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The 2000 Declaration on Strategic Partnership between India and Russia

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On October 3, 2000, Prime Minister Atal Bihari Vajpayee and President Vladimir Putin cemented India-Russia bilateral ties with the signing of the historical agreement, the “Declaration on the India-Russia Strategic Partnership.” Two decades since the signing of the agreement, bilateral relations are hailed to have chartered new levels of cooperation amid fast changing regional and global scenarios. While shouldering mutual interests and concerns, the strategic partnership has been at the cusp of litmus test, as it has endured events such as the 9/11 terrorist attack, colour revolutions, the Georgian War, the economic depression in 2008, the 26/11 Mumbai attack, the Crimean referendum and its aftermath and the current COVID-19 pandemic. It is therefore worth reflecting on the two decades of a seemingly positive bilateral engagement between India and Russia. It is important to analyse how the agreement signed in 2000 has played a role in the continuum of ensuring the mutual understanding, peaceful cooperation and reliability between the two strategic partners. This is also an opportunity to critically evaluate the magnitude of our strategic relationship and the changes in the foreign policy priorities since 2000. Given the current global context, the key question is how prepared are India and Russia for insulating the strategic partnership amid the challenges in the post pandemic world?

The Declaration of Strategic Partnership (2000) was signed at a time when the momentum in the bilateral relations between India and Russia post-Soviet collapse had fatigued due to several factors. But the most crucial factor of them all was the renewal of the 1971 Indo-Soviet Treaty of Friendship and Cooperation in 1993. The renewed 1993 Treaty had almost written off the bilateral engagement, as Russia clarified that it was no longer willing to make any defence commitment during the time of any external military threat to India – a key security clause (Article IX) that constituted the very core of the 1971 Indo-Soviet Treaty.

The Strategic Partnership Treaty signed in 2000 gave a new lease of life as it restored India-Russia relations to respectable levels.Both the countries realised the need to develop a multifaceted bilateral cooperation in all possible spheres of defence, energy, space, nuclear, science and technology etc. India’s strategic partnership with Russia since then has been unique, intense and substantive in many ways. Mainly, the Treaty led to the institutionalization of high level political interactions through annual bilateral summits – a key feature of the agreement to foster extensive collaboration and dynamism in the partnership. The twenty annual bilateral summits held so far between India and Russia have in particular seen major agreements and initiatives undertaken to strengthen the partnership to higher levels.

Additionally, in 2010, the bilateral ties were further elevated with the signing of the “Special and Privileged Strategic Partnership.” Arguably, the partnership between the two countries has been successfully reflected in many instances at regional and global platforms. India, along with BRICS member states, abstaining its vote during the United Nations General Assembly referendum against Russia for its accession of Crimea in 2014 and Russia’s unequivocal support to India on the Kashmir issue are few cases in point.

Regarding strategic partnership in sensitive spheres of cooperation between India and Russia, defence cooperation continues to be one of the major boosters for engagement between the two countries. India has acknowledged Russia’s contribution in assisting the former in military power projection and preserving its national security interests. Although in recent times there is downgrading in the purchase of Russian defence equipment by India, the cooperation in this sphere has been unassailable given that it has progressed from buyer-seller relations to joint research development and production, high-end technology transfer that has encouraged India’s quest for indigenous defence capabilities. From the induction of INS Vikramaditya to the joint production of BrahMos missile, India-Russia defence cooperation has achieved new capacities through acquisitions and joint development. In fact, Russia’s resurgence as a military power in recent times is conducive to India’s domestic initiatives such as the Make in India project. The finalising of the S-400 missile defence system agreement between India and Russia despite the threat of imposition of CAATSA sanctions has shown India’s predictable resistance to external pressures given its historical ties with Russia.

Indo-Russian nuclear cooperation constitutes an important element of our strategic partnership. The Kudankulam Nuclear Power Plant (KNPP) has become one of the biggest success stories of India-Russia cooperation. As Unit 1 and Unit 2 start commercial operation, the process for reactor buildings of Units 3 and 4 have already begun. With the construction of 12 nuclear power plants planned, India-Russia nuclear cooperation has indeed reached new heights. India, Russia and Bangladesh signed a trilateral agreement in March 2018, for the construction of a NPP in Rooppur, Bangladesh.

Energy diplomacy has been another major element of the strategic partnership, since Russia, an export-oriented energy country, will aim to leverage its energy card with India, an import-oriented energy market. India’s interests in the Arctic, for instance, especially energy resources, are a crucial aspect for India’s growing energy security needs. India received its very first delivery from Russia’s Arctic LNG Plant. This is seen as a great step towards strengthening India-Russia energy cooperation.

The bilateral partnership, which has a global strategic connotation, has seen both the countries enthusiastically promote the idea of building a multipolar world order and changing the global financial structure. In this regard, both India and Russia have envisaged promoting a harmonious global order based on international law and collective decision-making that includes developing countries and is not monopolised by developed countries alone. India and Russia, along with other players such as China, have succeeded in establishing non-western organisations such as BRICS and SCO. The member states have, within their capabilities and limitations, established mechanisms that address economic and strategic interests, such as the New Development Bank. While BRICS and SCO have become tools of political signalling on issues related to global affairs, there however exist asymmetries among the member states with regard to economic growth performance, distribution of resources and military strength. Additionally, although China is a member of such multilateral organisations, at the individual level Beijing has exercised assertive posturing that has caused concern in India. This can be seen by its irrational border claims and actions in the Indian Ocean region. The role of Russia especially during the time of crisis between India and China is therefore anticipated to be non-partisan and meaningful.

When the Treaty of Strategic Partnership was signed in 2000, the world was at the brink of a war on terrorism after the 9/11 terrorist attacks on the World Trade Centre. Both India and Russia, at their respective level, joined the bandwagon on the global war on terror. Both parties, as bilateral partners which have been victims of terrorist attacks, voiced their interests and concerns in combating terrorism and related activities. India and Russia have therefore cooperated at bilateral and multilateral levels. For instance, through Regional Anti-Terrorist Structure, SCO member states participate in joint anti-terrorism exercises. India and Russia also share the mutual interest of preventing the proliferation of weapons of mass destruction and their possible acquisition by terrorist groups.

While both India and Russia assert their distinctive identity in world politics respectively, the strategic partnership has seen close coordination of foreign policy interests to a wide range of international and regional issues. Both countries firmly believe that intensification of the Indo-Russian strategic partnership can help respond to the challenges thrown up by global changes in a more effective way. While both India and Russia have a diverging approach on the Indo-Pacific narrative, one cannot deny that the two countries understand the need for strengthening maritime security and freedom of navigation in accordance with the universally accepted principles of international law. This includes combating piracy at sea and providing humanitarian aid during natural disasters. The two countries have shown keen interest in restoring peace and stability in Afghanistan. Eurasian integration has been a key priority in the India-Russia strategic partnership. Russia understands that in its quest for “greater Eurasia,” India is a vital player for its huge market potential, economic growth performance, military strength and enhanced position in international affairs.

Strategic partnership in space, science and technology has been a bulwark in the bilateral relations between India and Russia since the Soviet era and has continued to remain one even today. In fact, both countries have agreed to expand their relations in the aerospace sphere, an area of traditional cooperation for decades. More than 500 joint projects involving scientists and research institutes from both countries have been undertaken within the framework of various initiatives since 2000.

While critically evaluating the two decades of strategic partnership between India and Russia, it is tempting to compare India’s strategic partnership with other major global players and the strategic partnership that it shares with Russia. The new realities of the dynamic nature of international relations have definitely posed a challenge to the partnership. The pursuing of an all-alignment foreign policy has caused a certain level of discomfort in the bilateral relations. India’s growing proximity with the U.S. and Russia’s compromised defence cooperation with China and mending of ties with Pakistan in recent times has caused anxiety in the strategic partnership between India and Russia. One possible inference that one can draw is the constant comparison to the current India-Russia partnership with that of the nostalgia of Indo-Soviet ties. But one needs to bear in mind that compared to the strategic partnership that both India and Russia share with other major players, there are limitations and shrouded with lack of trust. India’s defence relations with U.S., for instance, is yet to make any substantive development in joint production and restrictiveness about its technology compared to Russia’s generosity to sharing defence technology and Russia’s relations with Pakistan is eclipsed with lack of trust and understanding. As for Russia-China relations, there is growing speculation of a possible role reversal in the partnership given China’s growth in global politics in recent times.

However, there are few stumbling blocks in India-Russia defence cooperation, especially the shifting trends in partnership, for example defence engagement between Russia and China. Russia’s current cooperation with China has emerged exclusively, as it includes cooperation in sensitive fields, such as strategic missile defence, hypersonic technology, and the construction of nuclear submarines. With Russia now collaborating with China on sensitive military equipment, allowing for the latter to be well equipped with similar and more advanced capabilities, China is a major security concern for India. Hence, given the way warfare has evolved over the years, collaboration in advanced future weapon systems, including quantum technology and artificial intelligence, should be enhanced further between India and Russia.

Indo-Russian relations are undoubtedly at the cusp of a litmus test. Nonetheless, the strategic partnership should see the future of Asia beyond the U.S. and China factors, and both India and Russia can play a decisive role in promoting their mutual interests in the region.

The rapid and uncontrollable spread of COVID-19 in the past seven months has impacted the global order and the interconnected systems. Reflecting the spirit of the partnership in times of crisis, India coordinated with Russia in organising the repatriation of Russian nationals. Russia also welcomed India’s goodwill gesture to send medical supplies to help fight the virus.

Critics have often pointed out that the strategic partnership is yet to achieve its full potential, given the fact that some of the spheres of cooperation continue to be remain obsolete, for instance, the economic relations. Additionally, given nearly 70 years of diplomatic relations, soft power capabilities, cultural diplomacy, academic exchange programmes, and labour migration are at an imperceptible status.

Trade and investment remains the weakest link in our strategic partnership and falls far short of our potential, which unfortunately is not commensurate with our high-level political cooperation. Post the announcement of the Strategic Agreement in 2000, which largely promotes the strengthening of economic relations between India and Russia, the trade cart received much required upgrade. Potential areas of trade have been explored, which include trade and investment, energy, nuclear, science and technology, pharmaceuticals, IT, steel, diamonds, fertilizers, infrastructure, heavy engineering and food products. Exploring economic prosperity, sustainable development, and free movement of people, information, knowledge, ideas and greater institutional links has also become crucial.

In fact, both countries have set a target of $30 billion worth of trade turnover and $30 billion investment in each other’s country by the year 2025. It is also heartening that new options are being explored to further expand the domain of economic cooperation, Eurasian integrity, regional cooperation, free trade agreements, connectivity and trade corridors have gained the utmost importance in the annual bilateral summits in the past two decades. The two countries have also set up mechanisms such as Intergovernmental Commissions. For example, Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC), the International North South Transport Corridor and the Eurasian Economic Union, which have emerged as immediate priority areas for strong economic cooperation between the two countries.

The Russian Far-East is another region for potential economic engagement. India’s presence in the Eastern Economic Forum (EEF) is aimed at developing trade, commerce, investment, railway infrastructure, steel plants, defence, space, ports and shipping. India has successfully participated in the annual EEF, with Prime Minister Narendra Modi calling for an “Act Far East” policy and announcing $1 billion line of credit for the development of the Far East. Other than these developments, our economic ties are focused on exploring the potential of sub-regional cooperation. Sub-regional cooperation has emerged as one of the prospective areas of cooperation and regional connectivity to add further impetus to the economic cooperation between India and Russia. The key goal is to cement and institutionalise cooperation between the States and Union Territories of the Republic of India and Provinces of the Russian Federation.

To further bolster India’s FAR ambitions, an Indian Chief Ministers delegation of four Indian states led by the Commerce and Industry Minister of India Piyush Goyal visited Vladivostok to explore the opportunities and potential of business to business (B2B) cooperation in the FAR. With the introduction of the Russian Homestead Act and India being host to one of the largest agricultural farmers’ immigration in the world, the need for both India and Russia to tap the potentials of agricultural sector is crucial. Regional connectivity needs due attention, hence the successful execution of alternative economic corridors and maritime trade corridors, such as Chennai-Vladivostok, needs prompt engagement.

The major impact of the pandemic has prompted countries to explore alternate market destinations and shifts in the business environment. The crisis has opened opportunities for countries such as India and Russia to reposition themselves in the global supply chain. Russia, with its efforts to attract investment to the Far East, and India, with its huge manpower and existing available manufacturing units, should be endorsed as potential and suitable alternatives for manufacturing, instead of developed nations.

Despite the seemingly successful bilateral relations between India and Russia, the strategic community is incomplete if there is shortfall in establishing strong people-to-people engagement. Since the Soviet collapse, bilateral relations have seen minimal cultural diplomacy, academic exchange and labour migration. Perhaps new vistas of cooperation could be explored to promote soft power capabilities between the two countries, such as cinema, which has always been one of the most successful foreign policy tools to enhance cultural exchange and people-to-people contact between countries.

The film industry is a great medium for spreading narratives, and in India movies have an immense following as well as impact on the minds of the population. India and Russia collaborated in movie production during the Soviet era, however, the trend did not last long due to the fall of the Soviet Union, among other factors. The time is right for both India and Russia to collaborate in the entertainment industry, especially through joint production of movies and creating powerful narratives related to bilateral cooperation. India and Russia must concentrate more on the content of the movie rather than joint production alone, as for the audience the content matters more than the producer. Moreover, it can have an everlasting impact on the minds of the Indian population if the content projects a Russian character aiding/collaborating with an Indian protagonist in a movie in bringing down an antagonist. Also, the Indian movie industry is always on the look for exotic locations in foreign lands. Hence, in order to attract the Indian movie industry, Russia could look into easing travel and other shooting permissions within its jurisdictions. Such an effort would not only bring closer industry ties, but also be able to showcase the Russia and its rich culture to the Indian population, thereby acting as a window of promotion for Russian tourism.

Regarding geopolitical realignment, today the global community is seeking pragmatic internationalism. The role of India and Russia is crucial in their efforts to diffuse the multipolar world system. This is also relevant for regional alliances to actively engage politically and economically, which should help bilateral relations between the two countries elevate to a higher pedestal in post-pandemic world order.

The current global situation has given rise to some daunting challenges for the partnership once again. Some of the challenges in the post pandemic world are linked to the disruptions being caused to the international order by traditional and non-traditional threats such as climate change, cyber security, health security, data protection, secure communication challenges etc. Nurturing hopes for stability and prosperity in Eurasia in the post pandemic world, bilateral relations between India and Russia and their proactive role in regional mechanisms such as SCO, Eurasian Economic Union (EAEU), and Russia-India-China (RIC) are viewed as an integral part of this construct. Regional connectivity needs due attention including the successful execution of alternative economic corridors and maritime trade corridors.

In conclusion, the signing of the milestone agreement in 2000 was the outcome of developments that took place in bilateral relations between India and Russia after the fall of the Soviet Union. The main aim of the agreement was to elevate the partnership to new level of cooperation and put speculations and uncertainties in the relationship to rest. Over the past twenty years of relations, the partnership has seen many ups and downs. Nonetheless, this has not allowed any major damage that could impact or lead to any serious conflict of interest between the two countries. Having said that, the coveted relations built over the years cannot be taken for granted. In this regard, apart from political elites and bureaucrats playing a crucial role in enhancing the relations, academicians, artists, students, the research community, think tanks and educational institutions should contribute to forming the true essence of the partnership. The youth, in particular, need to draw inspiration from each other’s rich history and cultural relevance, carrying forward the vision for a long-term partnership. The engagement of both countries in the international ecosystem in the post pandemic world has become even more relevant, as it has given rise to new challenges and opportunities. The strategic partnership between India and Russia nevertheless needs to insulate the mutual interests from challenges that emerge from within and from external factors. Perhaps, the need for a reality check and serious introspection will be crucial as the challenges are only set to grow given the dynamism of international relations.

From our partner RIAC

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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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Putin and Biden meeting – a chance for a better world

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The whole world is looking forward to the meeting of the new US President Joe Biden with his Russian counterpart, Vladimir Putin. Although the Kremlin and the White House urge people not to expect too much from the June 16 summit, one still wants to believe that a personal meeting by the leaders of the two rival powers will lead to a thaw in bilateral relations and help defuse global tensions. At the same time, statements coming from the White House about negotiation plans sound rather vague. The bottom line is about “understanding Russia’s position and its aspirations.” The impression is that hundreds of Russologists working for the State Department, NSA, CIA and other agencies are unable to provide a definitive answer to this question, and the not very young 46th President of the United States has been forced to personally go for information. Moscow makes it clear that negotiations are a good thing, but the initiative comes from the United States, so the agenda will largely be agreed right on the spot.

At the same time, there are a number of key topics that the leaders of the two countries simply can’t ignore. Of course, there will be questions about human rights that Biden wants to ask Putin so badly, but the Russian leader too may want to ask about certain “inconvenient” things. First of all, about the United States participation in conflicts in the Middle East, where the “liberation movements,” indirectly supported by  Washington continue to attack Russian and Syrian government forces. In fact, the parts of Syria and Iraq controlled by the Americans and their allies have become areas where there is no effective conflict against terrorists. The militants from that area are killing people in Germany and France, and spreading the ideas of extremism and radical Islam throughout Europe.

The United States has every right to defend its interests in the oil-producing regions, but such methods are hardly acceptable. The Kremlin apparently has obtained enough evidence of the “dirty methods” of warfare practiced by the United States in the Middle East. The spare parts for the numerous drones shot down over the Khmeimim airbase alone prove beyond any doubt the American involvement in organizing aerial attacks on the Russian military. However, a dialogue between Russia and the United States could quickly extinguish the flames of war in Syria and, more importantly, help ensure Europe’s security against terrorist attacks. So, Putin has a very important trump card up his sleeve, which he can’t fail to play. The only question is how Biden will react to this win-win move by Moscow.

As to the question about human rights, it may prove rather unpleasant for Biden. During preparations for the summit, the Swiss government pointedly indicated (apparently at the suggestion of the White House) that the vaccine race continues. Geneva is ready to accredit, without PCR tests, journalists who have been vaccinated with Western vaccines, but not with Sputnik, which has already proven its effectiveness. Needless to say, the Russian negotiators also used their own country’s vaccine. However, such a move, designed to show once again who is the “boss” in the upcoming meeting, only reflects a complete disregard for the European`s right to vaccination, and this is only the beginning. And the demonstrative support and financing of the Russian opposition – hardly gives Biden any reason for accusing Russia of human rights violations.

Even the case of the Belarusian oppositionist Protasevich, who was taken from  the plane which grounded in Minsk due to a terrorist threat immediately brings to mind the “arrest“ of the plane of Bolivian leader Morales, or the US-approved extrajudicial detention of Russian sociologist Shugalei in Libya. In addition, the long history of the Guantanamo detention center hardly gives US officials any moral grounds to lecture anyone about human rights.

If, during the Geneva summit the United States and Russia can heal the festering wound of the Middle East conflict, this would be a giant step forward in the war on terror. The question is whether Biden will try to turn the dialogue with Putin into a series of accusations to increase his approval rating back home. A similar incident has already taken place and made the 46th President of the United States to look not so good. That being said, we can hope that in Geneva Joe Biden will lean back on his many years of experience and good knowledge of Russia, and emotions will not prevent him from achieving a breakthrough in relations with Moscow and mending bilateral ties, thus easing tensions in Europe and allaying peoples fear of a new global conflict.

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Russia, Europe Discuss Prospects for Cooperation at SPIEF’21

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Despite the deep-seated disagreements between Russia and the European Union, Kremlin is indiscriminately courting European business leaders. Ahead of the 24th St. Petersburg International Economic Forum [SPIEF’21] on June 2-5, President Vladimir Putin, in an official message, emphasized Moscow would forge a closer economic cooperation with its foreign partners and ready to share experience in various areas and further called for building constructive partnerships between members of the global community and expand business ties to effectively tackle the current critical global challenges and achieve sustainable development.

“We are ready to share our experience in areas such as healthcare and digitalization, and to work with partners to build better telecommunications, energy, and transport infrastructure. We also recognize the importance of addressing key issues facing the environment and climate,” according to the president’s message released on the official website.

Later at the plenary session held under the theme A Collective Reckoning of the New Global Economic Reality, Putin said, particularly about energy connectivity between Russia and Europe – “that Gazprom is ready to fill Nord Stream 2 with gas. This route will create direct links between the Russian and German systems and will ensure energy security and reliable gas supplies for the Europeans, like Nord Stream 1” and, in addition, emphasized readiness to implement similar high-tech projects with European and other partners in the future, despite all sorts of artificial barriers in the current political environment.

That, however, during the business discussion exclusively devoted to Russia-Europe, leaders of European business noted that strategies are needed for the improvement of relations between Russia and the European Union, and the necessity to develop a consolidated response to global challenges.

“In 2020, Russia faced four challenges. First, the pandemic, second, the collapse of oil prices, third, the devaluation of the Russian local currency the rouble, and the fourth, which is an ongoing challenge, the geopolitical context that does not make things easier. At the same time, Russia demonstrated good economic indicators. The global challenges are so disruptive that we need to come up with a joint approach and cooperate in fighting the pandemic,” according to objective views of Johan Vanderplaetse, Chairman of the Association of European Businesses (AEB) and President for Russia and the CIS, Schneider Electric.

Taking his turn during the discussions, Maksim Reshetnikov, Minister of Economic Development of the Russian Federation explained that the ultimate goal is to combat greenhouse gas emissions. In this context, technological neutrality, mutual recognition, and implementation of projects aimed to reduce carbon dioxide emissions are crucial. Building these mechanisms is a subject for strong international discussion, and there are high hopes for the climate conference in Glasgow this November.

Development of 5G networks can become a new touch point for Russia and Europe. But, no country, and no government can cope with all the tasks on their own. For example, 5G requires joint efforts, so European Union and Russia must work together to deploy this technology. Now both need to work together on 5G technologies in Russia and in Europe, suggested Arun Bansal, Executive Vice-president, Head of Market Area Europe and Latin America, Ericsson.

“Russia has amazing technological capabilities, and there are great companies. If we compare them with Western companies, if we join forces [connecting to 5G], we will all benefit from this,” added Johan Vanderplaetse, Chairman, Association of European Businesses.

During the discussions, the participants acknowledged that existing problems, especially the need to achieve international agreements. “We are now probably at the most difficult point in the development of our relations since the end of the Cold War. I think both sides value our relationship. Why are we at this negative point in our development? Of course, there are territorial and geopolitical issues, issues of human rights violations. I believe that all these problems contributed to the suspension of our political dialogue, which is now affected by uncertainty. In this atmosphere it is difficult to go back to the normalization of these relations,” according to Markus Ederer, Ambassador of the European Union to the Russian Federation.

Vladimir Chizhov, Ambassador Extraordinary and Plenipotentiary, Permanent Representative of the Russian Federation to the European Union (EU) explained that most of the effective formats available for the members of the European Union and the Russian Federation for interaction are currently on hold. On the other hand, Russia has not closed a single door neither has it imposed restrictions for Europe. All suspensions were initiated by the European Union.

Some believe that there should be solutions, suggested expanding the list of green projects and finding a compromise between government and business. “We categorized nuclear energy as a green project, and this was a crucial decision. We believe that, based on the criterion of greenhouse gas emissions, based on the principles of technological neutrality, nuclear power should be seen as clean energy. And secondly, we have developed a number of transitional projects that may not meet some highest standards, but for many industries in our country this is a big step forward,” says Maksim Reshetnikov, Minister of Economic Development of the Russian Federation.

For Markus Ederer, Ambassador of the European Union to the Russian Federation, it is necessary to use the opportunity to strengthen relationship in the context of green transformation and creation of green economy, as it will be a new field for cooperation that is of high interest for representatives of European business community. The more policy becomes oriented towards the development of a green economy, the more seriously moving towards stabilizing relations between Russia and Europe.

Regional experiments that allow to introduce a system of emission quotas in the regions. “We are working on a soft regulatory framework that will allow us to implement climate projects, take into account the carbon footprint of products that will make our entire system more transparent, while at the same time we are launching a system of more stringent regulation based on regional experiments. Many countries have followed this path. We are currently in the final stage of the Sakhalin experiment, which will enable individual regions, at their will and in agreement with the business, to declare the goal of carbon neutrality and introduce a system of emission quotas with the trading system, and so on,” stressed Maksim Reshetnikov, Minister of Economic Development of the Russian Federation.

“We need to focus on reducing carbon emissions and strengthening other areas. The Sakhalin project is also a great example of enhancing our cooperation, including in the future. These are efforts that we should focus on, excluding the political context. We must work on issues of compliance with the obligations of WTO member countries. The obligations of all WTO members must correspond,” concluded Markus Ederer, Ambassador of the European Union to the Russian Federation.

The St. Petersburg International Economic Forum, popularly referred to as SPIEF, brings together international business leaders, government officials and representatives of expert and media communities to discuss various topics and jointly search for effective solutions to the most pressing challenges in Russian and global economies. 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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