, Putin said, and all anti-coronavirus precautionary measures will remain in place. Any mass gatherings will remain banned across the country as well.” Nothing was said in that report regarding whether Putin prioritizes the public’s health or instead the nation’s economy. The general impression was that he is more concerned about protecting the economy.

On May 11th, the IntelliNews site bannered “Putin eases Russia’s coronavirus lockdown restrictions”, and sub-headed “Putin has eased the lockdown restrictions a little, but the change has more to do with restarting Russia’s stalled economy than with the population’s frustration at being kept indoors.” This report noted that “Companies will increasingly have to choose between sacking workers or going bust. The big employers have been the focus of the Kremlin’s economic aid programmes, but the SMEs [Small and Medium-sized Enterprises] have largely fallen through the cracks.” Nothing was cited there to back up that assertion regarding his being more concerned to protect large than small firms.

Here are some highlights of the actual document, starting with its opening:

Vladimir Putin held a meeting, via videoconference, on the sanitary and epidemiological situation and new measures to support the country’s population and the national economy.

May 11, 2020

You are aware of my position, it hasn’t changed. The key priority for us is people’s lives, health and safety.

The period of non-working days announced earlier expires today, May 11. Overall, it lasted for more than six weeks, beginning March 30.

This extraordinary measure enabled us to slow the epidemic, giving us the time we needed to substantially improve readiness of the entire healthcare system in case the epidemiological situation took a turn for the worse.

The number of specialised hospital beds equipped for treating severe cases was increased from 29,000 to 130,000, and we have built up equipment and supplies reserves, including a reserve capacity of ventilators, which has critical importance for us. Thank God, of course, that so far we have had to use only a small fraction of this stand-by capacity.

What matters the most is that every region is ready and has everything it needs to help people that might suffer from severe complications, and offer them specialised medical services, including intensive care. Let me emphasise that almost everyone who needs this care is receiving it.

Another very important thing is that the doctors now know much more about this disease than at the outset of the epidemic. They have gained first-hand experience as well as learned best practices from their foreign colleagues. Newly developed treatment methods rely on effective medicines, and we have been expanding their production.

Foreign experience showed that it was the failure to make the necessary preparations as well as an overwhelmed healthcare system that were the main causes of a high mortality rate, making it impossible to save those who could be saved. Let me reiterate that we are now able to provide this kind of assistance. It would not be an exaggeration to say that measures taken in advance helped us save many thousands of lives. …

Social workers are now carrying an extra workload and higher risks. Therefore, I think we need to introduce extra pay on a national level for the three months between April 15 and July 15. I would like to make it clear that the pay that was already allocated for April will reach people regardless.

Doctors at social institutions will receive an extra 40,000 rubles for a two-week shift. Those who are working directly with coronavirus patients will receive 60,000 rubles.

Social workers, teachers, mid-level medical and administrative staff will receive 25,000 rubles and if they are dealing with infected patients – 35,000 rubles. Junior medical staff will receive 15,000 and 20,000 rubles, respectively. Maintenance staff will receive 10,000 and 15,000 rubles, respectively. …

Of course, like before, all government bodies and municipal authorities will continue working, as well as facilities with a continuous production cycle, medical institutions, pharmacies, financial bodies, grocery stores and stores selling essential products.

Additionally, starting May 12, wherever possible, it is necessary to create conditions for resuming the operations of backbone industries, which include construction, industrial production, agriculture, communications, energy production and extraction of mineral resources.

These industries involve a significant number of workers and working there means the income and wellbeing of their families. It is also important that these operations do not involve direct contact with consumers – so it is possible to resume operation with low risk. Naturally, all sanitary regulations must be complied with. …

First of all, families with children. They always have a lot of things to take care of, but now if a family loses its income it is very difficult. All the more so if one of the parents, or worse, both of them, have lost their jobs. Unfortunately, this is happening in some cases.

As you know additional benefits are being specified for families entitled to maternity capital in the amount of 5,000 rubles a month per child under 3. The family will be getting this monthly amount for three months from April through June.

In addition, families with parents who lost their jobs are entitled to 3,000 rubles a month for each underage child. These benefits will also be paid for three months.

Next. We have made a decision that families with an income per person below the subsistence minimum can apply for benefits for children aged 3 to 7, inclusive, starting June 1 rather than July 1 as originally specified.

I draw you attention to the fact that these benefits are calculated, as I said in the Address, from the beginning of the year. Thus, a family who applies in June will get all the benefit it is entitled to in the first half of the year. On average (let me stress – on average) this can add up to 33,000 rubles per child, and a family like this will be getting regular benefit payments every month. The national average is 5,500 rubles per child per month.

However, I believe that this not really enough these days. Many more families with children need direct support from the state. The favourable macroeconomic conditions we have created in recent years for the progress of the economy, the rehabilitation of the banking and financial system in the country and the reserves we have accumulated allow us to take more decisions on supporting people.

In this connection I suggest, first of all, that the minimum child allowance be increased from 3,375 rubles to 6,751 rubles [per month]. This benefit is to be paid to non-working citizens, including students. As a rule, these are young parents and young mothers. It is important that we support them.

Second, I mentioned additional payments for children under 3 years old in the families that are eligible for maternity capital. But many families are not eligible because their children were born before January 1, 2020 when the new parameters for receiving maternity capital, including for the first child, were approved.

In light of this, I suggest that 5,000-ruble monthly payments be approved for such families. Moreover, they should receive this amount not only in May and June, but also for April, that is, retroactively. In this way, all families in Russia with children under 3 years old will receive 5,000 rubles a month.

And last, one more child support measure: from June 1, families will receive a one-off payment of 10,000 rubles per child aged between 3 and 16 years.

I would like to point out that this is not the time for people to waste a lot of personal time collecting all kinds of certificates and statements. Therefore, we have taken the only fair decision, as I see it, that no formal criteria are adopted for this one-off payment. The only condition is that assistance must be provided to everyone who needs it.

As I said, every family in Russia with children between 3 and 15 years inclusively will be able to submit a request for this one-off assistance starting tomorrow, online via the Gosuslgi [Public Services] Portal or through the Pension Fund, and receive 10,000 rubles per child starting June 1.

Overall, in accordance with the decisions we took today and our previous decisions, assistance will be provided to 27 million Russian children, from babies to schoolchildren. I believe that this is what state priorities should be like, especially now that we must above all take care of our elderly people and support families with children.

Colleagues,

As you know, we hold meetings with the participation of the business community on supporting and developing key economic sectors almost every week. Moving forward, we will definitely keep this process in place for devising targeted solutions and fine-tuning earlier decisions. We will discuss developments in agriculture, textiles, communications and the IT sector.

However today I wanted to draw your attention to one urgent and system-wide problem. According to the latest official figures, the number of unemployed people in Russia has reached 1.4 million, having doubled compared to early April.

This is quite a challenging situation that requires comprehensive efforts to stabilise employment and support those who have lost their jobs. I ask the Government to draft resolutions to this effect. We will discuss them at a separate meeting that will take place before the end of May. …

Consequently, there is no question that measures to support the economy, and primarily those designed to keep companies on a sustainable footing, will have to be carried out. We need to maintain jobs, professional teams, business infrastructure and capacities so as to avoid any further sharp fall in employment, while enabling business owners to restore their teams, expand operations and get the economy back on track.

Let me remind you that we have offered direct government subsidies to small and medium-sized businesses, as well as socially-oriented NGOs in the affected sectors, so that they can pay their employees salaries for April and May. The key requirement for receiving this support is to keep at least 90 percent of their employees on the payroll compared to April 1. This measure could potentially cover 4 million workers.

At the same time businesses need to understand their prospects; they need to see the horizon of the unfolding situation so they can make decisions, as I said, with a planning horizon rather than just for the next month or two.

So, we have a number of other measures.

First. I suggest that a special employment support loan programme be launched effective June 1. All businesses in the affected industries as well as socially-oriented NGOs should be eligible for it. This measure could potentially sustain 7 million jobs.

Loan volumes will be calculated based on a formula of one minimum wage per employee per month for a period of six months. The loan maturity date will be April 1, 2021.

It is crucial that these loans are accessible to businesses while banks should be interested in working with this programme. The final interest rate for the borrower will be a preferential 2 percent rate. Everything above this will be subsidised by the state. The interest will not need to be paid monthly, it will be compounded. In addition, 85 percent of the loan will be guaranteed by the state.

And the key is that if the company keeps 90 or more percent of its current jobs, after the loan matures, it will be completely written off as will the interest on it. These costs will be covered by the state.

If the number of jobs is kept to least at 80 percent, half of the loan and compounded interest will be written off.

Such loan could be used with some flexibly for paying wages and, for example, to refinance earlier no-interest, so-called “wage loan.” As you know, we are already using this employment support tool.

However, even with all the freedom to manoeuvre for businesses and other organisations, I must instruct the Government to ensure control over the basic premise: businesses must spend the funds primarily to pay wages. Any schemes like “paper jobs” or jobs with wages below minimum wage are to be excluded, totally excluded. I ask you to strictly monitor this.

And of course, along with the loan, businesses will have to co-finance wages with their own funds.

What I want to stress here is that we have supported and will continue to support businesses, but those who care about their employees are the priority. Once again, the point of providing government support is to motivate businesses to retain jobs and maintain wages.

Second, affected industries have already been granted tax and social insurance contribution deferrals for six months and will be able to pay it back in instalments over the course of a year – as business representatives asked me to do at one of the meetings. However, to simply postpone tax payments is apparently not enough right now.

Therefore, I propose cancelling these payments for the second quarter of this year, except for VAT. This measure will apply to private entrepreneurs, small and medium-sized businesses in the listed industries and socially-oriented NGOs.

Once again, to be clear, in this case, taxes and social contributions for the second quarter will not just be deferred, they will be cancelled – for April, May and June, the months that businesses find themselves in a difficult situation and are still experiencing hardships. More than 1.5 million companies will be able to benefit from this measure.

Third, last year, in four regions – Moscow, Tatarstan, the Moscow Region and the Kaluga Region – self-employed citizens, including those providing transport services, rental property owners, tutors, babysitters, etc., got an opportunity to do their businesses officially, rather than in a so-called grey area and pay income tax at a reduced rate of 4 or 6 percent. Some 340,000 people used this opportunity last year.

These people trusted the government and believed the guarantees for secure and civilised work. So, I think this aspiration should be supported and even encouraged. I propose tax rebates for taxes paid by the self-employed for the 2019 fiscal year in full.

The fourth proposal is related. Currently, people can register as self-employed in 23 regions. The number of officially registered self-employed workers is now over 650,000. I propose providing all self-employed citizens with a tax credit in the amount of one minimum wage they could use to pay taxes this year, thus retaining their own income.

Fifth, we also need to lower the fiscal burden on the self-employed in the most heavily affected sectors. I suggest that this year they be given a tax deduction in the amount of one minimum wage from their insurance payments, which will come as additional support to them at this difficult time.

And finally, the sixth measure. Government agencies providing microfinancing support for the self-employed, family enterprises and small businesses have been established and are working efficiently in all Russian regions.

I suggest that additional capitalisation be provided to small but efficient regional development institutions without delay and that 12 billion rubles be allocated for this purpose. These funds have been earmarked for the national project on small and medium-sized businesses for the next few years. I believe that this financial resource must be used now, in 2020. …

Clearly, Putin’s approach is socialistic, not at all capitalistic, as Trump’s is in America.

Investigative historian Eric Zuesse’s next book (soon to be published) will be AMERICA’S EMPIRE OF EVIL: Hitler’s Posthumous Victory, and Why the Social Sciences Need to Change. It’s about how America took over the world after World War II in order to enslave it to U.S.-and-allied billionaires. Their cartels extract the world’s wealth by control of not only their ‘news’ media but the social ‘sciences’ — duping the public.

Russia

Astana Trilateral Summit 2022: What did Russian President Achieve?

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Image source: kremlin.ru

Since he launched the fateful invasion of Ukraine in February 2022, the Russian President had not traveled outside the former Soviet territories. His only visit outside Russia was to “friendly” Central Asian States in June, where he predictably received a warm reception. The first trip by Putin outside former Soviet territories proved to be to the Iranian capital Tehran for the Astana Trilateral Summit — a forum established for the settlement of the Syrian conflict and features key players in the Syrian conflict: Russia, Iran, and Turkey. Unsurprisingly, the Syrian conflict took a back seat and the aftermath of Russia’s invasion of Ukraine dominated the discussions at the trilateral summit.

After the boycott of Putin by the Western world, the Russian leader has been attempting strategic and economic reorientation toward Asia and has achieved considerable success in making up for the losses in revenues incurred owing to the Western economic sanctions by selling oil at heavily discounted prices to countries like China and India. The trip to Iran provided the beleaguered Russian leader an opportunity to dissipate the impression of Russian isolation — no matter if the support extended is from a state under the severest of Western sanctions – Iran. The outright endorsement of his Ukraine invasion and scathing condemnation of the Western world was precisely the music Putin wanted to hearken and the Iranian Supreme Leader had plenty to offer.

Nonetheless, being under Western sanctions has positioned both the countries abreast and Russia, by offering even cheaper energy rates, has captured the energy and steel markets previously held by under-sanctions Iran. The shift did cause some resentment in Iran and Putin sought to assuage the Iranian grievances by signing the $40 billion deal between the National Iranian Oil Company (NIOC) and Gazprom for the development of oil and gas fields in Iran. Nonetheless, the suspicions do persist as the Iranian Supreme Leader pushed Russians to follow up and fulfill the agreements signed between the two countries in the oil and gas sectors.

Putin’s Tehran visit has cemented Russia’s position as an important power broker in the Middle East having friendly relations with countries on both sides of the regional Middle Eastern divide. Besides its longstanding relationship with Iran, Russia’s intervention in the Syrian civil war forestalled the almost certain downfall of Bashar’s regime and the country is also a party in the Libyan civil war, wherein it patronizes the warlord Khalifa Haftar.  Moreover, Russia now has a multifaceted relationship with the USA’s Arab allies — particularly Saudi Arabia, United Arab Emirates, and Qatar — primarily owing to the convergence of their energy interests in OPEC Plus. The Arab countries also avoided harshly denouncing the Russian invasion of Ukraine — as the West would have anticipated — so as to avoid antagonizing Moscow, and top Saudi and Emirati royals reportedly declined calls from President Biden during the initial days of the invasion.

Days before Putin visited Tehran, President Biden took a trip to the Middle East and in his address to a gathering of Arab leaders, tried to reassure Washington’s Arab allies that the superpower remains committed to the region and urged oil-rich Arab nations to increase their oil production to mitigate global oil price shock caused by the Russian invasion of Ukraine. Following Biden’s visit, the de facto Saudi ruler Muhammad Bin Salman and President Putin during a phone call agreed to keep coordinating within the framework of OPEC Plus. Accordingly, during the cartel’s meeting held on August 3rd the OPEC Plus members agreed to make a small increase in the oil production, which is unlikely to drastically impact the energy prices as President Biden counted upon.

Even more remarkably, in utter defiance of the US sanctions, Saudi Arabia is importing Russian oil at discounted price for domestic use while selling its oil at higher prices in the international market. In effect, in a major geopolitical turnaround for Moscow in the Middle East, Putin has been able to reaffirm its partnerships, and the days of Arab capitals uncritically following Washington’s lead are all but over.

Putin’s meeting with Turkish President Erdogan during Astana Summit also captured headlines — initially after the Russian President was left awkwardly standing for around 50 seconds waiting for his Turkish counterpart before their meeting and successively for the discussions between the two strongmen to strike a deal to freight the Ukrainian grain from its three Black Sea ports (the deal has now been reached). During the discussions on Syria, Erdogan reportedly talked about the Russian President as “My dear friend Putin” in an exhibition of the close relationship between the two strongmen. Though Turkey and Russia feature on the opposite sides of equations in the Syria, Libya, Azerbaijan-Armenia, and Ukraine conflicts, they have long-lasting trade and energy ties. Turkey, despite being a member of NATO, did not join the Western sanctions against Russia and is now buying more oil from Moscow. Correspondingly, Moscow looks to Turkey as a partner — nonetheless a difficult one — among a host of antagonists and as a crucial market for its energy products and wheat. Yet another meeting between the two leaders in the Russian city of Sochi further hollows Western gambits to isolate Russia for its invasion of Ukraine; meanwhile, Putin continues to assemble allies.

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Russia (Re)Schedules African Leaders Summit for 2023 in St. Petersburg

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With perspectives on making a well-designed substantive agenda, African leaders will be getting ready for the next grand photo opps, witness the delivery of those sparkling high-powerful speeches and finally sign series of new bilateral agreements during the upcoming second Russia-Africa summit scheduled for mid-June 2023 in St. Petersburg, Russia.

Despite the unprecedented sanctions and information warfare launched by the United States and its satellites, Africa has become a priority of Russia’s foreign policy, according to Sergey Lavrov, Minister of Foreign Affairs of the Russian Federation, noting further that “Russia highly appreciates the readiness of Africans to further step up economic cooperation, and the signed agreements and the results will be consolidated at the forthcoming second Russia-Africa summit.”

During his late July visit to Addis Ababa, Ethiopia, Lavrov informed in one of his speeches about broadening African issues in the “new version of Russia’s Foreign Policy Concept against the background of the waning of the Western direction” and this will objectively increase the share of the African direction in the work of the Foreign Ministry. Relating to the next summit mid-June in 2023, “a serious package of documents that will contain almost all significant agreements” is being prepared, he emphasized illustrating his passion for signing agreements.

Arguably the number of agreements signed is not the criteria for measuring success of influence in Africa. Nevertheless, Lavrov said that the two most important goals of the summit will be to sign off on “a memorandum of understanding between the government of the Russian Federation and the African Union on basic principles of relations and co-operation” and “a memorandum of understanding between the Eurasian Economic Commission and the African Union on economic co-operation.”

Russia already has thousands of decade-old undelivered pledges and several bilateral agreements signed with individual countries, yet to be implemented, in the continent. In addition, during the previous years, there has been an unprecedented huge number of working visits by state officials both ways, to Africa and to the Russian Federation.

After the first summit, Russia–Africa discussions become a permanent fixture at the St. Petersburg International Economic Forum, while Roscongress continues working on the African track until the next Forum. That Sochi summit brought together 54 African states, 45 of which were represented by their heads of state, and also attended by the heads of executive bodies of eight African regional organizations.

President Vladimir Putin and Egypt’s Abdelfattah El-Sisi underlined the importance of opportunities to develop investment and trade between which would help to strengthen relations in line with the 2063 concept [agenda] developed by the African Union. And that Russia has, with a vast array of competencies in previous years, is ready to implement joint projects aimed at improving people’s quality of life in Africa.

In total, there were 268 speakers participated in various discussions of topical issues. Resultantly, 92 agreements and contracts were signed at the summit. There were two key agreements that include: (i) Memorandum of Understanding between the Government of the Russian Federation and the African Union on basic principles of relations and cooperation was adopted at the Summit in the presence of Vladimir Putin and Abdelfattah El-Sisi.

(ii) a Memorandum of Understanding between the Eurasian Economic Commission and the African Union on economic cooperation was signed by Tigran Sargsyan, the Chairman of the EEC Board, and Moussa Faki Mahamat, Chairperson of the African Union Commission. 

Then, at the initiative of African participants, a new dialogue mechanism – the Russia-Africa partnership forum – has been created. It was agreed that top-level Russia-Africa meeting will take place within its framework once every three years, alternately in Russia and in an African state. Both Russia and Africa could not agree on the summit in 2022, and in an African country.

The Heads of State and Government from Africa and Russia adopted a final declaration that reflects the principles coordinated by the two sides, the most important of which, according to El-Sissi, are:

–. respect for international law and the UN Charter,

–. the movement towards peace and security through the creation of more equal and fair international relations

–. and a world order based on the principles of multilateralism, respect for national sovereignty, non-interference in the internal affairs of other countries

–. and the peaceful settlement of crises, as well as the protection of national identity and civilisational and cultural pluralism.

“Our declaration has reaffirmed the goals of Agenda 2063 and the 2030 Agenda for Sustainable Development. We have approved a ministerial mechanism for promoting dialogue and partnership. We appreciate all these moves and believe that they have created a solid foundation for the further development of Russian-African relations,” said El-Sissi.

In an authoritative policy report presented last November titled – Situation Analytical Report – and prepared by 25 Russian policy experts, it was noted that “the intensification of political contacts is only with a focus on making them demonstrative.” The number of high-level meetings has increased during the previous years but the share of substantive issues on the agenda remains small. There are few definitive results from such meetings. Next, there has been a lack of coordination among various state and para-state institutions working with Africa.

Late July 2022, TASS news agency reported that Russia has always offered African countries mutually partnership based on mutual interests, unlike some other partners. “We always offer equal cooperation. We offer projects that would be of interest to this or that side. It is never a one-way street other partners often offer to Africans, sometimes implicitly, sometimes openly,” Deputy Speaker of Russia’s Federation Council (Upper Parliament House), Konstantin Kosachev, said in an interview with Russia’s TV Channel One.

He noted that Russia and Africa have many spheres for cooperation. “They include high technologies, the nuclear industry, machine-building, medicine, pharmaceuticals, the development of transport infrastructure, and, naturally, the energy sector. Each of these topics are important for African countries,” he added.

That said, preparations for the next Russia-Africa summit mid-2023 are currently underway. “The Russian side aims to continue preparing the second and aims at making it as efficient as possible. The Russian Ministry of Foreign Affairs and other ministries are taking steps to build a full and mutually beneficial cooperation between Russia and the African countries, including the formation of a reliable social and economic infrastructure, food and energy security on the continent,” according to Oleg Ozerov, Ambassador-at-Large and Head of the Secretariat of the Russia-Africa Partnership Forum.

With its impressive relations, Russia has not pledged concrete funds toward implementing its policy objectives and tasks in Africa. Moreover, Russian officials have ignored the fact that Russia’s overall economic engagement is largely staggering and various business agreements signed are still not fulfilled with many African countries. There is a distinctive divide between what has been pledged and promised at high-level meetings and summits, compared to what has actually materialized on the ground. For now there is very little to celebrate, except for speeches, photo-opps and sign a new communique (joint declaration), at the next African leaders summit in St. Petersburg in 2023.

Worth saying here that African leaders are waiting to cut white ribbons marking the successful completion of Russian-managed something. Really it is time to swift from regular rhetoric and move on towards implementing the package of bilateral agreements especially those involving infrastructure investments, and further determine financing sources for concrete projects and deliver on decade-old pledges and promises made to the people of Africa.

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A Friendship Higher Than Alliance

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Xi Jinping and Vladimir Putin, image by the Presidential Press and Information Office, the Kremlin

The day of July 16 marks the 21st anniversary of the Treaty of Good-Neighbourliness and Friendly Cooperation between the Russian Federation and the People’s Republic of China. Within the contemporary framework of the Russia–China partnership, the treaty has been dubbed the “document of the century” and, judging by the dynamics of the inter-state relations, it stands all chances to become one of the most solid international bilateral treaties of our age, which is particularly valuable at a time when the entire architecture of international relations appears to be close to collapse.

Yet, we should not forget that Russia and China have arrived at the current level of strategic partnership following a centuries-long path full of many trials and regrettable errors. Nor should we forget that the two largest states of Eurasia initially went through a difficult period in the 17th century, when it came to establishing first political and economic relations, a process that culminated in the 1689 Treaty of Nerchinsk. We should also keep in mind that China, like today, supported the “new Russia” in the early 18th century, when the confrontation between Russia and Europe heated up and the Great Northern War (1700–1721) broke out. For instance, imports of Chinese goods (primarily, fabrics) played an important role in the formation of the Russian army, which emerged victorious under the leadership of Peter the Great[1]. Since then, the relations between the two states have not suffered protracted interruptions, remaining generally positive for two centuries. In mid-19th century, treaties establishing Russian and Chinese borders were signed, and the border issue was finally settled after the demarcation of 2004–2008.

The turbulent 20 th century had varying consequences for the relations between Russia and China. Times of strong friendship were interrupted by acute but short conflicts, typically rooted in ideology[2]. The partnership between the Soviet Union and the Kuomintang under Sun Yat-sen was cut short in 1927 by a sudden attack on Chinese communists organized by his successor Chiang Kai-shek. A new thaw that marked the relations during the Second World War, when the Soviet Union and the Kuomintang established allied relations, which was ultimately enshrined in the 1945 Treaty, smoothly evolved into a closer friendship and alliance when the People’s Republic of China was established, with the Sino-Soviet Treaty of Friendship, Alliance, and Mutual Assistance signed in 1950.

However, the honeymoon decade of the 1950s was followed by an era of ideological confrontation that eclipsed the 1960s and 1970s. This period of a sudden cold spell, at times turning into animosity between the neighbours, resulted in the tragic events at Damansky Island in 1969, an incident that showed how ideological differences can destroy constructive interactions between friendly neighbouring states in virtually every area, from geopolitics to cultural ties, all in a matter of a few short years.

Since the early 1980s, this negative experience helped both parties come to the firm conviction that there is no alternative to good-neighbourly relations between the two peoples and countries. General consulates of both states were reopened in 1986. The historic visit of Soviet leader Mikhail Gorbachev to Beijing in 1989 marked a rapid and unfaltering development of friendly relations between Russia and China[3]. In 1992, the two states officially proclaimed their friendly relations; and they announced a constructive partnership in 1994. Two years later, in 1996, Moscow and Beijing signed a Declaration proclaiming their determination to foster an equal and trust-based partnership with a view to strategic interactions in the 21 st century. This declaration paved the way for the Treaty of 2001.

It is highly symbolic that the treaty was signed in the first year of a new millennium, with President of the Russian Federation Vladimir Putin and President of China Jiang Zemin putting pen to paper in Moscow on July 16, 2001. The document epitomized the many centuries of bilateral relations. Not only does it reflect four centuries of good neighbourliness and friendship between the peoples of the two countries but it also proclaims a new model of relations—one that aligns with the fundamental national interests of the two states and the hopes of their peoples. The model also plays an important role in maintaining a stable multipolar world order, ensuring security and stability. Bilateral relations were proclaimed to be free from ideological biases and prejudices. The Treaty envisaged mutual respect for the historical paths and political systems. Cooperation between the two sides was to be reinvigorated by mutual political and economic interests. Russia–China relations were now based on equality, consideration for each other’s interests, and freedom from current political and ideological circumstances.

The Treaty legally enshrined the description of mutual relations as “the strategic cooperative partnership of equality and trust” proclaimed in 1996. It also formalized mutual support in protecting national unity and territorial integrity, confirming bilateral commitment to refrain from first use of nuclear weapons against each other or targeting each other with strategic nuclear missiles. It also formulated the principle of respect for choosing one’s own path of political, economic, social, and cultural development, and envisaged immediate contacts in case of threat of an aggression against one of the parties.

Besides, the Treaty contains an important legal formula, stating intent “to develop the friendship between the people of the two countries from generation to generation” (a statement that has never been used in any other international instrument). The treaty calls upon the parties to always remain friends, good neighbours, and dependable partners, and to never be enemies. This legal wording was not present even in allied treaties between the USSR and China, and it makes it possible to say that the China–Russia friendship enjoys a status higher than that of an alliance.

June 5, 2019—the year of the 70th anniversary of the People’s Republic of China and of the 70th anniversary of diplomatic relations between Russia and the People’s Republic of China—saw the adoption of a Joint Statement on Developing a Comprehensive Strategic Partnership Entering a New Era. Russia said it highly valued the fact that relations between the two states had reached an unprecedentedly high level.

Personal relations between the leaders of the two states play a very important role in shaping and bolstering such a close partnership. As of the time of writing, Vladimir Putin and Xi Jinping have met 38 times while holding frequent telephone conversations. This creates a personal touch, ensures dynamically developing relations and allows any topical issues to be dealt with at the highest level. The vertical of power in Russia, and particularly that in China, ensure top-level decisions are effectively enforced. Consequently, Russia and China enhance their political dialogue year in year out. Strategic relations of trust between heads of state constitute a political advantage for the entire system of Russia–China relations.

Over the past year, the relations between China and Russia have faced unprecedented geopolitical and economic challenges. In 2021, Russia’s relations with the West deteriorated sharply over the situation in Ukraine. Even with the heightened international tensions, China has demonstrated its readiness to lend diplomatic support to Russia once again. On June 28, 2021, Russia and China adopted a Joint Statement marking the 20th anniversary of the Sino-Russian Treaty and announced its prolongation for five years.

Finally, a Joint Russia–China statement on International Relations Entering a New Era and Global Sustainable Development was signed on February 4, 2022, following talks between Vladimir Putin and Xi Jinping in Beijing.

Back in August 1997, Russia and China signed a Joint Declaration on a Multipolar World and the Establishment of a New International Order, advocating multilateralism ever since. In their Joint Statement of February 4, 2022, the parties announced that “no State can or should ensure its own security separately from the security of the rest of the world and at the expense of the security of other States.” The parties called for a new kind of relations between world powers—operating on the basis of mutual respect, peaceful coexistence and mutually beneficial cooperation.

The Statement also emphasized that the inter-state relations are superior to political and military alliances of the Cold War era, that friendship between the two states knows no limits, that there are no “forbidden” areas of cooperation, that enhancing strategic bilateral cooperation is neither aimed against third countries nor affected by the evolving international environment and circumstantial changes in third countries. Vladimir Putin said that these relations have become “a paragon of efficiency, responsibility, and aspiration for the future.” Such words have established unprecedentedly close political relations between Russia and China, and the subsequent events of February 2022 showed that it was these relations that took the world into a new era.

From the first days of the conflict, China’s response to the events in Ukraine has been quite positive for Russia. China is consistent in its stance that the conflict was provoked by NATO’s expansion, while the sanctions that the West has imposed on Russia are at odds with international law and they are provoking a global economic crisis. Besides, Chinese diplomats stress that the conflict has to be resolved through speedy talks and that historical roots of the conflict also need to be taken into account. These statements are quite in alignment with Russia’s stance.

In a telephone conversation on June 15, 2022, the Russian and Chinese leaders reaffirmed the successful development of Russia–China relations, notwithstanding a broad range of global changes. At the same time, the Chinese President reaffirmed Beijing’s independent stance on the Ukrainian issue with account for historical facts and realities.

The telephone conversation that took place on Xi Jinping’s birthday also happened to be on the eve of the key Russia–China session at the St. Petersburg International Economic Forum on June 16. Over 40 Chinese companies (ten of them with annual revenues of over RUB 20 bn.) participated in the Russia–China business dialogue moderated by the heads of the Institute of Far Eastern Studies (now the Institute of Chinese and Contemporary Asian Studies of the Russian Academy of Sciences) and the Union of Chinese Entrepreneurs in Russia. The delegates from China made no secret of the fact that they had come to Russia with the explicit goal of filling the niches that the West had vacated in the Russian economy. Their business areas were selected to fit with Russia’s current needs: engineering, industrial equipment, automobile spare parts, petrochemical equipment, agricultural products, etc.

In his Address at the Forum’s Plenary Session on June 17, the Russian President emphasized that Russia finds it “interesting and important to cooperate with China, but it does not mean that Beijing should support Moscow in everything: China has its interests, and we need to respect them.” In turn, the Chinese leader, addressing the Forum’s attendees via video link, confirmed that “today, China–Russia cooperation in every area is on the rise […] it evidences high stress resilience and internal potential of China–Russia cooperation.”

Announcements made at the “Russia–China Business Dialogue” session included the establishment of a Coordination Council for China involving Russia’s leading academic centres and supported by the Presidential Executive Office, the Government, and the Security Council of the Russian Federation. Those in attendance were also informed that the Institute of Oriental Studies had been renamed the Institute for Chinese and Contemporary Asian Studies under the auspices of the Russian Academy of Sciences, which certainly evidences Russia’s great attention to Russia–China relations.

Therefore, the St. Petersburg International Economic Forum once again demonstrated the stability of and mutual interest in a steady development of practical cooperation between Russia and China. Today, political arrangements and joint statements are successfully transformed into economic outcomes. China has become the largest consumer of Russian energy resources, and the two governments are involved in intensive talks on establishing new routes for transporting Russia’s oil and gas into China, and these talks could produce agreements as early as this year. The reverse flow of commodities is perking up as well: in particular, an announcement on the resumption of deliveries of spare parts for civilian aircraft from China was made immediately after the St. Petersburg International Economic Forum. Cooperation in the automobile industry is also fostered. Sales of Chinese smartphones on the Russian market have surpassed those of the traditional leaders, American and South Korean brands, for the first time this year. All these developments mean that, despite sanctions pressure, Chinese companies will continue to increase two-way trade with Russia as part of the cooperation between the two states.

Bilateral military and political cooperation is on the rise. The sharply expanded geography of joint military exercises and drills is, alongside with military-technical cooperation, proof enough of this: this year, such exercises have been held in the Arabian Sea (January), the Sea of Japan, and the South China Sea (May). In July, reports surfaced that Russia, China and Iran were preparing for large-scale joint exercises in Latin America at the invitation of Venezuela.

Global cooperation between Russia and China is also reflected in their common stances in international platforms. In particular, interest in further enhancing Russia–China relations, including taking a common or similar position on issues in international politics, was demonstrated at the 14th BRICS Summit in Beijing on June 22–24, 2022 and at the BRICS Business Forum held as part of the Summit. BRICS, which accounts for 45 per cent of the global population, will overtake G7’s total share in the global GDP in the near future, thus increasing its global influence and becoming the epicentre of multilateral partnership in the interests of universal and equal development. It is by no accident that the Summit was attended by 13 countries in addition to Brazil, Russia, India, China and South Africa (BRICS+).

The leaders of Russia and China said in their addresses that the nations of BRICS stand for joint efforts to promote peace and stability around the world. BRICS enjoys support of many nations in Asia, Africa and Latin America. The five countries seek independent foreign policies and continue making active contributions to a truly multipolar system of international relations based on international law and on the key principles of the UN Charter. The Russia–China strategic partnership enshrined in the 2001 Treaty of Good Neighbourliness and Friendly Cooperation between the Russian Federation and the People’s Republic of China may serve as a model of such relations between states.

[1]G. N. Romanova, “The Genesis of Russia–China Trade Ties (17th – first third of the 18 th centuries),” Tamozhennaia politika Rossii na Dalnem Vostoke 67, no. 2 (2014): 101–111.

[2]L. P. Chernikova, “Russia–China Relations: History and Present,” Problemy vostokovedeniia 68, no. 2 (2015): 42–46.

[3]Y. Li, “Mikhail Gorbachev’s Contribution to Normalizing Soviet-Chinese Relations,” Problemy Dalnego Vostoka2 (2021): 66–82.

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