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Possible West-Russia Rapprochement and its Impact on South Caucasus

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In the West analyses abound on possible rapprochement between the West and Russia. This is mainly caused by China’s rise and the West’s fear that Russia could eventually be lost to Beijing’s economic, military and technological superiority. The possible West-Russia rapprochement will have a direct impact on the three South Caucasus states. Each country will react differently, but overall the three oppose the idea of a possible Western withdrawal as it will increase Russian influence and limit diversification of their foreign policy.

China and the US are in the midst of emerging global competition. Russia is an important player to watch as both Beijing and Washington will try to gain Russian support for their respective geopolitical visions. Surely, the US can confront Russia and China simultaneously (as it does currently), but with Russia being drawn closer to the West, the US will be better positioned to confront the rising China.

Instead of focusing on Russia, containing it through a wider support for the vulnerable territories from the Baltic to the Black Sea, the US is now shifting its attention away from the Russian borders to the rising Indo-Pacific region. For the Russians this shift means that American power will be depleted elsewhere.

Another feature of Russian thinking is that the US-China conflict might enable it to advance their own interests, which have been limited by the West over the past three decades. This was mostly evident in the former Soviet space. The successful western expansion into Russia’s neighborhood halted Moscow’s projection of power. The Russian political elite thus sees the nascent US-China competition as a chance to enhance its weakened geopolitical position across the former Soviet space. 

Russians believe that both Washington and Beijing will need Russian support. This logic is driving the Kremlin’s approach towards Beijing and Washington. Russia wants to position itself to have the US and China strongly competing with one another to win her favor. If Moscow sides with the West, the concessions to Russia could be more significant than that those potentially offered by the Chinese. Ukraine and the South Caucasus would be the biggest prizes, with NATO expansion closer to Russia’s wishes.

For the moment, this tentative rapprochement might sound highly hypothetical. But Russia has its own reasons to worry about rising Chinese influence, which in the next decade or so could drive the Kremlin towards finding a compromise with the West. This in turn makes one think that in the long run Russia is interested in having the Western counterbalance to China.

West-Russia rapprochement will primarily impact the lands adjoining Russia, or what we commonly call the borderlands, which mostly consist of the former Soviet republics. Ukraine and Moldova have territorial problems with Russia, while in the South Caucasus there is a mixture of territorial issues with Russian economic and military overbearance.

Let us start with Georgia. Perhaps a tentative West-Russia compromise would cool down the existing Russo-Georgian confrontation. However, many in Georgia fear that possible improvement of West-Russia relations could potentially mean Washington’s abandonment of larger aid to Georgia and the latter’s hopes for NATO aspirations.

Tbilisi’s fears are aggravated by the developments in the EU too. Since the Ukraine crisis in 2014, Brussels and Washington have been working in concert to impose and keep economic sanctions against Russia. This combined western resolve also meant the gradual increase of NATO troop presence in eastern Europe.

However, Russia’s recent return to PACE and the restoration of military cooperation between France and Russia (frozen since 2014) indicate that changes in Russia’s EU policy might be forthcoming. It should be added that the French president has insisted on the need to build more stable relations with the Kremlin. In several successive interviews Macron warned that Europe might eventually lose Russia to China. 

More importantly, these statements and political moves coincide with a widening gap in between the transatlantic allies. The US’ policies are often at odds with European security imperatives. Take, for example, the US’ decision to cut down its troop presence in Germany by some 9 500 soldiers. A significant decrease whose meaning for the Russians is unmistakable – the US is increasingly unwilling to commit itself to the defense of the European mainland.

Differences in the West cause fears for Georgia. A rethinking of Georgia’s foreign policy might need to take place. It is no surprise that in September 2019, Georgian and Russian FMs (David Zalkaliani and Sergey Lavrov respectively) held a meeting for the first time since the Russian-Georgian War of 2008. It is likely that similar meetings could take place in the future. However, it is also worth stating that a full re-establishment of diplomatic relations is unlikely to happen.

Thus, any decrease of Western support for Georgia will have direct impact on the security of the country. Russia will try gradually increasing its influence through economic and political means. In the long run, this could sap Georgia’s resolve to pursue pro-western policies.

For the moment however, the US continues to support Georgia. For instance, since 2010, US non-military aid to Georgia stands at $64 million a year on average. This sum does not include various programs such as the five-year Millennium Challenge Corporation grant of $140 million to support education. As for the military, in 2018, US military aid to Georgia reached $40.4 million. 400 Javelin portable anti-tank missiles were also sold to Georgia.

The pandemic further underscored the US’ support when its Department of Agriculture (USDA), Food for Progress programme, donated 27,000 tonnes of high-quality wheat to support Georgia when Russia prohibited exports of this product.

Additionally, a string of letters and statements coming from the US senators and congressmen over the past several months indicate the US is deeply involved Georgia’s fate.

Apart from the US, the EU too, despite the pandemic-related troubles, showed continuity in its approach to its eastern neighbors. In March a new Eastern Partnership was introduced – a milestone development as the project was feared to stall significantly.

The West’s collective approach to Armenia and Azerbaijan differs. But there are crucial interests which the EU and the US intend to pursue. Those are mainly regional infrastructure projects such as pipelines, railways and roads connecting the Caspian with the Black Sea.

Potential West-Russia rapprochement will have a lesser impact on Armenia and Azerbaijan. However, the two countries are not interested in having larger Russian influence in the region. The EU and the US represent a certain counterbalance for Armenia and Azerbaijan against the Kremlin’s geopolitical ambitions. Western withdrawal from the South Caucasus would bring a longer stalling of the Nagorno-Karabakh problem. Dependence on Russian trade and military support will increase leaving little room for the geopolitical maneuvering we witness from time to time: Azerbaijan and Armenia seeking other sources of military technology from Pakistan and India respectively.

Azerbaijan fears that an increased Russian influence as a result of tentative West-Russia rapprochement could result in the blocking of Azeri gas/oil from reaching the Mediterranean. This re-routing of exports to Russian pipelines is what Baku fears the most.

Overall, it could be argued that a certain change in perspective is taking place in the West. Loss of Russia to China is now widely discussed and different visions are being put forward to mend relations with the Kremlin. The rapprochement is still a far-fetched scenario. As shown above, the US and EU show a continuous resolve in supporting Georgia. Nevertheless, the South Caucasus needs to be discussed within the wider Eurasian context. The region could find itself in an uncomfortable place of being a bargaining chip between Russia and the West if the latter decided to have the Kremlin on its side in a growing competition with China. To avoid this situation, South Caucasus states should diversify their foreign policy and cooperate closely with the collective West.

Author’s note: first published in Caucasus Watch

Emil Avdaliani specializes on former Soviet space and wider Eurasia with particular focus on Russia's internal and foreign policy, relations with Iran, China, the EU and the US. He teaches history and international relations at Tbilisi State University and Ilia State University (Georgia).

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Biden-Putin Geneva Summit: Even A Little More Than Nothing Means A Lot

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Was the, with little expectations, but a lot of combinations and nervousness, awaited summit of the Presidents of America and Russia, a failure? It was not. And can it be described as a success, as a breakthrough from the winter of a renewed Cold War? Again – no! So what was this summit then, what – if anything – did the Geneva meeting bring?

It was an attempt that could not be written off as a complete failure, it was an indication that – as President Biden said – there is no alternative to face-to-face talks. And it was a hint of hope that the two great powers, one a superpower and the other much more than a regional power, as President Obama mockingly called it, might be able to set out to identify common interests and work together in those areas, as well as find ways and methods. to resolve what is in dispute in their relationship. Where we should not forget the saying  by Lev Tolstoj, quoted during his press conference by President Putin: “In life there is no hope, there is only a promise of hope.”

And it is that promise of hope, what we can call the only tangible result of the summit which lasted about three and a half hours, instead of the announced five to six. Of course, this will fuel new speculations and different interpretations from those that Biden was tired and lost the concentration, to the one that the participants reached a deadlock but – not wanting to make things even worse, than they already are – simply stopped.

Of the concrete results, the world has learned only one, just one: two states are returning their ambassadors to their places: the Russian ambassador is returning to Washington, and the American to Moscow. Everything else remained in the domain of what Biden defined, correcting one journalist who aggressively asked him: “And how can you be confident, that . . .?”. He said, namely: “I did not say  I’m confident, but we ‘ll see.” And what we should see is the continuation of talks on the control and hopefully arms reduction (nuclear in the first place), the formation of a working group between the two countries that would deal with the cyber attacks, so-called hacking. Then (and again the announcement!) the possibility of talks on the exchange of arrested American citizens in Russia, ie Russians in America, as well as the approach to the problem in Ukraine based on the agreement from Minsk (confirmed by both presidents!). And what is particularly important: a joint effort to achieve strategic stability.

About this and only about this, not about the whole meeting, a joint statement by the two Presidents was published: “The extension of the New START agreement demonstrates our commitment to the control of nuclear weapons. Today, we reaffirm the principle that nuclear war cannot be won and that it must never be fought . “It may not seem like much, but it is. Today, it is!    

Both sides agreed, and the two presidents held separate press conferences, that the talks took place in a constructive atmosphere and that there were no threats from either side. Putin described Biden as a sensible and experienced politician, and Biden skillfully avoided journalistic insistence on how he explained to Putin why he called him a killer : “My explanation was good enough for him and that’s enough for me.” On the other hand, the pragmatic Putin indirectly referred to Biden’s statement, quoted so many times, that, looking Putin in the eye at a previous meeting, he concluded that he had no soul. “We do not have to look each other into eyes, searching for the soul, nor do we have to make eternal friendship”, said Putin.

A confirmation that it was a summit convened with no great expectations is the fact that neither Putin invited Biden to Moscow, nor was Putin invited by Biden to Washington. But, and again, even a little more than nothing, is much, especially when we take into account the circumstances in which the Geneva summit was held and all that happened in previous years.

Of course, the US side “recited” their compulsory program of complaints regarding Russia’s violations of human rights, including the statement that the deaths in jail of opposition leader Navalny would be “a disaster” for relations of the two countries. In doing so, Biden went a little too far, arguing that the struggle for human rights is something that is part of the American being, “it’s us,” consciously forgetting that the United States from their beginnings until the sixtieth of the last century denied basic human rights, initially even freedom, to all its colored citizens, that the first unit composed of colored Americans enlisted in the U.S. Army only in World War II (but separately from whites) , and that cases of racial discrimination even today happen practically on daily basis. Putin, as it could have been expected, used this at his press conference to counter every question related to the human rights in Russia (what was by CNN, not denying anything of what Putin said, proclaimed as a return to the methods of Soviet propaganda). Too bad no one remembered to ask what the consequences would be and for whom if Julian Assange would die in jail.

Almost “under the radar” passed a significant concession made by the United States, ie the deviation from their previous position. The intention (however, this is just the announcement) to form a working group of the two countries to deal with the cyber attacks means that in silence the accusations that such attacks were staged by Russia, the Russian secret services, and even Putin himself, were abandoned.

The atmosphere, not only the one in which the Geneva summit was held, but the one in the Western world, could be deduced the most from the behavior of journalists who were questioning the two presidents. It is neither uninteresting nor unimportant to mention that American journalists could have been present at Putin’s press conference, while Russian journalists were banned from Biden’s. press conference. But it was these American journalists who behaved at both press conferences like barking dogs (which is not to say anything bad about dogs). In their questions they insisted on confrontation, on the continuation of confrontation ( “Have you threatened to use military force ? “, was one of the questions to Biden). One of the most evident examples of pre-prepared questions, no matter what, and certainly regardless of the facts, was the one about Russians demanding that journalists of Radio Liberty (the Russian version of Radio Free Europe) register as “foreign agents “. Putin, namely, previously explained, and it is a matter of common knowledge to anyone who is familiar in the media scene, that it were the Americans who first demanded that Russian journalists in the United States register as foreign agents. Then, and only then did Russia introduce the same for the American journalists working there.

But obviously it is true that what one can do, another cannot do. Along with the sad statement that a large part of the journalists in the West, consciously or not, accepted to be turned into a propaganda weapon of the ruling.

So it is not at all impossible that Biden, although “secured” by the presence of his experts, from the Secretary of State to the Chief of the Joint Chiefs of Staff, as well as with a separate press conference, will experience in America something similar , albeit in a milder form, to what befell Trump after his talks with Putin in Helsinki. Obviously, there are strong forces in the United States (which then influence the behavior in the first place of the Atlantic Pact, but then the European Union too), which are not interested in peace and understanding, which base its existence on confrontation, on the existence of enemies. Real, or imaginary – it doesn’t matter. And obviously there is a propaganda apparatus that serves them. They simply cannot like Biden’s statement that his agenda is not against Russia, but for American people.

But if that statement becomes what will make the summit memorable (in the city of peace, as the Swiss president said while welcoming Biden and Putin), then it is entirely justified to say that the meeting, which was by no means spectacular, which lasted shorter. than it was expected, which did not result in any key breakthroughs in any area, was not in vain. Because, if there is a President in the White House whose program is not to “work against Russia” and if Putin knows that now, then there is a chance that the world will move away from the edge of general chaos into which it is inevitably pushed by the worsening American-Russian relations. Then there is, as Tolstoy would say, a promise of hope.

*The first superpowers summit that, Mr. Jakic personally covered was a Carter – Brezhnev meeting in Vienna 1979.

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Biden pushed China and Russia to rebel against one other

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Official White House Photo by Carlos Fyfe

Biden’s anti-China measures have been increasingly regular in recent years. He not only continued to encircle China with his Asian and European friends, but he also began with Russia’s ideals. Biden used the occasion of the US-Russia meeting to instigate Sino-Russian ties, encouraging China and Russia to be “anti-objective” in order to cause difficulty for China. However, Biden’s wishful thinking is clearly incorrect, because Putin has already demonstrated through actual acts that he will not be duped by Biden.

According to a transcript of the press conference posted on the White House website, Biden stated after meeting with Putin that he felt the last thing Putin wanted to see was a cold war with the US. When discussing this problem, Biden brought up China, portraying it as a “danger” to Russia. Biden stated that China is currently expanding, whether economically or militarily, and that China has “big objectives.” Russia’s economy is suffering and needs to grow. As a result, he does not believe Putin desires a cold war with the United States.

In reality, Biden has already provoked Russia on a number of topics. At this point, he abruptly shifted his advantage to Russia. There must be something odd going on. Prior to the arrival of the US-Russia summit, Biden is said to have stressed his desire to build a “solid and predictable” relationship with Russia. Some experts say Biden wants to soften his ties with “established competitors,” such as Russia, before focusing on the “new strategic competitor,” China.

At the time, Biden wanted to focus not just on fixing China’s difficulties, but also on enlisting Russia’s assistance in dealing with China. However, Biden obviously misjudged the extent of China-Russia relations while overestimating the US’s own affinity to Russia.

Prior to the meeting, Putin stated in an exclusive interview with US NBC that Russia does not consider China to be a danger. China is a friendly country that has not declared Russia an adversary, as the US has. Putin also stated that due to the nature and quality of Sino-Russian ties, Russia will not be concerned about China’s development.

In reality, not just Putin, but many officials from both countries have jointly confirmed China and Russia’s deep relationship. Previously, Russian Foreign Minister Sergey Lavrov claimed that Sino-Russian ties are at their highest in history. Wang Yi, China’s State Councilor and Foreign Minister, also stated that the “China-Russia combination” is as strong as a mountain. The more volatile the globe, the closer China-Russia collaboration. Take a strong step forward. In contrast to Russia and the United States, Putin has stated unequivocally that Russia-US ties have reached a low point in recent years.

Under these conditions, it is nearly difficult for Biden to effectively instigate ties between China and Russia. Furthermore, China and Russia have demonstrated through actual actions that the two countries’ relationship is extremely excellent, and the two sides aim to expand friendly cooperation in other areas.

Rogozin, President of the Russian National Aerospace Corporation, stated that China and Russia are considering collaboration with a variety of parties to create an international lunar research station, and he also stated that Russia may send astronauts to China’s space station. Whether Putin provided the reassurance in person or by other means, it is sufficient to demonstrate that Sino-Russian ties are quite cordial, and there is no place for Biden to succeed. So Biden believed he could persuade Russia to negotiate with China with only a few words.

He was very naïve back then. Rather of wasting time worrying about some pointless and highly dull things to deal with China, Biden should focus on his own health, particularly cognitive problems. After all, he “cannot tell the difference between Trump and Putin.” Based on the existing circumstances, Biden should not be expecting any brilliant proposals for the future growth of the United States.

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Russia and Japan: Inseparable Partners

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By all accounts, Japan with its strong economy and many high-quality manufactured brands is practically searching to expand into foreign markets. Japan, with an estimated population of 126 million, has a small territory. According to UN’s assessment report on global population in 2019, Japan was the world’s tenth-most populous country. That compared with Russia, its vast territory and approximately 145 million, Japan’s investment is fast growing in the Russian Federation.

Despite its large investment and admirable brands from automobiles through mega-shops to healthcare and beauty, and to social service sector, Japan is consistently looking to expand its business tentacles. Without doubt, at the St. Petersburg International Economic Forum held under the theme: “Together Again – Economy of New Reality” early June, Russia-Japan business session attracted unprecedented large number of participants.

While noting the fact that the coronavirus pandemic did not and will not hinder economic cooperation between Russia and Japan, Minister of Economic Development of the Russian Federation Maxim Reshetnikov, noted in his speech at the session, further reviewed some significant aspects of the Russia-Japanese economic cooperation, and finally painted the broad outlook for the future.

“Despite a difficult year, we managed not only to continue existing projects but were even able to launch new ones. An express test for coronavirus was created, and a container train with Japanese goods was launched for the first time on the Trans-Siberian Railway. Construction began on a centre for preventive medicine in Khabarovsk. The Japanese company Fanuc opened an engineering centre in Skolkovo,” he told the gathering.

According to Maxim Reshetnikov, the plans for cooperation with Japan include the creation of liquefied natural gas trans-shipment complexes in Kamchatka and Murmansk region and the construction of an ion therapy centre for cancer treatment in Obninsk. Both countries are preparing to enter new and promising tracks in hydrogen energy, climate change, the creative economy, and e-commerce.

That however, Russia has encouraged potential foreign investors to venture into the regions. For example, Kaluga, which is provincial city and stands on the famous Oka river about 150 kilometers southwest of Moscow, has adopted few favourable measures, among others, and as a result has attracted five foreign automobile manufacturing companies including Japanese Nissan.

Governor of the Kaluga Region Vladislav Shapshа took part in the discussion. “Japan has been and remains our most reliable partner, a partner in a variety of areas. In terms of investments, this of course includes, the development of projects with Mitsubishi and Toyota Tsusho. Mitsubishi has placed its headquarters in Kaluga this year, and together with Peugeot Citroën has been working with us since 2009. Along with Volkswagen and Volvo, it makes up the core of the automotive cluster, which accounts for 12% of the automobiles produced in the country today,” Governor Shapshа said, giving a full business profile in his region.

The Autonomous Republic of Tatarstan also attracts foreign investors and business people. As part of the Volga federal district, its capital and largest city is Kazan, one of the most important cultural cities in the Russian Federation. “We operate a wonderful plant built in Tatarstan by Mitsubishi and Sojitz. I must say that Japanese equipment has proved its reliability. We are very pleased with this plant. Its capacity is 720 thousand tonnes of ammonia and methanol. We are grateful for this contribution,” Founder and Chairman of the Board of Directors of the AEON Corporation, Roman Trotsenko.

Japanese manufacturing stories are exceptionally useful and needed to be shared among business leaders. In his contribution, General Director of Sollers Group Vadim Shvetsov told the attentive gathering: “We launched a machine shop for Mazda engine parts. It was a very difficult at first, given that cooperation was interrupted, and we could not communicate directly. On the other hand, however, we have introduced a lot of interesting digital communication methods. Thanks to such mobile cooperation and even VR technologies, we still managed to launch production.”

The new environment has pushed the countries to seek new resolutions to overcome challenges. “The coronavirus pandemic has forced us into many challenges. At the same time, it has highlighted, illuminated in a new way some of the problems that we had seen and been aware of even before the epidemic. These are the problems of healthcare, energy, and digitalization. It seems to me that now is the moment for us to start new cooperation in these areas, especially in healthcare,” emphasized the Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama.

“Our trade and economic work together probably suffered a little from that period of forced isolation. Nevertheless, I certainly believe that the crisis is pushing us to search for new ways to create benefits for our consumers,” remarked Chairman of Delovaya Rossiya (Business Russia) and Chairman of the Board of the Group R-Pharm Alexey Repik.

The speakers have acknowledged that Russia and Japan face similar environmental challenges while developing economic cooperation. “Amid the growing trend of decarbonization, in October of last year, Japanese Prime Minister Yoshihide Suga announced a goal aimed at achieving carbon neutrality by 2050. Moreover, the goal is to reduce 2013 levels of greenhouse gas emissions by 46% by 2030. Achieving these targets will require that Japanese industry be heavily involved and adaptable,” according to President of the Japan Association for Trade with Russia, and Special Advisor of Kawasaki Heavy Industries, Ltd. Shigeru Murayama.

Chairman of Delovaya Rossiya (Business Russia) and Chairman of the Board of the Group R-Pharm, Alexey Repik, reminded that it is of great significance that President Vladimir Putin in his address to the Federal Assembly set the task of significantly limiting the accumulated volume of carbon emissions in our country just as similar goals were set by the Prime Minister of Japan, Yoshihide Suga, for the Japanese economy.

For the Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama, natural gas, which can reduce carbon emissions, is a very important resource, and Russia is a leader. Thus the unification of these Russian resources and the Asian market could be highly promising area for cooperation.

Russian business needs to attract investment. “The demand for equipment and the demand for capital both remain in Russia. Russia’s capitalism, in the positive sense of the word, is young and there is little national capital in the country. Interest rates on loans remain very high, and the requirements of the national bank, the Central Bank of the Russian Federation, to credit policy remain stringent,” observes Founder and Chairman of the Board of Directors of the AEON Corporation Roman Trotsenko.

“There are forecasts that the Russian economy will resume growth this year and ultimately grow by more than 3%. Japan also aims to recover as soon as possible from pandemic-related failure. For this, of course, the primary and first step to build a healthy and sustainable post-covid society across the globe, will be to work together with Russian partners on the basis of the eight-point plan,” Director of Mitsui and Co. Ltd., Masami Iijima, informed the gathering.

Avoiding sanction-related restrictions is a key for business. “The challenge is to move the financing relationship between Japan and Russia outside of these sanctions. For example, financing in euros or in yen. This would be very positive and would allow us to take advantage of the cheap rates on loans in Japan and in Russia,” Founder and Chairman of the Board of Directors of the AEON Corporation Roman Trotsenko.

Healthcare and energy partnership also remain significant for both and, need not be overlooked. “New areas are emerging. For us it is hydrogen and ammonia; it is the capture and storage of carbon, carbon dioxide, and its use as a resource. Here, it seems to me, we must increase our work together,” according the Minister of Economy, Trade and Industry of Japan Hiroshi Kajiyama.

“The health sector is the first item in the eight-point economic cooperation plan. I think that our countries should increase cooperation in this area,” added the President of the Japan Association for Trade with Russia and Special Advisor of Kawasaki Heavy Industries, Ltd. Shigeru Murayama.

“We believe that Japan can help achieve the goal of increasing healthy life expectancy set by the government of the Russian Federation,” suggested Chairman of the Japan-Russian Committee for Economic Cooperation and the Federation of Economic Organisations Keidanren and Chairman of the Board of Directors of the Marubeni Corporation Fumiya Kokubu.

Ahead of St Petersburg forum, Japanese Ambassador in the Russian Federation, Toyohisa Kozuki gave an interview to Interfax News Agency, listed a wide-range of concrete and significant projects as part of efforts toward strengthening Russian-Japanese economic cooperation. According to the ambassador, widening economic cooperation between Japan and Russia is primarily part of the current eight-point strategic cooperation plan.

Within this plan, the Okura Hotel project in Vladivostok is an example of progress in urban development in 2020. This will be the first Japanese hotel in Russia. The Okura Hotel’s refined services will make Vladivostok more comfortable and accessible not only to its residents but also businessmen and tourists visiting this international city. Vladivostok catches the attention of the Japanese as the nearest ‘European’ city, it can be reached from Tokyo by air in 2.5 hours. That is why the opening of the Hotel Okura Vladivostok will definitely make the city more attractive to Japanese tourists.

As part of cooperation, Japan is also making an effort to develop postal services in Russia, and some results in this sphere have already been reached, the efficiency of postal deliveries was increased thanks to the use of Japanese-made sorting machines at international postal exchange centers in Moscow. Cooperation between postal services of both countries is growing stronger also through the exploration of e-commerce opportunities on both sides. In the future, it is anticipated that a system will be in place, thanks to which Japanese consumers can order Russian goods online and the EMS postal service will deliver them to Japan.

In December 2020, Japanese entertainment center Round One, which brings together arcade games, bowling and other amusements, opened at the Yevropeisky shopping mall in Moscow. Round One is the most popular closed amusement parks chain in Japan. The new venue is a unique leisure venue for Moscow residents, in the sense, that they can get acquainted with Japanese culture without leaving their native city.

There is progress in promoting the use of the Trans-Siberian Railway as far as cooperation in the Far East, primarily in transport and infrastructure, is concerned. In particular, the Ministry of Land, Infrastructure, Transport and Tourism of Japan in cooperation with the Russian Railways is implementing a pilot project to promote the use of the Trans-Siberian Railway.

The first container train carrying cargo from Japan to Europe was dispatched in 2020. And those were not individual containers as before but a whole container train. This was done in the expectation that it will make it possible to ship freight more cost effectively compared to container transportation, and many Japanese companies showed an interest and took part in the pilot project.

The companies that participated in the pilot project said that against the backdrop of destabilized logistics between Japan and Europe amid the coronavirus pandemic, the use of the Trans-Siberian Railway can be seen as a third option in addition to sea and air transport.

As an example of such expectations, Ambassador Toyohisa Kozuki informed that Japan’s logistics company Toyo Trans started regular container shipping services with consolidated freight to Europe, to the Polish city of Poznan, along the Trans-Siberian Railway in February. This service provides for regular shipments every Thursday from a Japanese port. The cargo reaches Poznan in 22 days. Transit time decreases by about half compared to sea routes. We hope that the transit along the Trans-Siberian Railway will give a boost to logistics between Japan, Russia and Europe and lead to the further development of economic cooperation.

Next, regarding agriculture, forestry and fisheries, the relevant agencies of Japan and Russia in January 2020 signed a memorandum of cooperation on a joint Japanese-Russian project to increase the efficiency of agriculture and fish production in Russia’s Far East. Current projects are now getting support, and the search is on for new projects in three areas that provide for the use of technologies and know-how of Japanese private companies.

These include, firstly, increasing the productivity and export potential of soya, corn and other crops; secondly, expanding production of vegetables through expanding vegetable greenhouses in Yakutsk and other cities; and thirdly, increasing production and deliveries of fish and seafood inside and outside Russia. Greenhouse vegetable growing in Yakutsk is a particularly large project in this sphere. Greenhouses allowing fresh vegetables to be grown all year long in severe climates and permafrost have been built in the framework of this project. Construction began in 2016, it continued in 2020, and should be completed this year, 2021.

Due to the coronavirus pandemic, the forum this year was held, a combination of off-line and online format, with all epidemiological precautions observed. The Saint Petersburg International Economic Forum (SPIEF), often dubbed the Russian Davos, is the country’s main showcase for investors, attracting political and business leaders from around the world. The SPIEF is held annually, and since 2006 it has been held under the patronage and with the participation of the President of the Russian Federation.

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