President of Russia attended the plenary meeting of the 11th Eastern Economic Forum (EEF) together with President of Indonesia Prabowo Subianto, Prime Minister of Mongolia Nyam-Osoryn Uchral, Vice President of Myanmar U Nyo Saw, and Vice Premier of the State Council of China Ding Xuexiang.
The discussion was moderated by Editor-in-Chief and anchor for the business television channel RBC Kirill Tokarev.
The main theme of this year's Forum is The Far East: Development for the Benefit of People.
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President of Russia Vladimir Putin: Friends, ladies and gentlemen,
Mr Prabowo Subianto, Mr Nyam-Osoryn Uchral, and Mr Ding Xuexiang,
Friends,
I welcome the participants and guests of the 11th Eastern Economic Forum. This business event held in the capital of the Primorye Territory traditionally brings together business leaders, professionals and experts from dozens of countries, primarily from the Asian-Pacific region, of course, which is a powerful growth hub setting the development pace for the global economy as a whole.
Russia is an active member of investment and trade cooperation in the Asian-Pacific region. We are working on an equal footing with our partners and the region’s leading integration associations. Our strategic goal is to make the Far East a territory of cooperation and dynamic change in the economy and infrastructure, technological development, the training of personnel, and of course, in the social sphere. This is what our projects and programmes, and our support instruments for business and social initiatives are aimed at.
I would like to say that over the past 11 years Russia’s Far Eastern regions have attracted about 25 trillion rubles in capital investment. The dynamics of investment activity and industrial and construction growth have confidently been above the country’s average. As a result, regional GDP in the Far East has more than tripled over the past 11 years. It is a very good pace.
These figures and indicators cover a large number of modern enterprises, infrastructure and energy projects that have been launched and are working, including port terminals and railway lines, as well as industrial giants such as the Zvezda shipbuilding complex, which I visited yesterday. It is truly impressive, considering the difficulties we faced at the beginning. But the result is really very good. There are also modern high-tech facilities, such as the first production lines of the Amur Gas Processing Plant, which is a world-class facility, the Amur Gas Chemical Complex, and other facilities.
New, productive jobs are being created in the Far East, directly impacting both citizens’ incomes and the labour market. Incomes here are slightly higher than the national average. True, the cost of living is also higher, but earnings have increased. Just 20 years ago, the unemployment rate in the Far Eastern Federal District stood at around 8 percent, while the national average was a percentage point lower. This was a lingering legacy of the 1990s, when it was difficult to find promising, well-paying work in the region, particularly for young people.
Since then, unemployment in the Far East has dropped to just a quarter of that level. This year, it stands at 2.2 percent – on a par with the national average and a record low for the region.
For comparison, the highest unemployment rate ever recorded in the Far East was 16.4 percent in 1998.
Compared to that figure, the current rate represents less than one-seventh of that figure.
Strong economic activity is now observed across virtually all Far Eastern regions of the Russian Federation. This is particularly noticeable in small and medium-sized businesses that employ approximately one-third of the working population, which is a positive indicator. What does this tell us? It tells us that the Russian Far East is on the rise. Businesses and entrepreneurs see prospects for growth and expansion, and citizens understand that their knowledge and skills are in demand and can deliver tangible results – for the region, for the country as a whole, and for individuals themselves.
I repeat: the dynamics of the Far East’s key macroeconomic indicators continue to outpace the Russian average. This is precisely what we set out to achieve when we declared the region’s development a strategic priority for Russia throughout the 21st century. This is our shared success – a tangible result, the current culmination of systematic efforts by government agencies, businesses, entrepreneurs, and, above all, the people of the Far East themselves.
I would like to thank everyone who has contributed, and continues to contribute, to this major undertaking, so significant for our country. We also greatly value the participation of our foreign partners and investors who are channelling capital and technology into development projects, not only in the Far East and the Arctic but across Russia.
Today, we can confidently say that a solid foundation for the Far East’s accelerated growth has been laid. Its resource, industrial, and logistical capabilities have increased significantly.
Using this as the basis, we are proceeding to the next stage, the implementation of the updated Development Strategy for the Far Eastern Federal District for the next ten years, through 2036. Its key task is to maintain the high development speed, launch new investment cycles, and dramatically increase investment in three key areas.
The first sphere includes industrial, infrastructure, tourism, creative and other projects focused on domestic demand, on increasing the national market capacity, and the growing requirements of the Asian region as a whole.
Second, attracting funds to innovative companies, developing the infrastructure of the digital and platform economy, as well as implementing front-end technologies, including artificial intelligence, biotechnologies, new energy and other promising spheres, which must be done on the basis of the country’s most advanced regulation.
The third and basic priority implies new investments in education, healthcare, culture and sports infrastructure, village and city development on the basis of well-considered master plans, and the creation of a comfortable, modern and well-appointed living, working and recreation environment. These are not just words. We fully realise that it takes people to develop these industries and implement innovative projects. And modern and highly educated people will not live in conditions that do not meet their high standards.
To implement these plans, we need bold and innovative solutions and flexible approaches, including when it comes to updating our legal framework and improving the business environment.
A system of preferential regimes has been successfully tested in the Far East and the Arctic. This includes advanced special economic zones, the free port of Vladivostok, the special administrative region on Russky Island, and a special tax regime on the Kuril Islands. These instruments have been used to attract trillions of rubles in investment and create 200,000 new jobs.
Taking into account the accumulated experience, we are launching a business support system unprecedented in scale and scope. Starting January 1, 2027, a single preferential regime will be applied throughout the Far East and the Arctic. Under it, support instruments will not be linked to a specific special region or advanced economic zone, but will be tailored specifically for different types of activities throughout the Far Eastern region.
In other words, there will be a menu of privileges available for investment projects in any part of the Far East and the Arctic, including the full list of available mechanisms, such as reduced social security contributions, tax and customs benefits, assistance with connecting projects to infrastructure facilities, the construction of industrial facilities, and so on. At the same time, existing benefits will be preserved for the current residents of advanced special economic zones and the free port of Vladivostok.
I want to draw the Government’s attention to the following: both existing and new federal, regional and industry-specific preferences must complement rather than contradict one another so that businesses that apply for concessions do not have to face the risks of double taxation or extra charges. Please calibrate the legal framework respectively.
It is important to continue creating comfortable and predictable conditions for investors with due consideration for businesses’ demands and the needs of the regions, and based on Russia’s national interests. In this respect, I’d like to give a green light to the new convocation of the State Duma that will be elected quite soon, in September. I expect that deputies will show active interest and engage in constructive legislative work to improve the business climate.
I want to stress one more important aspect. As I’ve said, the conditions we are building for business development in the Far East and the Russian Arctic are unique – and not only for our country but in comparison with many neighbouring states of the Asia-Pacific region whose example we followed when we started this project in the Far East. However, the tax and customs concessions and the infrastructure support are not everything that the state can and should do to stimulate business activity.
It is also important to consistently remove bureaucratic barriers for businesses and relieve the administrative burden. It is harmful and even pointless to introduce tax concessions while clamping down on businesses with additional audits, excessive control and oversight – the key word here is “excessive”. That would reduce the overall effect for economic development and for the business climate to almost zero.
I believe our colleagues from competent ministries and agencies will hear this message and will respectively continue to improve their work by more actively using a risk-oriented approach, digital solutions, artificial intelligence, the internet of things, and other innovative technology for oversight activities. The legislative framework for this exists.
Now let us take a closer look at some key areas and projects for economic development in the Far East and the Arctic. For industrial growth and shaping high technology industries of the future, we need to solidify the very foundation, the resource base. Thus, expanding geological exploration in the east and the north of Russia, commissioning into service new mineral resources centres are already paying off. The country’s largest copper deposit, Udokan in the Trans-Baikal Territory, is being developed, as is the largest coking coal deposit, Elga in Yakutia. A large zinc and lead production facility – the Ozerny Mining and Processing Plant – is operating in Buryatia, alongside a number of world-class complexes for the extraction of iron, copper, and gold ores.
We will continue to develop mineral extraction in the east and north of the country, including oil, gas, coal, gold, and rare earth metals – using, of course, clean technologies, as is already being done at many of our enterprises.
I would like to emphasise that extracted resources must be increasingly processed locally, right here in the Far East and the Arctic. This applies to metallurgy, gas and petrochemical facilities, fertiliser production, and so on. It is vital to form value added chains here to create new jobs and to increase the revenues of regional and municipal budgets.
We also need to increase the capacity of high-tech industries, and this is a key focus. I am referring to shipbuilding and aircraft manufacturing, as I have already mentioned, as well as robotics, electronics, mechanical engineering, and the space industry, which is steadily advancing here – we have built the Vostochny Cosmodrome, and we need skilled personnel, whom we will train locally. Pharmaceuticals also fall into this category. Such traditionally important regional sectors as forestry, agriculture, marine resource harvesting, and aquaculture should also be given renewed impetus for growth.
For investors in such projects, and for those opening new enterprises in the Far East and the Arctic, it is important to ensure reliable sales channels for their products. To this end, offset contracts should be utilised – a new instrument developed with the support of VEB. The principle is that businesses investing in new production facilities are guaranteed long-term demand for their products from the state, regions, and municipalities. My colleagues and I discussed this yesterday at the customary pre-forum meeting.
Both the construction of new facilities and the modernisation of existing ones must comply with high environmental standards and rely on the most advanced technologies. The Russian Far East and our Arctic should be a space for bold engineering ideas, where the time from conception to practical implementation is kept to a minimum.
We are on Russky Island right now. The Innovative Science and Technology Centre here is part of a network of similar facilities in the country. It specialises in applied solutions for IT, biotechnology, biomedicine and other areas of expertise.
It is important to create conditions for attracting both Russian specialists and foreign scientists and engineers from friendly countries to these science centres and universities in the Far East, which includes providing accommodation, relocation packages, and assistance for their family members. I would like to ask the Government to consider a specific programme that would cover these needs.
Starting January 1, 2027, a special legal regime will be launched in the Far East to promote the use of modern technology in the economy, social affairs, and public administration. The regime will provide for speedy and barrier-free testing of the latest technology such as UAVs in agriculture, industrial robots, telemedicine or artificial intelligence for medical diagnostics.
I would like to draw our colleagues’ attention to the following: it is important to make sure that testing technology and applying it to real life would be as convenient as possible, without unnecessary runarounds or numerous approvals. And of course, feedback from innovative companies is important: what obstacles do they see that prevent the implementation of new technology? What regulatory changes are necessary?
Colleagues, what I said is important. There are many problems. Take drone operation, for example – I am not talking about military application, but their use in the economy. Regulation is complicated. It would be easier to master this technology on this vast territory. The Far East should become a region for testing this sort of new solutions.
I would like to add that a new federal law will take effect on October 1. The law will allow – for now as an experiment – to use extensively procurement platforms at the regional and local levels. This concerns not only the Far East and the Arctic but all other constituent entities. Local education institutions – kindergartens, schools and colleges – will be able to purchase goods directly from Russian marketplaces.
Our Russian colleagues here know the specifics of our regulatory base. Even purchasing pencils for schools is regulated, correct? On one hand, all these legislative norms are supposed to ensure transparency, eliminate corruption, and so on. But you all know, dear friends, that this is often connected with certain difficulties and limitations. We want to try a micro-reform that would allow many of our institutions to purchase what they need directly, without unnecessary delays. If they do it through marketplaces, it will, of course, minimise all sorts of risks associated with possible microcorruption, even microcorruption. I hope this project works out and we can extend it to the rest of the country.
This approach is intended for expediting procurement and making purchases cheaper and more convenient logistically. Furthermore, it would simplify the relationship between customers and vendors, removing unnecessary intermediaries.
Next. The key factor in technological, territorial, and industrial growth is the supply of electricity. Colleagues from the Government and the regions have already carried out a great deal of complex work, taking into account numerous factors, aligning industry plans, and preparing a comprehensive programme for the development of the energy sector in the Far East up to 2050.
Its objective is to increase energy capacity through environmentally friendly generation and to accelerate the connection to public gas grids in the Far Eastern regions. Separate, effective solutions have been devised for energy supply to remote areas. New generation facilities should appear in the Arctic zone, including small nuclear power plants, which have no equivalents anywhere in the world.
By the way, nuclear energy plays an important role in the development of the digital, platform economy, including artificial intelligence tools, as well as data storage and processing centres. We have plans to locate such centres in the Arctic and the Far East, and these are already being implemented; we will only intensify work in this direction. The key considerations here are security and high-speed data transmission. To this end, we are developing a quantum communications network, with Russian Railways as the parent company. They began this work some time ago and are making good progress.
Today, the length of the backbone quantum network in Russia already exceeds 7,800 kilometres. It connects 27 cities and regions, including 13 cities with populations of over one million. Let me stress: by 2030, quantum communications must reach the Far East, all its regional capitals, thereby bringing them into the high-speed information and data exchange loop. I would like the Government and our colleagues at Russian Railways to take note.
Modern, reliable infrastructure is the foundation of a new spatial model for the Far East and the Arctic. It will strengthen ties between Russian companies, both among themselves and with partners in foreign markets across the Asia-Pacific region.
We will expand the capacity of logistics hubs and transport links. The carrying capacity of the BAM and Trans-Siberian railways is already increasing, and port facilities, warehouses, and cross-border infrastructure are being modernised.
A very important initiative dedicated to tying together of the logistical space of the Far Eastern and Arctic regions is the Comprehensive Plan for the Development of the Arctic and the Trans-Arctic Transport Corridor. It is previsioned to last until 2050 and it outlines projects, domains, and avenues that need to be addressed. I am asking the colleagues to speed up the elaboration of this Comprehensive Plan and to get to the implementation of this plan.
I’d like to specifically cover the development of the Trans-Arctic Transport Corridor that runs from St Petersburg and Murmansk through the Northern Sea Route to Vladivostok and further to the countries in the Asia-Pacific Region. With the situation in the world as challenging as it is, when there are apparent risks for global maritime navigation and trade, the corridor is intended to ensure the flexibility and security of international supplies, opening new opportunities for transit and coastal shipping, and for continuous northern supplies to the Arctic regions.
Our goal is to make sure that the navigation on the route can continue all year round. To achieve this purpose, we are building icebreakers and ice-class vessels, service and rescue fleets. We are also expanding the satellite group and reinforcing ports, including Dikson, Pevek, Tiksi, Arkhangelsk and Sabetta. Work is underway across all these areas. In the same context, I want to mention a significant event that is coming soon. A main oil pipeline with connection to the new Bukhta Sever terminal will be launched soon at one of our largest Arctic projects, Vostok Oil in the Krasnoyarsk Territory. The first batch of oil will also be shipped via our polar maritime routes.
We also plan to integrate Arctic sea terminals with railways and inland waterways, to gradually connect cargo traffic from Central Russia, the Urals and Siberia. Of course, we want to deliver imported goods as well. Only recently, the first container carrier passed through the Russian Arctic from China to Murmansk. With our partners we plan to continue this work shortly.
Our general expectation is that by the end of this decade, the cargo traffic along the Trans-Arctic Corridor will amount to at least 70 million tonnes per year, or double the current level.
Clearly, major infrastructure and logistics projects require large investment. That means we need effective mechanisms to support private investment, including from our foreign investors and sovereign funds. The Russian Direct Investment Fund has successful experience in working with such partners.
To expand the participation of international capital in our Far Eastern and Arctic projects, we need to tap into the potential of the Eastern Stock Exchange. As I have said, we plan to build a modern financial centre on its basis. I would like to ask the Government and the Bank of Russia to work out the details.
The national public-private partnership standard will also be helpful in the implementation of infrastructure projects. It was developed with support from VEB.RF and took effect on September 1. The standard’s objective is to distribute the risks more efficiently and increase the return on infrastructure investment.
Moreover, to attract long-term money for public-private partnership projects, we have developed a long-term financing model, primarily by issuing concessional bonds. I’d like to ask my colleagues to monitor the performance of this model and calibrate it if necessary.
Today, I would like to talk about the transport of the future, which is particularly important for the Arctic and the Far East. I am referring to autonomous unmanned systems for transportation by land, sea and air, including in remote and hard-to-reach areas.
The low altitudes are becoming a very busy transport artery rivalling both railways and waterways. And we already need to create standards for autonomous shipments of civilian cargo using drones.
Approaches to developing what is essentially a low-altitude logistics system for the economy will be worked out as part of a dedicated project involving the Ministry of Transport, the Russian company GLONASS, and our Chinese partners. As I understand it, this joint initiative was launched today on the sidelines of the forum.
Of course, at the same time, we must harmonise regulations governing the operation of autonomous unmanned systems and develop new cross-border routes with countries in the Asia-Pacific region, BRICS, and the Eurasian Economic Union. We are open to cooperation with all our partners in this area.
Colleagues,
The Far East and the Arctic are undergoing dynamic change, not only in terms of economic growth, logistics, and technological development. Our most important task is to ensure a high quality of life for people in major industrial centres and regional capitals, as well as in small towns and rural communities. We must consistently develop modern infrastructure, build new roads, schools, hospitals, cultural and sports facilities, and improve parks and waterfront areas. Together, these efforts create an integrated environment for family life and recreation, for the development of children and young people, and for people of all generations to fulfil their potential.
Master plans have been developed for 22 cities and urban agglomerations in the Far East, while another 15 such strategic documents have been prepared for key communities in the Arctic. These plans establish a comprehensive vision for the development of cities and territories, shaping their social and economic landscape and determining what new jobs will be created.
The master plans were drawn up with input from local residents and the involvement of economists, architects, urban planners, demographers, and other experts. This is a complex but absolutely sound and necessary approach. Only by bringing together the expertise and efforts of specialists from different fields and responding to the needs of local communities can we effectively develop networks of clinics and hospitals, schools and kindergartens, modernise public transport and housing and utility infrastructure, support small and medium-sized businesses, and address environmental challenges.
More than 400 projects under the Far Eastern and Arctic master plans are currently at the design and construction stages, while around 300 have already been completed. These include new airports in Magadan, Blagoveshchensk, and Petropavlovsk-Kamchatsky; 15 outpatient clinics and hospitals, including facilities in Vladivostok and Neryungri; more than 90 schools and kindergartens; and new, welcoming parks and recreational areas, such as the embankment in Komsomolsk-on-Amur, Mayak Park in Magadan, and Bagulnik Park in Tynda.
I would also like to note that the master plans have made possible the opening of a modern oncology centre in Yakutsk and a state-of-the-art nuclear medicine centre in Ulan-Ude. Residents of these cities and regions can now receive high-quality specialised medical care and undergo examinations close to home – services that were previously unavailable locally and required them to travel to Moscow, St Petersburg, Novosibirsk, or other major cities.
It is encouraging that, according to surveys, more than half of the residents of the cities and urban agglomerations where master plans are being implemented have noted positive changes – in other words, they have a favourable view of the work being carried out. There should always be this kind of feedback, and I want to draw the attention of my colleagues in the regions, the Government of the Russian Federation and municipalities to this. It is people’s assessments that should be taken into account when calculating the quality-of-life index and assessing how successfully cities and settlements as a whole are being planned and developed.
By 2030, at least 200 master plans are to be drawn up across the Russian Federation, and, of course, their implementation requires a solid legal foundation.
I said 200 plans. Is that a lot or a little? We will gradually scale things up. At present, there are 22 plus 15; there will be 200, and then we will keep moving forward. What has been accomplished so far shows that we are on the right track and are achieving the goals we have set ourselves. We will continue working in this way.
The draft law on master planning, which is eagerly awaited by the regions, businesses and experts alike, is, as they say, on the home stretch. I expect it to be adopted by both chambers of the Federal Assembly by the end of this year.
At the same time, we need to develop special solutions for small towns, settlements and villages where there are no master plans. Here, we can make use of digital tools and software, including solutions based on artificial intelligence.
Returning to the master plans for the Far East and the Arctic, I would like to stress that we will certainly continue implementing them. At the same time, I suggest that we consider additional sources of funding for these plans.
Over the next four years, the regions of the Far East and the Arctic will have to repay 53 billion rubles to the federal budget. This concerns the repayment of infrastructure treasury loans. A decision has already been taken nationwide to reinvest such loans as they are repaid. I ask the Government to consider an option whereby the Far East and the Arctic could direct these funds towards infrastructure projects included in their respective master plans – in other words, invest them in the development of cities and territories and in improving people’s quality of life precisely here, in the Far East and the Arctic.
In addition, master plans need to draw on the resources of development institutions, including bond financing raised by DOM.RF project-finance companies. This is also important for stimulating housing construction. Over the past six years, incidentally, housing completions in the Far East and the Arctic have roughly doubled. Last year, they reached 5.3 million square metres.
Special mortgage programmes with an interest rate of 2 per cent have, of course, helped here. Today, one in two new-build flats in the region is purchased with this subsidised mortgage – one in two. This is undoubtedly a measure that is stimulating housing construction in the region. Overall, 220,000 families have already improved their housing conditions with its help.
Resolving the housing issue plays an important role in demographics. Additional measures to support the birth rate are in place in the Far Eastern Federal District. These include a one-off payment for the first child equivalent to two subsistence minimums, as well as regional maternity capital when a second child is born. This amounts to 30 percent of the federal maternity capital. This is good support, and I would like to thank my colleagues in the regions for this. In addition, when a third child is born, most Far Eastern regions add another 550,000 rubles to the federal payment of 450,000 rubles. This brings the total to one million rubles, which can be used to repay a mortgage. And I should say that it works.
I propose extending the enhanced payment for the birth of a third child in the Far Eastern regions until 2030.
What else would I like to highlight? Thanks to the master plans, the so-called creative industries are developing in cities in the Far East and the Arctic, including animation, film-making, jewellery and traditional crafts. Unique products drawing on local character and regional traditions are being created, and they are in demand, including among our foreign friends.
For example, Yakutsk has a creative cluster called Kvartal Truda. Similar facilities are being built in Ulan-Ude, Blagoveshchensk and Vladivostok. The Amur Technopark has been launched in Khabarovsk. The concept for an Anadyr creative cluster is also under discussion. Some of my colleagues told me about similar plans yesterday. These are genuine centres of attraction for small but highly promising businesses. And we will help creative industries in the Far East and the Arctic to scale up their initiatives. To this end, we will create a comprehensive support ecosystem, including production facilities, financial instruments, channels for cooperation with foreign partners and platforms for intercultural dialogue, such as the Soul of Russia project.
And there is another attractive sector based on local identity and uniqueness – tourism, of course. One in every ten projects currently being implemented with state support in the Far East and the Arctic is in the tourism sector. More than 400 agreements have already been signed for the construction of ski resorts, hotels, holiday centres and glamping sites. Year-round resorts are being developed, such as the Baikalskaya Gavan resort in Buryatia and a seaside resort in Primorye. The Three Volcanoes tourism park is being built in Kamchatka. The first year-round ski resort in the Far East will soon open in Arsenyev.
I am convinced that thanks to this systemic approach that we are implementing right now, the nature of the Far East and the Arctic, the seas, the natural reserves, and national parks will be more accessible for an increasing number of tourists, both from Russia and other countries. There is certainly much to see here. In that regard, I would like to say that this is a unique region with a unique type of nature.
In this context, protecting public health, ensuring environmental wellbeing, and preserving nature are of particular importance and remain among our key priorities. As I have already noted, we will ensure compliance with stringent environmental requirements and standards in the construction of infrastructure and industrial facilities and in the development of new deposits. We also intend to further reduce harmful emissions in the industrial centres of the Far East. The Arctic “clean-up” will continue, with old equipment and other debris accumulated over decades being removed and areas affected by accumulated industrial waste and landfills being cleared.
We will pay particular attention to protecting sensitive ecosystems such as Lake Baikal and our great Far Eastern rivers, the Amur and the Lena, as well as to preserving the Amur tiger, the Far Eastern leopard, and other rare species as part of the unique natural heritage of the region and the country as a whole.
I was here recently, and thanks to the Governor, who arranged for me to spend a couple of days here, I had an unforgettable experience that I cannot help but share. We were driving through the forest when a tiger emerged, walked right in front of our car, wagging its tail, and showed no intention of moving aside. He was clearly the master of the taiga. It was fascinating to see first-hand the natural riches of this region.
Friends,
The ambitious strategic plans we are implementing in the Russian Far East and the Arctic are, of course, supported by strong business activity and genuine interest among companies, including foreign businesses, in the enormous opportunities offered by our Far Eastern and northern regions.
The Eastern Economic Forum itself is clear evidence of this interest and of the business community’s willingness to launch investment projects and pursue promising and commercially viable initiatives. Last year alone, more than 300 agreements across various sectors, with a total value exceeding 6 trillion rubles, were signed on the sidelines of the forum.
I am confident that this year’s forum will contribute to the sustainable, long-term development of the Russian Far East and the Arctic, improve people’s quality of life, and strengthen international cooperation and mutual trust.
I wish all participants and guests of the forum every success and all the best.
Thank you for your attention.
Kirill Tokarev: Mr President, while the next speaker is preparing to deliver his address, I would like to ask you several follow-up questions.
Vladimir Putin: You are welcome.
Kirill Tokarev: Support measures for the Far East have proved effective, as you have exhaustively said. I can’t argue with that. The region’s development strategy is clear as well. But the problem is, as usual, in resources. They are a complicated matter, we are living in challenging times, and the budget situation is not simple either. The federal budget deficit has closely approached 7 trillion rubles (our colleagues in the room can correct me if I’m wrong) and can rise above 3.8 percent of the federal budget by the end of the year, if memory serves. Some experts, including those who attended our shows, say that the deficit can exceed 10 trillion rubles. The role of federal funds in the region’s development is extremely important. Do we have the necessary resources to maintain the level of investment in the region?
Vladimir Putin: What matters most is not state investments or state resources but private investments. The task of the state is to create conditions for such investments. The volume of investments has recently gone down for a number of reasons, including and primarily because of the deliberate policy of the regulator – the Central Bank – and the Government of Russia. The goal is to suppress inflation. We could not allow it to soar; there was such a danger. Today, our year-on-year inflation is 6.3 percent. We are working towards our goal.
See also
It is important not to overcool the economy, as we all know. We knew this since the start of our efforts, and we acted accordingly. Opinions on this matter differ. Some say that it is time to start a new cycle, to give our economic policy more momentum, and so on. You can talk about this with experts forever, but our main task is to create conditions for private investments.
As for [budget] deficit and surplus, it is cyclical. We used to have a surplus budget, and we nevertheless talked about creating conditions for private investments. We have a budget deficit now. However, I am confident that we will gradually solve these problems, primarily by maintaining a healthy macroeconomy.
Kirill Tokarev: Do I understand correctly that the current level of the federal budget deficit is quite comfortable for the Russian economy? And the issue only concerns cutting certain support measures… We are not only talking about the Far East but about supporting small and medium-sized businesses in infrastructure construction. For example, building a bridge between the mainland and Sakhalin Island is a perennial issue. I understand that the region needs it and it will be built someday. But is the time right for this now? Maybe we should start saving more funds?
Vladimir Putin: This is not so much about skimping; it is about spending wisely and choosing priorities.
You have mentioned the budget deficit. Yes, there is a deficit but it is not critical. Three is nothing critical about it, considering that we have one of the lowest government debts in the world. We are trying to act carefully, without straining the financial system, especially private banks, with state borrowing, because this would leave less funds for businesses. This requires a delicate policy, which we are trying to pursue.
Overall, I believe that the Government and the Central Bank are so far managing to steer between Scylla and Charybdis, which will produce the desired effect about which we talked when we launched this process a year and a half or two years ago.
Kirill Tokarev: We will certainly return to the conversation about private investment and investment sources in general. We will talk about the re-launch of the investment cycle that you announced.
And now I would like to give the floor to our guests and welcome President of the Republic of Indonesia Prabowo Subianto who will give his remarks.
President Subianto, the floor is yours.
President of the Republic of Indonesia Prabowo Subianto: Your Excellency President Vladimir Putin, President of the Russian Federation,
Excellencies Heads of State and Government,
His Excellency the Prime Minister of Mongolia, Mr Nyam-Osoryn Uchral,
His Excellency the First Vice President of the Republic of the Union of Myanmar, Mr Nyo Saw,
His Excellency the Vice Premier of the State Council of the People’s Republic of China, Mr Ding Xuexiang,
Ladies and gentlemen,
First, I would like to thank President Putin, the Government of the Russian Federation, and the Roscongress Foundation for the honour of inviting me to be present and to address this forum.
Mr President, it feels like only yesterday that in June last year you invited me to speak at the St Petersburg International Economic Forum, SPIEF. Then I called SPIEF the meeting heart of the world’s emerging multipolar economy. Here in Vladivostok, we stand at the Pacific gateway.
I became President of Indonesia – a country of 290 million people – almost two years ago. However, this is already my second visit to Russia this year. But in fact, this is the fifth time since I became President of Indonesia that I am meeting President Putin. I look forward to returning the hospitality granted to me by Russia and to welcoming President Putin and many of you in Indonesia.
Today, I will explain to you, distinguished delegates to the 11th Eastern Economic Forum, why Indonesia – situated between the Indian and Pacific Oceans – is trying to build a stronger bridge to the Russian Far East and to the Eurasian Economic Union.
The Russian Far East and Indonesia are both very vast – it takes many hours to fly from one end of our territories to the other. We know that the capital city can sometimes feel very far from the frontier communities. But Vladivostok also feels rather close to my home. The same great ocean, the Pacific Ocean, touches the shores of Russia and also touches the shores of Indonesia. The Pacific Ocean does not separate us. The Pacific Ocean connects us. It is not a wall between us. It must be a highway between our two economies.
Excellencies,
the theme of this forum is The Far East: Development for the Benefit of the People. I must tell you that this is not only the theme of the Russian Far East – it is also the mandate given to me by the people of Indonesia.
Last year in St Petersburg, I explained Indonesia’s economic philosophy as realism, pragmatism and the pursuit of the greatest good for the greatest many.
We believe in enterprise, initiative, creativity, and innovation, but we also believe that government must protect the weak, must manage national resources well, must fight corruption, and must invest in the long-term needs of the people and the nation. That is what development for the benefit of people means to Indonesia: the greatest good for the greatest many.
Development cannot only benefit the few. Development must be measured at the dinner table of ordinary families – whether children receive nutritious food; whether farmers can obtain fertiliser and sell their produce at fair prices; whether families can live in decent homes; whether young people can find productive work; and whether electricity can reach every home in every village.
This is why Indonesia is providing free nutritious meals for all our children and for their pregnant mothers. This is why we are pursuing food self-sufficiency and energy security. This is why we are accelerating downstream industrialisation so that our natural resources can create industrial skills and good jobs at home. This is why we seek faster economic growth – not growth just for growth’s sake, but growth that can lift millions of people out of poverty into dignity.
This forum is essentially asking the same fundamental question as the one asked of me by my people: how can the great wealth of a region translate into a better life for the people who live there? The economies of Indonesia and Russia are not mirror images. I believe that is precisely why they can fit together to work.
Russia has wheat, fertiliser, energy, science, and advanced engineering. Indonesia has palm oil, fisheries, coffee, rubber, textiles, furniture, consumer goods, a young workforce, and a gateway to the 680 million people of ASEAN. One side’s strengths can answer the other side’s needs. This is the foundation of fair and durable trade.
The results are already visible: last year, in 2025, our bilateral trade approached $5 billion – an increase of 21.7 percent compared to 2024, and an increase of 33.7 percent compared to 2023. This achievement is just the beginning; it is not a ceiling.
Here in this forum, I propose that Indonesia and Russia set a clear challenge to ourselves – to double our trade within the first review period of the Indonesia-Eurasian Economic Union Free Trade Agreement. This rise will be driven by complementary economies, the expected entry into force of the Indonesia-EAEU Free Trade Agreement in early 2027, and, perhaps most importantly, closer ties between our business communities.
For Eurasian businesses, Indonesia is a natural entry point to ASEAN. We are the region’s largest market and a hub of the Regional Comprehensive Economic Partnership (RCEP) and now a free trade partner. Southeast Asia was not always peaceful – our region experienced conflicts, tensions, and deep differences. But then our leaders recognised that poverty, limited healthcare and education, inadequate infrastructure, and the need to create opportunity were challenges larger than any one of us. So ASEAN chose consultation over confrontation; cooperation over division.
For almost six decades, that choice has created a peace dividend: farmers can produce; factories can operate; ships can sail; businesses can invest; children can go to school; families can plan for the future. Indonesia now invites Russia and every EAEU member to help extend that peace dividend by connecting Eurasia more closely with Southeast Asia.
The Indonesia-EAEU Free Trade Agreement was signed in St Petersburg on 21 December 2025 by Indonesia; the Union; its five member states (Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia); and the Eurasian Economic Commission. It commits my country and the EAEU to eliminate or reduce duties on 11,882 tariff lines – more than 90 percent of all goods being traded.
Indonesia completed parliamentary approval of this FTA, and last July I signed the presidential regulation of ratification. Let me state our intention plainly: Indonesia wants this agreement in force and in use as soon as the exchange of notifications allows. I respectfully call on every EAEU member state to complete its internal procedures so that we can make use of this agreement as soon as possible.
This agreement is South-South trade architecture. It opens five markets to Indonesian producers and gives Eurasian producers access to more than 290 million Indonesian consumers.
Indonesian business delegations are here today to conclude pilot shipments, name buyers, secure logistics, and settle compliance and payment arrangements that make use of this FTA. It is my intent that when the tariff schedule opens, the goods, routes, and contracts must already be in place. This forum must become the marketplace of the agreement.
Excellencies, Russian and Indonesian business delegations are moving intensively in many directions. Each visit produces introductions, leads, trust, transactions, and relationships.
Since St Petersburg last year, the circle of trust has grown. The task before us is to turn personal trust into institutional trust: clear rules, reliable payments, predictable logistics, and agreements that survive changes of officials.
I believe in this forum we can establish competitive direct shipping between Vladivostok and Indonesia with predictable schedules, cost, insurance, and cargo in both directions.
And let us be equally practical about people. Direct flights would bring Russian visitors to Indonesia and Indonesian visitors to the beauty of the Russian Far East. Ships move goods – aircraft move friendship.
Excellencies,
Our future cooperation can be much larger than trade in goods. In energy, Indonesia welcomes Russian cooperation that raises the productivity of oil and gas exploration, production, and processing. We seek knowledge and investment in renewable energy, smart grids, and peaceful nuclear power, including modular and full-scale technologies under the highest safety standards and international safeguards.
In food security, we see opportunities in working with Russia on agricultural technology, superior seeds and livestock breeding, farm mechanisation, food processing, and the joint production of fertiliser. In industrialisation, we could find value together.
Indonesia welcomes partnerships in downstream processing and in the goods our citizens use every day – food, household products, clothing, furniture, pharmaceuticals, and consumer electronics. We also welcome Russia-Indonesia cooperation in space, higher education, and transport.
So I say directly to Russian businesses: come to Indonesia, work with us, produce with us, let us build a new system together, let us create value together, and from Indonesia let us reach the wider markets of ASEAN and the Indo-Pacific together.
Indonesia has established Danantara – Indonesia’s sovereign wealth fund with $1 trillion of assets under management. Danantara could act as a bridge where Russian and Indonesian capital markets and strategic goals could meet. Danantara and the sovereign wealth fund of Russia, the Russian Direct Investment Fund (RDIF), can move from identifying possibilities to financing bankable projects. Every agreement announced must pass value, financing, and delivery milestones.
Distinguished participants,
we meet at a difficult moment. Today, trade is many times used as a weapon. Supply chains are redrawn by suspicion. Finance is divided by geography. Precisely because the world is fragmenting, every bridge built here – in food, energy, science, logistics, and trade – is a practical answer. In global finance, resilience requires more than one functioning system. We should not rely on a single financial architecture, because if one system is disrupted, another must remain able to facilitate the flow of funds that keeps trade moving. Without reliable payment and settlement channels, trade itself can be paralysed. This is not about replacing one system with another, but about ensuring that another global financial system can operate alongside existing arrangements to preserve continuity, stability, and confidence in international trade.
Indonesia’s foreign policy is free and active. We determine our own national interests and we want to contribute actively to peace. At SPIEF last year I said to you: Indonesia does not want to join any military alliance, but we seek to join economic alliances. Our FTA with the EAEU is exactly that – not an alliance against anyone, but a partnership for the prosperity of everyone.
Indonesia works to the east, west, north, and south as a sovereign and equal partner. For us, a thousand friends are too few – one enemy is too many.
We come to St Petersburg to make friends, and now we come to Vladivostok to turn friendship into pragmatic results.
The Global South is not a new bloc – it is a constituency for fairness, for a fair share of prosperity, and for a fair voice in writing global rules. Our position is clear and consistent: Indonesia stands ready to support every sincere effort towards a just and lasting peace wherever conflict proceeds. Indonesia and Russia have been friends for many decades. Indonesia remembers the support of the then Soviet Union during the early years of our young republic. We remember that history and we never forget our friends.
But friendship cannot live only in history. Our generation must have the courage to write a new chapter. Let us be equal, let us be independent, let us work together mutually for the benefit of both our countries. And let us be measured by what our efforts can deliver for our peoples.
Peace is not separate from development. Hunger, unemployment, injustice, and humiliation are the raw materials of conflict. The Far East that provides opportunity, countries that feed their children, and an Asia-Pacific that trades openly – these are real and durable contributions to peace. Sovereignty makes peace possible. Peace makes development possible. And development for the benefit of people makes peace endure. That is why the theme of this forum is not merely an economic slogan. It is actually a doctrine of security.
Participants, distinguished Excellencies,
I understand that the Russian people have a saying: Odin v polye ne voin – one man cannot fight alone. There can be no victory if you fight alone. In Indonesia we have the same saying. We say: gotong royong – any heavy burden becomes light when we carry it together. We have different languages, but we have the same ancient wisdom from our forefathers. Everything we have discussed today – the tariff lines covered by the FTA, transport corridors, payment systems, industrial projects – exists for one reason: so that a fisherman in Indonesia and a shipbuilder in Russia can each look at their children and believe that tomorrow will be better than today.
Our young people will not ask which bloc we belong to. They will ask what we built for their future. Let us build the direct shipping route. Let us open the direct flights. Let us make our FTA work from its very first day. Let us double our trade. Let us produce food, fertiliser, energy, medicine, and technology together. Let our sovereign wealth funds – Danantara and RDIF – finance strategic projects together. And let us ensure that every agreement announced in Vladivostok produces a result that our people can see and can feel. Let it be said of this forum that in a season when some others were building walls, we built bridges.
And let it be said of our generation that in difficult times, we chose cooperation – development for the benefit of our peoples. We chose the greatest good for the greatest many. And by doing so, we helped to build lasting peace and prosperity.
Thank you. Terima kasih. Spasibo bolshoye. May peace be upon us all. Thank you.
Kirill Tokarev: President Subianto, first of all, thank you for such a poetic and colourful speech, for your knowledge of Russian folklore, proverbs and sayings. Building bridges is truly important. I apologise but I have some specific questions, and your remarks were also quite specific, with some very particular proposals, for which we are very grateful.
The free-trade agreement with the EAEU that you signed last December, if my memory serves me right, was designed, as far as I know, to double free trade between Russia and Indonesia under the growing pressure from Washington – which is no secret to anybody present here. Hence my question: how do you search and find balance, on one hand, between your obligations to your Western partners and, on the other hand, deepening cooperation with Russia, Eurasia, and so on? And what level of integration with Russia do you hope to achieve? You mentioned transactions and said that trade must not be weaponised; that you should not rely on any single financial system and that you plan to adopt national-currency payments and change your approach to payments in general. Anything else?
Prabowo Subianto: Thank you.
Indonesia has been very open for many, many decades. We are open, and our policy – we always say – is that we want to have the best relations with all countries, with all great powers. We are, by tradition, non-aligned – as I said, we don’t belong to any military alliances. We respect all powers. Economically, we are also independent, and we want to work with all our friends, with all countries. This is very open – from day one of all our negotiations with all our partners, they know this. And we are offering fair trade, so we don’t see any real problems for us.
But as I said, since we are very open, everybody knows – all sides know – that we will not work with one group against the interests of other groups. We will treat everyone who wants to come to Indonesia fairly. We will give the same treatment to all peoples who come to Indonesia. And we negotiate – we do not want to threaten anybody. So that’s our position.
And as I said, our relationship with Russia is very long – a long relationship, you know. And we are very open. We said that when we were weak, when we were a young republic, nobody really thought much about us. At that time, it was the Soviet Union, and they helped Indonesia when we were very weak. So, everybody knows this history, and we are not shy of this history.
Thank you.
Kirill Tokarev: Thank you very much.
Vladimir Putin: Before entering this hall, I and my colleagues were sitting in a lounge where we exchanged opinions on what we were going to say. I spoke more about the Far East. You know what I noticed? Yes, there are giants like China and India with 1.5 billion people and 1.3 billion. But I want to point out that Indonesia is not only the largest country with the largest Islamic population but it is also among the largest countries in the world with almost 300 million people. You see? Those who try to impose their policy on any part of the world, they can never ignore that.
Kirill Tokarev: Mr President, if I may, I’d like to ask you some questions regarding demographic issues – of the Far East, of course, but we can extend it to the rest of the country since the Far East is its integral part.
As a Russian macroregion, The Far East is among the leaders for the scope of investment. New housing is under construction; cities are growing as is the quality of life. The list goes on, and you gave us plenty of details. The birth rate is above the national average if I’m not mistaken. However, the region’s population remains stagnant and, according to some statistics, is actually in decline. I don’t know if these statistics are trustworthy but that’s what they say.
Why aren’t the economic growth, growing investment and other positive factors translating into demographic growth and what can we do about it?
Thank you.
Vladimir Putin: You have said that population growth here is higher than the national average, which means that they are. This is the first point.
Second, the situation is the same across the entire post-industrial world. Of course, we are not satisfied with the current birth rate. But the situation in the region we are in now is not the worst at all. You know that South Korea’s birth rate is 0.7, less than half of ours, and it is approximately the same fertility rate in Japan.
This does not mean that we should take this as a benchmark. We should take the best figures as a benchmark, and we striving for it. As I said – and you have confirmed it – it is an objective fact that the fertility rate here is higher, if only a little, and we must ensure that the national average is at least as high as in the Far East, while the birth rate in the Far East goes even further. We are implementing a childhood and family support programme towards this goal. I will not enumerate all the relevant support measures; I have mentioned some of them, and there are more of them here than across the country in general, as I have said. Direct family support is one of the components.
Another element is the creation of conditions for developing the economy and improving the standards of living. Another issue, which has also been mentioned here, provides for strengthening the social sphere as one of the three development components in the Far East. Master plans have been prepared for 22 Far Eastern and 15 Arctic core towns, and there will be 200 towns in total. We will focus on this to create comfortable living conditions. I hope that this, along with healthcare, education and a good pay, will produce the effect we are seeking.
We turned the tide in the 2000s, we had notable growth in the fertility rate, which means that we have done this before and we are sure to do this again.
Kirill Tokarev: Mr President, I have a small but a more general question: birth rate data have not been available for journalists, economists, statisticians and other professionals since 2025. We know that the special military operation is underway, there are a great many challenges, and our enemies might use demographic information against us. But is the birth rate really a national security threat?
Vladimir Putin: Yes, it is, and that is how we regard it. The special military operation is affecting it, but there is more to it. There is no special military operation in Japan or South Korea, but the birth rate there is lower in in our country. Therefore, we should consider all factors, yet the military operation is not a major one. What matters most is what I have already mentioned – the creation of necessary conditions, especially relevant incentives for families and young women. Our women now consider it possible or appropriate to have their first children at around 29 years, the same as in Western Europe. They take some time raising their first child, and then they have no time left to give birth to a second child. Do you see? So, there is a great deal to do to change society’s attitude toward the number of children a family should have, the overall policy of the state, the information policy, and so on. It is a very big and complex block of questions. Actually, demography is something on the borderline between science and art. Therefore, we must work together to identify the key milestones and touchpoints.
We know very well that the birth rate is low in post-industrial societies and high in countries with a relatively poor population. So, what is the answer? Regrettably, there is no direct answer yet. But we must move forward rather than backward, and we will do everything we can to raise our rating. This is one of our main challenges. We will work on it, of course.
Kirill Tokarev: It looks like people in the Far East are leaning more towards art since they have higher population replacement rates.
Friends, let’s continue. I’d like to give the floor to Prime Minister of Mongolia Nyam-Osoryn Uchral.
Prime Minister of Mongolia Nyam-Osoryn Uchral (retranslated): President Vladimir Putin,
Heads of state and government,
Ladies and gentlemen,
First of all, please accept heartfelt greetings, wishes of prosperity and all the best from the Mongolian nation. I am glad to be taking part in the annual Eastern Economic Forum here in the Far East, a region that holds a special place in the Asia-Pacific as one of the new centres of global economic growth.
My sincere gratitude goes to you, Mr Putin, for inviting Mongolia to attend such an influential forum. This year’s gathering, under the meaningful tagline of The Far East: Development for the Benefit of the People, remarkably reflects the idea that the end goal of development is to benefit an individual, help them build a decent life and enjoy future opportunities.
For us, development goes beyond higher economic indicators. It is about improving the quality of life for every citizen, strengthening the younger generation’s faith in their future, and building mutual understanding and trust between countries.
This is why expanding cooperation in trade, investment, transport and logistics, energy, technology and human development, and strengthening economic ties in the region are the interests we all share.
Ladies and gentlemen,
The international relations and world economy today are going through harder challenges than ever before. Price fluctuations, supply chain disruptions, transport and logistics issues, payment system changes – all these factors pose new challenges for the long-term development of a state. At this time, we should refrain from highlighting our differences but instead find common ground and strengthen our ties on the basis of mutual trust and equality.
Mongolian people have long said: “Unity is power.” These words of wisdom are gaining more value today in the context of relations between states and nations. If we respect our agreements and value our common interests, our joint efforts will make a fitting contribution to peace and sustainable development of the region.
Mongolia consistently pursues a peaceful, open, independent and multi-faceted foreign policy. We believe that cooperation based on respect for countries’ sovereignty and independence constitutes an important condition for peace and steady progress in the region.
Boasting a unique geographical location, natural wealth and young talents, Mongolia is actively involved in regional economic integration. Our goal is to become an important regional hub for transport, logistics, energy, trade and investment.
Our country’s sustainable economic growth, along with the advancement of major strategic projects, will lay the foundation for increased productivity in exports, manufacturing, and services. The benefits of economic growth must be effectively translated into jobs, higher family incomes, greater opportunities for businesses, and an improved quality of life for our people.
Mongolia has made human development one of the key objectives of its long-term development policy. Through its action programme, the Government is implementing policies aimed at creating conditions for people to live healthy and fulfilling lives, receive a quality education, engage in decent work, and enjoy a safe and comfortable living environment.
Ladies and gentlemen,
Economic freedom is a solid foundation for human wellbeing, business development, and creative initiative. Without eliminating excessive red tape, duplicative regulations, unnecessary permits, and barriers to entrepreneurship, it is impossible to achieve genuine economic growth and competitiveness. Therefore, the Mongolian Government is implementing the national Liberate initiative and the Four Paths to Freedom policy, gradually removing barriers for entrepreneurs, investors, and producers, streamlining government intervention, and focusing on unlocking the creative potential of the private sector, increasing investment and productivity, and creating jobs.
The adoption and implementation of the economic freedom package of laws will open up new opportunities for the business environment, including stronger protection of investors’ interests, the creation of conditions for resolving disputes through international arbitration, expanded opportunities for attracting investment through the stock market, and a gradual reduction in restrictions on foreign investment in certain sectors. I believe this is clear evidence of Mongolia’s commitment to making its economy more open, competitive, and attractive to investment.
At the same time, we believe that the development of artificial intelligence, advanced technologies, innovation, and engineering skills among the younger generation is an essential component of human development policy. We have enormous opportunities to expand exchanges among young specialists, scientists, and researchers from the Far East and the Asia-Pacific region, and to jointly train the personnel needed for future development, including in green technologies, industry, transport and logistics, and agriculture.
Ladies and gentlemen,
Mongolia values and develops comprehensive strategic partnerships with its long-standing neighbours, Russia and China. The consistent expansion of mutually beneficial trilateral cooperation is a priority of Mongolia’s foreign policy. This includes promoting the Mongolia-Russia-China Economic Corridor project and improving cross-border trade and transport connectivity.
Enhancing infrastructure connectivity constitutes a significant step towards consolidating the region’s economic interdependence. The modernisation of the central railway corridor, the development of the road network linking the three countries, cross-border transport infrastructure, the expansion of capacity at border crossing points, and digitalisation of customs operations – all these measures create genuine opportunities for expanding trade, reducing transport times and costs, and making supply chains more reliable.
As the Mongolian proverb says: “On a long journey, one needs a companion.” In much the same way, the development trajectories of nations today increasingly demand cooperation, mutual trust and neighbourly relations. Every railway and motorway that unites us, and every energy or trade corridor, should serve not merely as conduits for the transit of goods, but as bridges fostering mutual trust, shared development and friendship between our peoples.
The project to deliver Russian natural gas to China via the territory of Mongolia heralds new strategic prospects for economic relations among the three countries and holds every prospect of becoming an undertaking that brings long-term reciprocal benefit in the of energy, transport and infrastructure, investment, and the training of skilled personnel. We intend to advance this and other major projects, guided by the principles of mutual benefit, economic efficiency and long-term sustainable development.
At the same time, expanding trade and economic cooperation between Mongolia and the Eurasian Economic Union and its member states is essential for opening new markets for Mongolian producers and exporters, diversifying their export range, and developing value-added production. We are confident that further enhancement of trilateral cooperation mechanisms, the implementation of economic development projects, and giving practical substance to cooperation in cross-border trade, transport logistics, energy, green development and innovation will make a tangible contribution to the sustainable development of the Eurasian region.
Ladies and gentlemen,
Common challenges such as climate change, desertification, land degradation, and food and water security recognise no state borders. Accordingly, I am convinced that the exchange of experience and expertise in environmentally friendly technologies, renewable energy, and the responsible and efficient utilisation of natural resources, as well as joint action at the regional level, constitute our shared responsibility.
Mongolia is implementing such nationwide initiatives as the Billion Trees, Food Revolution, and White Gold campaigns, while expanding international and regional cooperation to combat desertification and land degradation and to build a sustainable food system.
It is gratifying to note that just a few days ago, we successfully hosted the 17th session of the Conference of the Parties to the United Nations Convention to Combat Desertification (COP17). It is particularly important to us that the conference provided a platform for an open international discussion on how to reconcile economic growth with environmental sustainability, food security, and quality of life. This is fully in line with our vision of people-centred development.
President Vladimir Putin,
Ladies and gentlemen,
The 11th Eastern Economic Forum is becoming an important platform for opening up new opportunities for human wellbeing, sustainable development, and economic cooperation not only in the Far East, but also across the Asia-Pacific region and the vast Eurasian space.
I hope that every initiative and draft decision discussed here will bring tangible benefits to people’s lives, strengthen mutual trust among countries, and contribute to long-term and sustainable cooperation. Mongolia is always ready to make its contribution to such cooperation. Mongolians have a long-standing saying: “Neighbours think alike.” This wisdom reflects the value of the relations between the Mongolian and Russian peoples, who have lived side by side for centuries, cherishing the traditions of good-neighbourliness and mutual respect.
We must further strengthen this priceless legacy of trust, friendship, and mutual respect, and pass it on to future generations.
President Putin,
Let me once again express my sincere gratitude for inviting Mongolia to participate in the Eastern Economic Forum, as well as for the warm welcome and hospitality. I wish you and all the people of Russia health, happiness, prosperity, and all the very best. May the traditional friendship and good-neighbourly trust between the Mongolian and Russian peoples grow stronger from generation to generation, and may cooperation between our two countries continue to expand and bring prosperity to their citizens.
We wish you every success in the work of the 11th Eastern Economic Forum.
Thank you for your attention.
Kirill Tokarev: Mr Prime Minister, just one question – also concerning the future of relations between our two countries, a future which I am sure is bright. Let’s turn to specifics. On July 22, the interim trade agreement between Mongolia and the Eurasian Economic Union entered into force. Have you seen any early results from this step yet? It is clear that it has only been a short time, but still – what level of integration and further cooperation with both the EAEU and Russia are you hoping for in the coming years?
Thank you.
Nyam-Osoryn Uchral: I believe that the entry into force of the interim trade agreement between Mongolia and the EAEU will open up new opportunities for our trade and economic cooperation. It will allow us to take our relations to a new level.
At the same time, the effects of the agreement will not be immediate or large-scale in the short term, but will gradually become noticeable over time.
As for the initial results, positive changes are already observable to a certain extent – such as tariff reductions, greater flexibility in customs procedures, and lower trade costs. In particular, there is a trend towards expanding export opportunities for livestock products, wool and cashmere, as well as food products and certain light industry products.
At the same time, businesses will benefit from clearer and more predictable market access conditions, which should facilitate an increase in trade volumes. Looking ahead, deepening cooperation with the Eurasian Economic Union will, first, expand export opportunities by widening the accessible market; second, enhance connectivity in transport and logistics – including through traffic across Mongolian territory, which could strengthen Mongolia’s regional position; third, help ensure stable supplies of energy resources, fuel, and certain industrial raw materials; and fourth, create greater opportunities for investment and joint projects in the processing industry, agriculture, and infrastructure.
It could be said that the interim trade agreement for Mongolia is not so much a source of drastic or significant change in the short term, but rather a fundamental condition for expanding economic cooperation in the medium to long term.
In our view, therefore, this agreement should be seen not only as a tool for trade development, but also as a strategic opportunity to increase export potential, improve standards and sanitary and phytosanitary regulations, modernise logistics infrastructure, and engage Mongolia more actively in regional economic integration.
According to our estimates, the implementation of this agreement is expected to increase Mongolia’s GDP by 2 percent, investment by 57.2 percent, and Mongolia’s exports to the Eurasian Economic Union by more than 24 percent. Particularly significant opportunities exist for mutually beneficial joint projects in areas such as energy, mining, rail transport, logistics, agriculture, environmental protection, and industry. At the same time, there is strong potential in projects across the transport, transit, and logistics sectors.
Kirill Tokarev: Thank you very much.
Mr President, a few questions for you, if I may.
We are continuing to talk about people’s lives, even though we started with macroeconomics. I suggest we turn to the attractiveness of living in the Far East. I made a note when you were talking about the standard of living and household incomes, which are growing at a rapid pace and quite significantly. You misspoke: you said, quote: “the cost of living is also higher.”
I understand that it is impossible to keep all the figures in your head, but I still have a question. Moving away from macroeconomics, how much might a kilogramme of apples cost somewhere in Kamchatka?
Vladimir Putin: The price of a kilogramme of apples is an important indicator. But something else is also important: how do we equalise the standard of living and the cost of living across the different regions of Russia? This is what we are striving for. This is, in fact, our goal: to ensure that the incomes of all people and, most importantly, their access to all the benefits of civilisation, including in economic terms, are equal. I repeat, for all families and all citizens of the Russian Federation. But there are problems here that prevent us from reaching this goal yet.
What problems? Logistics. It is a long way to deliver goods here, which makes them more expensive, and there is a shortage of transport capacity. I am talking about aviation. There is even a shortage of rail capacity. That is why we are working so hard on expanding the so-called Eastern Corridor, increasing the capacity of the Baikal-Amur Mainline (BAM) and the Trans-Siberian Railway. We need to focus more on developing the airport network here, and so on. We need to build new energy-generating capacity here to make energy cheaper. We need to develop greenhouse farming here. If electricity is cheaper, food will be cheaper. That is what we need to think about.
And if you compare the price of a kilogramme of apples here with, say, Rostov, they are probably cheaper in Rostov because they are easier to produce there and there is no need to transport them anywhere. You can eat them right there.
But we also have an overall shortage of apples. We need to think about this and work hard.
Kirill Tokarev: I would still like to clarify one more thing. Is it possible to bring prices in the Far East in line with those in Central Russia, for example – let us not take Rostov, where apples, melons, and so on are always abundant – by developing logistics and providing cheaper electricity? We will discuss electricity separately. Or does economic logic inevitably dictate the prices when you have a population of 300,000 in a region?
Vladimir Putin: Of course, it is possible, and it is necessary. That is what we are striving for. You have mentioned apples. Ask about fish and seafood. They are available here in greater quantities and at lower prices than the Russian average. These are simply the specific characteristics of the different Russian regions.
Let me remind you that we have the largest territory in the world. No country in the world is larger than Russia in terms of the area it covers. And logistics and transport connectivity are extremely important.
In my speech, I mentioned the need to use advanced technologies, including unmanned aerial vehicles, and we will be conducting this experiment here. I hope it will also yield positive results. We are thinking about this and proposing solutions. We will see how it all develops.
Take, for example, the expansion of the so-called Eastern Operating Domain. Of course, this requires tens of billions in investment and it takes time; it is a long-term project. We inherited much of what was built in the past, back in Soviet times. We have to improve and develop it, but we also need to come up with our own solutions, as I have just said.
As for the energy sector, we will also take a modern approach here. There are many challenges, a great many of them. We need to build new generating capacity. We were talking about this with our colleagues yesterday. We need to develop hydropower, solar power, wind power, nuclear power, including both large-scale nuclear units and small modular reactors. By the way, we now have the first small-capacity floating nuclear power plant in the North. We are already working on building additional small-capacity plants of this kind.
As a matter of fact, I believe Russia is still the only country in the world that is not simply talking about the need and potential for developing small-scale nuclear power but is actually doing it. No one else is doing it. Various options are being offered to our potential partners and customers, but so far no one is actually using or building small-capacity nuclear units for their own needs. We are building them, and we are using them here in the Far East – for the first time in the world. They are operating effectively.
We will do all of this together. It is a major, comprehensive undertaking. We have already begun. I am confident that we will continue to move forward with the same energy and determination as we did at the very beginning.
Kirill Tokarev: Thank you.
The work underway is truly enormous, in developing Russia’s energy sector in the Far East and beyond. In your view, is it nevertheless sufficient to prevent energy shortages in the future? Are these concerns realistic? According to various estimates, by 2030 we could face an energy deficit of around 14 gigawatts, 15 gigawatts and so on.
Vladimir Putin: It is a question of making investments in a timely manner and, to a certain extent, redistributing these generating capacity across the country. There are several possible solutions. We can spread the cost of electricity across the country as a whole in order to make it cheaper here in the Far East. That is what we are doing, because there is currently no other way. But the most important thing is to build generating capacity here.
I have listed the possible options for generation, but there is another component – the electricity grid. This is another major area of work, involving support for the relevant grid companies, both regional ones and our largest grid company. All of this is incorporated into our plans, and we are working on all these areas. I am confident that we will achieve results.
Kirill Tokarev: Thank you, Mr President.
I would like to hand over the floor to Mr Ding Xuexiang, member of the Politburo Standing Committee of the Chinese Communist Party and Vice Premier of the State Council of the People’s Republic of China.
You have the floor, please.
Vice Premier of China Ding Xuexiang (retranslated): Mr President Putin!
Ladies and gentlemen, friends,
I am delighted to be back in Vladivostok for the 11th Eastern Economic Forum. On behalf of the Chinese government, I would like to take this opportunity to extend my heartfelt greetings on the opening of this year’s forum.
The Eastern Economic Forum has become a leading platform for jointly planning cooperation and promoting development. At the invitation of President Putin, President Xi Jinping has attended the forum twice and delivered comprehensive speeches, setting out China’s position on regional cooperation in Northeast Asia in full. These remarks received a broad response from the international community.
On the sidelines of the 4th Eastern Economic Forum in 2018, President Xi Jinping proposed working hand in hand to promote peace, stability, development, and prosperity, stressing that a peaceful, trusting, united, and stable Northeast Asia serves the interests of all countries and meets the expectations of the international community.
I was deeply honoured to hear his speech at the opening plenary session of the 6th Eastern Economic Forum. President Xi Jinping noted that regional cooperation in Northeast Asia faces not only serious challenges but also important opportunities. He called for a focus on development trends both in the region and globally, and for concerted efforts to achieve common growth in trying times. All of this sets benchmarks for advancing regional cooperation.
Over the past year, under the strategic leadership of President Xi Jinping and President Putin, international cooperation between our countries, including in the Northeast China – Russian Far East format, has delivered impressive results. China has firmly established itself as the largest trading partner of the Russian Far East. High-tech Chinese products are widely popular among Russian consumers, and high-quality Russian agricultural products are appearing on Chinese tables, to the delight of the peoples of both our countries.
China is actively supporting the construction of the Advanced Special Economic Zone and the Free Port of Vladivostok. There are about a hundred residents there, and investments total US$10.8 billion. This is sufficient to create nearly 10,000 jobs and will bring substantial economic benefits. The implementation of key joint projects is gaining momentum, including the China-Russia oil pipeline, the eastern route gas pipeline, and other projects. The construction of the Far Eastern gas export route is proceeding according to schedule, and cooperation in the joint development of the Northern Sea Route is rapidly expanding, which contributes to improving the well-being of our people.
The mutual visa-free regime is fostering the rapid development of passenger and freight transportation through checkpoints. Scenario-based business models are growing rapidly, such as cross-border and recreational tourism, as well as culture and sports consumption. Mutual travel by our citizens is becoming easier and more frequent. The feeling of happiness and satisfaction is constantly growing.
This year, we mark the 30th anniversary of the establishment of the China-Russia strategic partnership and 25 years of the Treaty of Good-Neighbourliness and Friendly Cooperation.
Following a meeting between President Xi Jinping and President Vladimir Putin this year, guidelines have been set for deepening the China-Russia comprehensive partnership and strategic prosperity in a new era, and for strengthening the entire spectrum of cooperation between our two countries.
China is ready to work together with Russia to fully implement the important agreements reached between our heads of state and ensure the further build-up of regional cooperation at a higher level, giving a fresh impetus to a healthy and sustainable development of China-Russia relations.
Ladies and gentlemen, friends,
Local residents are important participants and direct beneficiaries of regional development.
The forum’s theme this year, The Far East: Development for the Benefit of People, reflects the hopes of the Russian side for continuing to ensure and improve the well-being and development of the Far East. The Communist Party of China remains firmly committed to a human-centric development approach and regards the people’s striving for a better life as the ultimate goal of its operation. That is why we highly appreciate the forum’s theme.
Under China’s 15th Five-Year Plan, the concept of “putting the people first” was set as one of the fundamental principles of socioeconomic development. Under the new approach in the new era, we are paying greater attention to ensuring and improving people’s well-being in the course of development, so that the benefits of China’s modernisation can be shared fairly by all our people.
President Putin has just outlined the key priorities for promoting the socioeconomic development of the Russian Far East. As the Far East Development Strategy is being successfully implemented, conditions for the region’s development are steadily improving, including in terms of industrial development and human resources, while new opportunities are emerging for regional cooperation and improving the well-being of the peoples of our two countries.
I would like to share the following perspectives.
First, we must promote open and inclusive development so as to bring greater benefits to our peoples. The satisfaction, support and approval of local residents are important objectives in developing regional cooperation, as well as a key factor in strengthening the internal drivers of development. The Chinese side stands ready to continue working with Russia to deepen cooperation in aligning the joint development of the Belt and Road Initiative with the development of the Eurasian Economic Union, to deepen the alignment between China’s Northeast Area Revitalisation Strategy and Russia’s Far East Development Strategy, to work intensively to invest both in physical and human capital, so that the peoples of our two countries can derive greater benefits from development and revitalisation.
It is important to make full use of the Far East’s geographical and resource advantages, focus on major projects in priority areas, and ensure the stable operation of key energy infrastructure and supply routes. In order to strengthen the economic foundation for improving people’s well-being, we should respond to the needs of the population, strengthen mutual support among regions, plan the development of specialised industries, support cross-border trade for local residents, launch a number of practical projects with short payback periods, and ensure broad participation by local people in the development process and in sharing its benefits.
Second, we must create a favourable business environment and facilitate the activities of all types of economic entities. Convenience and a business-friendly climate are the most important demands from investors and a key indicator of the region’s economic soft power. China is ready to work with Russia to properly implement the new version of the China-Russia Investment Cooperation Plan and the updated Agreement on the Promotion and Mutual Protection of Investments, and to provide timely assistance to enterprises in addressing pressing issues.
We also welcome the growing presence of Russian enterprises in the Chinese market through the pilot free trade zone and the comprehensive bonded zone. We support large Chinese companies in doing business in the Far East, building on Russia’s preferential policies within the Free Port of Vladivostok and the Priority Development Areas. We expect the consistency and stability of these policies to be maintained, with new preferential and favourable terms to protect the legitimate rights and interests of market actors and create favourable conditions for Chinese companies.
Third, we must intensify friendly exchanges and strengthen the foundations of spiritual rapprochement between our peoples. Friendship between peoples is a solid foundation for interstate cooperation and a key driver of peace and development. According to a recent VCIOM poll, over 90 percent of Russian citizens hold a positive view of Chinese-Russian relations.
The Chinese side is ready to work with the Russian side to deepen exchanges and cooperation in culture, tourism, education, sport and youth affairs, to continue the traditional friendship between the people of our two countries, and to strengthen mutual understanding through friendly exchanges. At present, it is important to focus on taking measures in preparation for Chinese-Russian cooperation in education, to promote close interaction between universities and research institutions, and to intensify youth exchanges in order to foster the builders and successors of the centuries-old friendship between China and Russia.
Fourth, we must ensure stability in the region and build a beautiful home for our people. Peace and harmony are shared aspirations and a fundamental component of the well-being of both our nations.
China’s Northeast and Russia’s Far East are connected by shared mountains and rivers. Our common border, which stretches for over 4,000 kilometres, binds our two countries like a belt of eternal peace and friendship. It is a crucial basis for the development and revival of our countries.
China has always played a constructive and supportive role in promoting peace in the region. We are ready to work with our partners to strengthen contacts and interaction, uphold the goals of the UN Charter, protect international justice, and counter attempts to question the results of World War II and the post-war world order. Our aim is to jointly develop our region as good-neighbourly, trust-based and calm.
Ladies and gentlemen, friends,
This year marks the beginning of the 15th Five-Year Plan. Despite a complicated and harsh external situation, we have maintained China’s economic stability, found new driving forces, streamlined its structure, giving our economy high stress tolerance and great stamina.
In the first six months of 2026, China’s GDP increased by 4.7 percent year on year. This represents the highest growth pace among the world’s leading economies, which provides a solid foundation for achieving our planned economic growth figures for the year. It is especially notable that added value in large-scale high-tech manufacturing and digital goods production accounts for 13.3 percent and 12.3 percent, respectively, including in high-tech manufacturing, the digital and intellectual economy, and the modern service sector. Our economy has grown by over 40 percent, and these forces are becoming the key drivers of economic development.
The fundamental trend towards China’s long-term economic development is growing stronger, with sufficient scope for the implementation of our macroeconomic policy. We are confident that we can ensure stable and healthy economic development and commence the implementation of the 15th Five-Year Plan.
China has been consistently increasing its openness to the world at a high level. Despite any changes in the external situation, China’s door will only open wider. We welcome the desire of businesspeople from different countries to continue investing in the Chinese economy and to work in China, boosting their own development through involvement in China’s modernisation, thereby contributing to prosperity and stability throughout the world.
In conclusion, I would like to wish fruitful work to all forum participants.
Thank you.
Kirill Tokarev: Mr Ding Xuexiang, please put on your earpiece.
As you know, China holds the chairmanship of the Asia-Pacific Economic Cooperation (APEC) forum this year, in 2026. Could you please share with us how the year is progressing, what events have already been organised, the initial results achieved, and the anticipated outcomes of this summit cycle?
Thank you.
Ding Xuexiang (retranslated): This year, China is hosting the APEC summit for the third time. Under the theme “Building an Asia-Pacific Community To Prosper Together,” we stand ready, together with all nations, to chart the course for cooperation and pool our efforts to promote the development of the Asia-Pacific region.
The forthcoming informal APEC Economic Leaders’ Meeting in Shenzhen this November will serve as the culminating event of China’s APEC chairmanship. We extend a warm welcome and look forward to the participation of President of Russia Vladimir Putin and President of Indonesia Prabowo Subianto in the summit.
With regard to the key anticipated outcomes of this informal Leaders’ Meeting, active preparations are underway. We expect to reach agreements in three main areas.
First, the establishment of a free trade zone in the Asia-Pacific region. It is essential to advance cooperation in a flexible and pragmatic manner and coordinate various free trade arrangements to forge a high-standard regional trade framework.
The second area is regional connectivity. We are prepared to further identify additional areas of convergence and to work closely together to enhance connectivity in infrastructure, in regulatory norms and standards, and in fostering a spiritual affinity among peoples.
The third area, which is of a particular importance to us, is digital and intelligent transformation. It is imperative to promote the development of artificial intelligence in a proper and commendable direction, and to cultivate new drivers of innovative growth in the Asia-Pacific region.
Thank you.
Kirill Tokarev: Thank you very much.
Mr President, since we are talking about the APEC summit, allow me to briefly digress, with your permission, before we return to the economy, the revitalisation of the economic cycle, and so forth.
Last night (or, I am not sure, this morning, Moscow time) the President of the United States, Mr Trump, said he was ready to meet with you, for example, at the APEC summit, but only if a peace deal for Ukraine had been agreed. Meanwhile, you have previously said that the negotiation process, the peace process, is essentially frozen.
I won’t even mention the “spirit of Anchorage”; it seems to have been completely buried. I don’t know whether you agree with that or not, but behind the scenes, it is being discussed in precisely those terms. Russian assets around the world are under attack – even the Professor Molchanov, a Roshydromet vessel, a civilian ship, I believe, was detained – and so on.
In your opinion, is there even a minimal prospect of peace talks – constructive peace talks, not just empty ones – regarding the Ukrainian conflict at this time? Because the American side seems to be saying: we are ready, but only after everything has already been agreed by someone else, that is, without their involvement.
Mr Bessent also indicated that, from the American side, economic cooperation could only resume once an agreement on Ukraine had been reached. Is something possible now, right now?
Thank you.
Vladimir Putin: Is this the wrong approach? I believe it is the right one. Russia and Ukraine must first reach an agreement between themselves. All other countries, not just the United States, but also the countries represented here, are ready to support and assist. The People’s Republic of China, for example, constantly brings this up and does everything it can to ensure that the problem is resolved, primarily by peaceful means. President Xi Jinping, whenever we meet, also consistently raises this issue.
But first and foremost, this issue should be dealt with by the countries involved in the conflict, Russia and Ukraine. This is the right approach. But we are thankful to everyone who is trying to make a contribution to solving this issue.
Is there a chance? I believe that we do have a chance of finding a solution.
The hijacking of civilian ships, the attacks on civilian merchant vessels that you brought up – and, more importantly, the threats to attack civilian aircraft that we have now heard about – all of this is, of course, a manifestation of state terrorism, and it undoubtedly complicates the prospects for bilateral peace talks.
Incidentally, those who remain silent, those who ignore this – meaning primarily Ukraine’s Western allies – are becoming accomplices to international terrorism. Well, how could it be otherwise? It cannot be interpreted in any other way.
As for our contacts with the US Administration, they are ongoing. We are in contact with the US Administration now, to this day. I hope these contacts will continue. We are committed to restoring full-fledged relations with the United States, but this does not depend solely on us; it also depends on the American side.
President Trump, as far as I understand, feel, and see, is committed to positive, constructive work. Everyone already knows about the contacts between intelligence agencies and the Administration representatives whom President Trump is appointing to continue the dialogue with Russia. It is all working. I hope it will ultimately lead to a positive outcome.
We have many friends in the United States. One of them in this room is Mr Steven Seagal – I trust you will give him a warm welcome. He is the best ambassador for peace – well-known worldwide not only as an actor but also as a great friend of Russia in our country.
Kirill Tokarev: I have never met Mr Seagal in the United States, but in the Far East, particularly in Vladivostok, for several years now he has been a regular part of our forum.
You mentioned earlier that you still have contacts in Ukraine. How constructive are they, and how much do they contribute to ending the conflict and moving towards a peace agreement?
Vladimir Putin: You know, it is difficult for me to say right now how much they actually contribute to a peace agreement, given the statements we have heard recently from Ukraine’s top officials. But contacts are indeed maintained, and they continue – primarily through security services.
Kirill Tokarev: Thank you very much.
Vice President of the Republic of the Union of Myanmar U Nyo Saw is with us today.
Please, you have the floor.
Vice President of the Republic of the Union of Myanmar U Nyo Saw (retranslated): Your Excellency President of the Russian Federation Vladimir Putin,
Your Excellency President of the Republic of Indonesia Prabowo Subianto,
Your Excellency Prime Minister of Mongolia Nyam-Osoryn Uchral,
Your Excellency Mr Ding Xuexiang,
Ladies and gentlemen, I extend my greetings to you all.
It is both a great honour and a privilege for me to participate in the plenary session of the 11th Eastern Economic Forum. First of all, I would like to express my sincere gratitude to President Vladimir Putin, to the Government of the Russian Federation, and to the Forum’s organising committee. You have established a truly significant platform for dialogue, cooperation, and the advancement of our nations.
The Eastern Economic Forum has emerged as a pivotal venue for economic cooperation, investment, innovation, and regional contacts throughout the Asia-Pacific region. Amidst the profound global changes we are witnessing, this forum serves as a powerful driver for reinforcing partnerships and identifying new avenues for sustainable development.
The theme of this year’s Forum, The Far East: Development for the Benefit of People, encapsulates the essence of the region’s progress and must serve the interests of the people. Indeed, such cooperation between the Far East and our nations is of considerable importance in this context.
The President of Russia and President of the Republic of the Union of Myanmar Min Aung Hlaing recently held a meeting. Thanks to the wise leadership of both heads of state, we have achieved significant outcomes and further consolidated mutual trust, friendship, and cooperation. We will continue to consistently implement the agreements reached during the discussions held in the Kremlin.
Ladies and gentlemen,
Myanmar is convinced that technological progress must serve all of humanity and foster inclusive development. Digital transformation, artificial intelligence, innovation, and modern infrastructure must be harnessed to create opportunities for businesses, enhance public services, and elevate the socioeconomic well-being of our citizens.
International cooperation remains an indispensable instrument in addressing such global challenges as economic instability, disruptions to supply chains, issues of food and energy security, climate change, and the demands of technological advancement. We must recognise that these matters affect us all, both globally and across the Eurasian space. It is imperative that we strengthen our cooperation and forge robust, resilient partnerships in order to overcome these difficulties collectively.
Myanmar is steadfast in its commitment to advancing digital technologies by improving integrated communications, developing digital skills, introducing innovative solutions, and making effective use of modern technologies in the agricultural, industrial, educational, and public administration sectors.
Yadanabon Cyber City – Myanmar’s first and largest ICT centre – is now open for investment. We invite you to join us as partners in digital transformation. Together, we can develop modern services and communication, introduce artificial intelligence and digital payment systems, and foster an innovative business environment. Myanmar is firmly convinced that the most effective route to sustainable development and regional prosperity lies in cooperation.
Ladies and gentlemen,
Myanmar is strategically located between Southeast Asia, South Asia and China, forming a land bridge connecting the world’s largest markets – India, China, and Central Asia with a population exceeding 660 million. In addition, Myanmar is a member of ASEAN, the Lancang-Mekong Cooperation (LMC) and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). Myanmar is also a member of the Regional Comprehensive Economic Partnership, the largest free trade agreement which opens access to the markets of China, Japan, South Korea and Australia.
Myanmar is located in the centre of regional transport routes, such as the India-Myanmar-Thailand Trilateral Highway, the ASEAN Highway Network, the East-West Economic Corridor, and the China-Myanmar Economic Corridor. Therefore, Myanmar has a vast potential for becoming a country that can establish ties with Asian economic routes.
Myanmar is actively developing its transport infrastructure, pursuing a stable domestic trade policy, and modernising its border economic zones to facilitate cross-border trade.
Ladies and gentlemen,
Food and energy security have become strategically important for all countries in the modern world. Myanmar’s favourable natural conditions, vast territories and rich natural resources allow us to focus on agriculture as a means of ensuring food security. We are not only trying to produce agricultural and livestock products but are also building an agricultural supply chain comprising processing, storage and transportation of value-added goods. We are cooperating with international associations to promote mutually beneficial cooperation in the sphere of renewable energy.
Ladies and gentlemen,
Myanmar continues to strengthen friendship, mutual understanding and cooperation with its partner countries on the international stage. President of the Republic of the Union of Myanmar Min Aung Hlaing has recently made official visits to the Russian Federation, the People’s Republic of China, India, Thailand, and Laos. These visits have not only strengthened friendship and mutual understanding between Myanmar and its partner countries but have also created valuable opportunities for broadening practical interaction and cooperation. In particular, the long-standing relations between Myanmar and Russia are based on friendship and mutual respect. We continue to cultivate this friendship, progressing towards practical cooperation in the economic and development spheres.
Despite the geographical distance between them, Myanmar and Russia maintain strong and close relations. Our countries are cooperating across many spheres and provide mutual support at regional and international levels.
Myanmar is now implementing joint projects with the Russian Direct Investment Fund in the oil, gas and industrial sectors. In addition, our two countries are discussing and implementing several projects, including an ironworks and a fertiliser plant, a deep-water port in the Dawei Special Economic Zone, and fuel exports.
As an ASEAN member, Myanmar welcomes the development of cooperation between Russia and Asia. The Far East can become a major channel for strengthening Russia’s economic ties with the Asia-Pacific region, connecting the economic might of the Far East with the vast Asian market, and offering new opportunities for business that will benefit both countries.
Since Myanmar would like to join the Eurasian Economic Union, the Far East, which is a major transit and trade hub for interaction with EAEU countries, could become an even more important platform for building up trade cooperation between Myanmar and EAEU countries.
Myanmar is ready to work together with all its international partners, including Russia, to promote sustainable development, strengthen ties, encourage innovations, and build a more stable regional economy.
Ladies and gentlemen,
We have entered a period of large-scale economic and technological shifts. It is becoming obvious that no country alone can fully realise its potential. Myanmar is ready to cooperate with all countries attending this forum and ASEAN nations, as well as regional and international partners, including the Russian Federation, to make our region more interconnected, strong and prosperous.
We also call on you to work together so that our nations will be able to use the advantages of economic development, as we have opportunities to further strengthen ties between the Russian Far East and Asia and to transform our geographical ties in the economy.
In conclusion, I would like to wish great success, dynamic progress, peace and prosperity to all representatives of the countries attending the Eastern Economic Forum.
Thank you.
Kirill Tokarev: Mr Vice President, you have mentioned a few large regional projects. I have written them down: the India-Myanmar-Thailand Trilateral Highway, the Thilawa Special Economic Zone, the deep-sea port, and many others. Overall, as you have noted several times, Myanmar holds a strategically important geographic location in the region.
Can you tell us how that strategic location can be translated into concrete transport, investment and other projects? In particular, what role could and should the Russian Federation play in these projects? What could attract Russia and the Far East, meaning the Russian Far East?
U Nyo Saw: Thank you.
Before answering your question, I would like to say a few words about Myanmar. Myanmar is a strategically important country, located at the crossroads of South Asia, Southeast Asia, and China. As a member of ASEAN, it holds not only strategic but also economic importance.
Our country shares borders with China, India, Laos, and Thailand. We have a population of more than 51 million, around 70 percent of whom are of working age. Our hot and humid monsoon climate allows us to engage in agriculture and livestock farming throughout the year.
In answering this question, I believe it is important to turn Myanmar’s advantageous geographical position into a foundation for developing economic hubs capable of attracting trade, investment, and manufacturing, rather than viewing it merely as an advantage in itself.
Myanmar is situated between major markets, including India, China, and Central Asia, with Thailand to the east and the Bay of Bengal and the Andaman Sea to the west and south. This gives the country the potential to serve as both a land and maritime bridge connecting Southeast Asia and East Asia.
The Thilawa Special Economic Zone (SEZ) is an important practical example for us. Located near Yangon, the SEZ covers a total area of 2,400 hectares. It is a public-private partnership involving the Myanmar government and foreign investors. Its success is reflected in the following figures: as of 2026, 126 companies from 22 countries have been approved and are operating in the zone, with total investment reaching US$2.23 billion. The project has created 12,000 jobs.
Another special economic zone, Dawei, offers a different set of advantages from Thilawa. Dawei is a deep-water port with the potential to become a major trade gateway linking the Andaman Sea, Thailand, and the Indian Ocean. The Dawei SEZ also offers tax exemptions for a specified period. We are currently negotiating with Russia on the implementation of the Dawei SEZ project and intend to move forward with it. We see Dawei not simply as a port, but as an integrated economic corridor capable of connecting landlocked countries in northern Asia with countries to the south. The project encompasses a deep-water port, an industrial zone, facilities for energy generation, storage, and distribution, and a strategic logistics hub. In particular, the Russian Far East could gain access to the Indian Ocean through the port of the Dawei SEZ, either via China or across the Pacific Ocean. I believe this could pave the way for a new network of trade and logistics centres linking the Russian Far East, Myanmar, and Central Asia.
Thank you very much.
Kirill Tokarev: Thank you very much.
Mr President, with your permission, I would like to continue our discussion on investment. Without investment, nothing is possible – not housing or roads, not new power generation or data centres. I think we’ll also be talking about data centres and artificial intelligence – because where would we be without it? Our colleagues have mentioned it as well, or rather, this whole range of technologies.
You have said that restarting the investment cycle is an extremely important task, and one that we need to accomplish. I would like to discuss where the money for this new investment cycle will come from.
I have just one slide here, based on a survey our colleagues at the Russian Union of Industrialists and Entrepreneurs helped us conduct among the RSPP Bureau and Board. We asked them one simple question: Does your company have the resources to participate in launching a new investment cycle? Nine percent said yes. Thirty-one percent said yes, but only to a very limited extent. Thirty-eight percent said no. And 22 percent found it difficult to answer – which I can certainly understand.
So it turns out that a significant share – and I won’t go into the details, because the situation is more complicated than that – of the companies we presumably expect to drive this new investment cycle are not really in a position to invest.
So where will the money come from? Private capital, which you have also mentioned? Bank lending? Traditionally, the share of bank lending in investment has not been very high in our country. Perhaps state investment? But we started out by talking about the budget. So how do we restart the investment cycle?
Vladimir Putin: By creating stable conditions in the economy. Our guest – our friend from the People’s Republic of China – said that he considers stability in economic policy one of the most important priorities. And that is indeed crucial. That is exactly what we are working towards.
As for the sources of investment, there can be many. If we create stable conditions in the economy, investment will also come from abroad – and, in fact, it already does. Our colleagues have outlined their plans for developing projects that are of great interest to them. This is particularly clear in regions of the Russian Federation such as the Far East
I outlined a number of these areas in my address, but they are by no means the only ones. These are simply long-term areas where there is strong potential for cooperation.
As for relations with Russian businesses, they are being developed on a solid basis. Yes, we know about this, because we maintain regular contact with our colleagues, some of whom are present in this room. We understand what it is and the reasons behind the key interest rate hike, and we know how the economy operates in these conditions.
As I said, this is a conscious decision connected with the maintenance of macroeconomic stability. Without it, there will be no investing to talk about. We must attain the goal of macroeconomic stability. As I said, we had double-digit inflation rates. What investment projects are there to talk about with a double-digit inflation? It is absolutely impossible.
Yes, the key rate increased at the first stage, and now it is going down and has reached 6.3 percent, as I said. In other words, we are gradually normalising this situation.
Overall, I know several people in our industries – their way of thinking, what they talk about, what bothers them. And I also know what representatives of the financial sector say. Many believe that the Government, the Central Bank and other regulators are overdoing regulation, and that the time is right for moving over to a softer monetary policy. Overall, the situation is stable. Incomes in the banking sector are quite substantial and are growing at Sberbank, Vnesheconombank, VTB and Rosselkhozbank. The situation is stable, they have an income, and the question only concerns conditions.
Here is another important thing I would like to draw your attention to. In principle, we also have a sufficient number of support instruments. Do you know what the catch is? When we talk about public-private partnerships, which are a promising method of organising a new cycle of investment, it is essential for both sides – private businesses and the state – to comply with conditions and honour their obligations.
I remember very well that these situations were different in different periods, including during the 2008 global financial crisis. I was Prime Minister then, and I remember it very well. But even back then, the state honoured its obligations and contributed its part of resources to the projects it co-financed with private business. But our colleagues from private businesses should act accordingly and contribute the relevant resources in due time, as set out in public-private partnership agreements.
And finally, something important that we have also discussed. It is not just about the key rate or the macroeconomic components of all this activity. The fact is that we have major investment projects whose cycle has more or less come to an end, and we need to begin a new cycle. These projects – I will not list them all now – implemented by private companies with government support, primarily for the creation of necessary infrastructure, are being completed, and successfully so. We need a new cycle.
We will work on this together, and I have no doubt we will achieve it. We are constantly – I will go into more detail now – keeping this under review. Both the Government and the Central Bank are in continuous dialogue. Their views are never 100 percent aligned, but that is normal. That is precisely where the opportunity to find optimal solutions lies. I am confident they will be found; the process is ongoing.
If you ask representatives of the Central Bank, they will tell you that lending is growing. I know and see that lending is growing, including for the restructuring of previous loans. We all understand this, but there is something new. Gradually, step by step, the state must create conditions for investment in those industries that are most important for the growth of the economy as a whole. The work is ongoing. I am confident the outcome will be positive.
Kirill Tokarev: Thank you.
Am I correct in understanding this? You said that the drivers of economic growth in the Far East and Russia as a whole in recent years have been large enterprises, large projects, capital-intensive projects. You have listed many of them; there are a huge number in the region, and many have been built across the country. But am I correct in understanding that the foundation of the new cycle will not be such megaprojects, but perhaps more modest ones – less capital-intensive, based on high technology, more in-depth processing, and so on? That is the first question.
And I cannot help but ask the second one straight away. After all, these years of stability (and stability is extremely important to us; arguing with that is foolish and pointless, of course), of extremely low, near-zero growth – do they not pose some internal risks? Some estimates suggest we will not be able to break through the 1.5 percent growth rate for at least ten years. Is that a sufficient level for Russia?
Vladimir Putin: As you know, over the past three years, our economy has grown at a pace substantially exceeding the European average. At present, growth stands at approximately 0.6 percent, yet it continues, and indeed, it may well surpass this – I have no doubt whatsoever.
Let me reiterate: this is a matter of principle. If we maintain the principal advantages of our economy – namely, a stable, dynamic, and robust economy, underpinned by sound macroeconomic fundamentals – all other matters will, in due course, fall into place. Rushing ahead, inflating the money supply and expecting that such measures will have no impact whatsoever on inflation – this, it seems to me, is far more dangerous. It is more dangerous because, amid runaway inflation, it becomes extremely difficult, if not virtually impossible, to devise development strategies and long-term investment plans. The truth, as is so often the case, lies somewhere between those who advocate ever-greater monetary injections and those who urge restraint and prudence.
Indeed, I meet with representatives of the business community almost daily – every single day – as well as with representatives of the banking sector. I am fully aware of these matters and continue to monitor them closely. I am confident that, in balancing these two approaches, an optimal solution will be reached and stability will be ensured. And where there is stability, I am certain, investment will follow.
Kirill Tokarev: Thank you.
Mr President, in your address – as I noted – you passed the baton, as it were, to the State Duma, elections to which will be held very soon, and essentially, if I have understood you correctly, you have issued a sort of mandate to improve the business climate. Is my understanding correct? To what extent, then, is our parliament assuming new powers and responsibilities? To what degree does this fall within the authority of the State Duma? And in your view, what tasks should the new parliament address as a priority?
Vladimir Putin: In accordance with the amended Constitution, parliament has been vested with highly significant powers regarding greater participation in the formation of the Government. This is very important: parliament now exerts a direct influence on the appointment of ministers and deputy prime ministers. This is significant because deputies have the opportunity to assess the professional qualities of each senior official, and this, naturally, is extremely important for staffing our future joint endeavours.
In addition, our parliament, just like parliaments in other countries, adopts the main financial plan, the budget, and addresses the allocation of state resources for fulfilling various tasks and achieving goals. Returning to what I mentioned in my address, I strongly hope that parliament will support the initiatives the Government will propose in the immediate future, the ones I have mentioned.
But we must primarily organise our joint efforts so as to develop high technologies and create highly paid jobs. This is crucial for creating a favourable basis for economic development.
I would also like you to know that despite all the difficulties – and there are plenty in every country, including our country – real wages in Russia have increased by 6.3 percent in the first quarter of the year, and the unemployment rate is only 2.3 percent. Incidentally, it is only 2.2 percent in the Far East.
Kirill Tokarev: Thank you.
Mr President, during this session, you have repeatedly mentioned the importance of developing a highly effective technological economy, and a high-tech economy. Can we shift our focus from this and towards people, from money to people
We want to create this high-tech economy, but people in Moscow, and not only Moscow, complain that schoolchildren, and therefore parents, because the family is a single mechanism, are actually forced out of the 10th and 11th forms.
Vladimir Putin: I don’t understand what you are talking about. People in Moscow complain about schools? I have never heard this before. There can be mistakes and shortcomings, but I think that the system of general education in Moscow is a model which all other regions of the Russian Federation should try to emulate.
Kirill Tokarev: I was talking about the country as a whole; I simply didn’t have time to say that it is the same in other regions too.
Vladimir Putin: You said that people in Moscow complain. Anyway, I will talk with [Sergei] Sobyanin; he should look into the things people are criticising. This is the main indicator.
Kirill Tokarev: Good. Since there is no proof, although we receive numerous complaints…
Vladimir Putin: Of course, people always find something to complain about.
Kirill Tokarev: Thank you.
Let us continue our conversation. Mr Subianto, I would like to ask you about the prospects for energy cooperation with Russia and potential joint energy projects, as well as opportunities beyond the energy sector, beyond the areas where our countries have traditionally enjoyed successful cooperation.
Prabowo Subianto: I think we are considering all prospects. We have discussions on cooperating with Russian groups to jointly develop projects, refineries, and storage terminals in the field of energy. We have now a lot of LNG, so in some parts, actually, we do not directly, let us say, need Russian gas, but rather Russian technology, and we are very open to joint development.
We have just given the information to our Russian counterparts that Indonesia has now opened 138 blocks for energy exploration, and we are inviting Russian groups, Russian corporations, [to participate] with their technology in these 138 blocks. So, discussions are going very well. I think today there was an MOU signed between our fertiliser company and one of the biggest groups here in Russia to jointly invest in producing fertiliser from gas here in Russia, here in the Far East.
So, these projects are going very well, going far ahead, and we are also going very far ahead in the field of processing, for instance, mining. We are working with, I think, the biggest aluminium entity in the world, Rusal. Rusal is coming in a big way to Indonesia, developing a refinery together with Indonesian groups. And we are still looking forward to more and more Russian-Indonesian joint cooperation. Thank you.
Kirill Tokarev: Thank you very much.
Mr President, you noted that representatives of Russia’s largest banks are present in this hall. I cannot help but ask, once again, about the sources of funds. Forgive me, it always comes down to money; it is a professional bias.
Can the Russian stock market today serve as a source of funding for a new investment cycle? After all, there is your instruction to double its size. Yet here, I believe I can confidently state that we appear to be experiencing a rightward shift. Or are we about to take a leap and double it?
Vladimir Putin: Leaps, in general, are not a bad thing, but we need to proceed calmly and at a measured pace. We are fully aware of the state of the Russian stock market. We also recognise the challenges it faces. I am confident that both our economy as a whole and the level of professionalism among those working in this sector are sufficient to ensure progress.
You just mentioned children being pushed out of school in the 10th and 11th grades. I do not believe they are being forced out; rather, conditions are being created – or, at the very least, efforts are being made to create such conditions – to provide what is most in demand in the Moscow economy in this particular case. And what is most in demand now, both in Moscow and across the wider economy? Highly skilled mid-level specialists and highly skilled workers.
(Applause.)
I take it that it is the business representatives who are applauding at this moment. This is precisely what is needed today.
Naturally, this cannot be achieved through coercion or by pushing anyone out; it is necessary to create appropriate conditions. The level of remuneration for those individuals is quite high, and young people are showing great interest – considerable interest – but, of course, we must proceed with the utmost care.
In just the same way, in the sector you referred to, we should act with caution, but also consistently. The sources do exist. The Sberbank CEO must have spoken – I am not certain, but he has probably said this at various forums – about the scale of their earnings. (Addressing German Gref.) How much is it? Four trillion? What are your earnings? Some 1.7 trillion? One bank alone has earned 1.7 trillion! And others have seen some additional growth as well. They are expanding, you see?
The key issue concerns the rate offered by the banks; that much is clear. Yet in order to secure a favourable rate – and I repeat this for the third time – the economy must be stable, the money supply must correspond to how much we produce, and so forth. There are many factors at play here. You represent RBC, and you have excellent professionals there; we all understand precisely what is at stake. So, the money is available; the only question is how it is to be applied wisely.
By the way, the Government is not simply sitting back and idling. Nor can our monetary policy be described as too tight. Just look at the range of instruments the Government is offering: the investment factory mechanism, various preferential programmes administered by the Ministry of Industry, a whole package of them. There are so many that listing them all would take pages. They all provide incentives and various forms of subsidies, whether for specific large-scale projects or for particular industries. All of this is being done. The question is how to proceed carefully. In my view, overall, we are managing to navigate this path with great care.
The stock market is, of course, one of the most important instruments for economic development. We understand that it is currently experiencing a certain downturn, but I believe that it will gradually recover as macroeconomic indicators remain stable and continue to improve.
Kirill Tokarev: Thank you very much.
Thank you, Mr President, including for your kind words about the work of my colleagues. Once again, however, I feel I should clarify that I was in no way accusing the capital of driving students out. As far as we know, this problem is more typical of the regions, while the capital actively shares its best practices in education, healthcare, finance, and other areas.
There is another subject I cannot avoid raising. Although we at the holding company try not to fuel speculation, I have to ask about the prospects for household savings. They have already exceeded 70 trillion rubles – I am referring to retail deposits. Deposits by legal entities are also reaching record levels. We regularly have to explain the situation to the public and answer their questions about what they should do with their savings and, of course, whether deposits could be frozen.
Vladimir Putin: Why would they be?
Kirill Tokarev: The question keeps coming up regularly, time and again. So, I cannot help but ask you directly: should we expect a freeze or not?
Vladimir Putin: This is nothing but speculation, and rather foolish speculation at that. Why? Because even in 2022, when people had certain concerns in connection with the events we all know about and many depositors went to banks to withdraw their money, our banks continued operating normally and calmly provided depositors with the funds they requested. The situation quickly settled down, and the money returned to the banks.
As for the current level of savings, the reason is also perfectly clear. Interest rates are high, so people are putting their money in banks. That is all there is to it. When interest rates come down, the situation will change, including for businesses and other economic actors. We understand all of this very well. This is how the system works, and I am confident that the outcome will be positive.
What is the most important thing here? Yes, we see all the issues we have discussed, and we are aware of the difficulties. But the most important point – and I want to emphasise this, as I have said before – is that the Russian economy is in an absolutely stable condition. That is the key point.
Kirill Tokarev: Thank you very much.
We talk a lot about businesses, primarily Russian ones – we are also interested in foreign ones, of course, but not so much – including small and medium-sized enterprises. Should we expect small and medium-sized businesses, which have had a very hard time with the recent tax adjustments, to increase their contribution to Russia’s GDP? For example, as far as I know, small and medium-sized businesses account for 50–60 percent of GDP in China.
Vladimir Putin: The contribution of small and medium-sized businesses to the country’s economy is constantly growing. We understand that any adjustment, especially a tax increase, has an impact on the economy. Before making these decisions, the government conducted necessary assessments and forecasts. Overall, those forecasts were borne out, and even the potential negative impact of the higher rates did not prove to be as significant as government experts had anticipated. I think we have moved past that stage.
The broader issue is support for small and medium-sized businesses. We have a whole range of measures in place to support them. Of course, small and medium-sized businesses believe that this is not enough. So, naturally, we will continue working with our colleagues from the relevant business associations to find new and effective support mechanisms.
There are many issues here, including the issue of business splitting, as you are well aware, whereby companies divide their operations in order to qualify for more favourable tax rates, so that large businesses do not become medium-sized and medium-sized businesses do not become small. All of this is being actively discussed with our colleagues from the relevant associations that represent and protect the interests of small and medium-sized businesses.
The Russian government is striving to ensure that these businesses are not only protected but are also able to develop effectively, so that both the state and representatives of relevant companies understand the rules under which we operate, and work together to develop them so that the state has the necessary safeguards for taxpayers in place while they understand where they should be heading.
The most important thing, I repeat what has already been said here, is for everyone – including businesses, and in this case small businesses – to have a sense of sustainability, stability.
I must say that perhaps the government does not always act this way. Perhaps, we see certain changes too often, not only in the tax base but also in the overall fiscal burden. And small businesses always point this out to us: “All right, you promised to address tax-related issues, and to some extent you are doing so. But beyond taxes, there are other fees and, to put it mildly, other charges as well. We ask you to consider this.” I understand that, in this respect, they are absolutely right, and the government should take this into account and work on it as well.
Kirill Tokarev: Thank you very much.
Since we have touched on the experience of the People’s Republic of China, Mr Ding Xuexiang, I would like to ask you a question. Relatively recently, as I understand it, China put forward an initiative to establish a World Artificial Intelligence Cooperation Organisation – or more precisely, to collaborate on artificial intelligence. Could you outline the key idea, your approach, and your official position?
Thank you.
Ding Xuexiang: You just mentioned that the World Artificial Intelligence Cooperation Organisation was established in Shanghai, China, in July of this year. Alongside China, Russia, Indonesia, and Myanmar – a total of 38 countries – are officially recognised as its founding members. This is a very important milestone in the history of artificial intelligence.
At the conference, President Xi Jinping put forward proposals for the formation of a fair and equitable system of global governance for artificial intelligence. There are four key points.
First, development. Artificial intelligence is a key driver of the new round of scientific and technological revolution and industrial transformation. It is becoming a new engine of global economic growth, accelerating the transition from old to new drivers of growth. It is therefore important to promote scientific and technological innovation, the deployment of artificial intelligence across economic sectors, and its application in real-world scenarios, so as to facilitate socioeconomic development – that is, to support the growth of all sectors of our economy.
Second, security. Artificial intelligence is rather like Ali Baba’s cave, full of valuable treasures. But if it develops along the wrong trajectory, it could also turn into Pandora’s box – and that would be very dangerous. Therefore, as artificial intelligence develops, we must adhere to clear security safeguards, prevent the abuse and malicious use of the technology, and ensure that artificial intelligence always remains under human control. This is crucial.
Third, accessibility. That means universal access for all of humanity, because artificial intelligence is the fruit of human wisdom and the shared heritage of all nations. It is therefore essential to effectively narrow the digital and intellectual divide, so that prosperity is shared and new forms of injustice do not emerge. This is a shared commitment of all humanity.
Fourth, common governance. The Chinese Government consistently emphasises that the impact of artificial intelligence is cross-border in nature because it affects all countries, not just one. Therefore, it is essential to implement genuine multilateralism, to reaffirm the important role of the UN, to build consensus, and to establish a fair and equitable system of global governance in the field of artificial intelligence. In doing so, AI can become a powerful force for improving the well-being of all humanity. These are our shared aspirations.
Thank you.
Kirill Tokarev: Mr President, a question for you, of course. The world’s leading economies – and the People’s Republic of China is an excellent example – are investing tremendous assets in developing AI technologies. Are you happy with the progress of those technologies in our country? And I also have to ask if you have personal experience of using them via a gadget, maybe, or in the context of preparing important government documents, programmes and so on.
Thank you.
Vladimir Putin: As you understand, I work very closely with the Government and the Executive Office, and they are using all that most actively. I am using the fruits of their work, and I would like to thank them for this.
Overall, we are working very actively on this issue; I have talked about it multiple times, and it has become common knowledge. Let me repeat again: just now, my Chinese colleague said that artificial intelligence is penetrating, has already penetrated, all spheres of our lives. And those countries, those peoples that master these tools, obviously gain huge development advantages.
However, these huge advantages also carry certain risks, this is why we welcomed President Xi Jinping’s initiative who proposed uniting the global community efforts to explore these tools and prevent risks.
We are at a fairly advanced stage in this work: Yandex and some other companies – you are well aware of that – and even specific large enterprises, including those in the engineering industry, are quite actively developing all these tools. The key here, of course, is to both ensure sovereignty in a certain segment and to develop cooperation. We are moving along these lines. And I should note that we are seeing and already benefiting from the results of the efforts being made in Russia. This is one of the crucial areas of our work.
Kirill Tokarev: Thank you very much.
I cannot but move over from high technologies to an element probably a bit less technological – I want to talk about oil processing, to talk about, naturally, petrol, or rather about the general situation on the fuel market. It was a surprise to a considerable part of the Russian economy. We regretfully continue to record attacks against our infrastructure, to remedy the aftermath of what we call in very general terms a fuel crisis and continue watching. Do we, after all, have any idea how to prevent such situations? And there are also marketplace retail warehouses that you have mentioned in your opening remarks, and the platform economy.
Are there any ideas how to prevent such situations? Or, no common approach is in place and, alas, prevention is impossible as long as the special military operation is going on?
Vladimir Putin: Of course, there is. Well, while the special military operation is continuing, there is only one response: to enhance the air defence system.
And this is what I would like to draw your attention to. Why are we facing this situation? It’s because we proceeded from the idea that these are just civilian facilities, that they just cannot be targets of any attacks even in case of an armed conflict. In this respect, we were mistaken; unfortunately, our enemy sees things differently and has begun to strike civilian, purely civilian facilities.
As you can see, we were forced to strike back. And, by all appearance, our response turned out to be generally quite considerable for those who had opened that Pandora’s box.
Yet, we have another aspect. First, we must do it together, and our companies have started this work. I can assure you, we have got the result already, and it will continue. The night before last, there were attacks again – I already mentioned this in Kyrgyzstan; perhaps there were some last night as well, but I simply had no time to talk with the Ministry of Defence – the night before that, three oil refineries were attacked. All the attacks were repelled.
The companies joined the effort and began investing money in the defence of their enterprises. It is already producing the necessary results and effect. We will continue to do it. This will come in handy in the future. It always creates certain conditions and security guarantees.
Repair works are ongoing, too. Yesterday, the Minister of Energy reported that there is still about 10 percent of repair works left to be performed at 10 percent of the enterprises. But even the enterprises… I have met with our leading companies; oil prices have risen, and it is now profitable to export crude oil. What is its price now? I think US$95 per barrel of Brent; it is more profitable to export crude oil than to process it in the country. Still, oil companies do have a sense of responsibility; I reiterate the repair works are being carried out quickly enough. I think the remaining 10 percent will be restored in the near future.
Kirill Tokarev: Thank you.
As a follow-up: should Russians get used to regular fuel shortages, or not? That’s the first question. And I can’t help but ask, since you said there’s only one method — developing air defence — and one can’t argue with that either. Why was it necessary…
Vladimir Putin: There’s a second one.
Kirill Tokarev: Right.
Vladimir Putin: To launch retaliatory strikes so that they do not dare to harm us, that’s all.
Kirill Tokarev: But then why was the Executive Order on the Protection of Critical Infrastructure issued? You said in Bishkek that nationalisation, nationalising assets is out of the question. That wouldn’t help, and it’s basically impossible. But then what’s the point? Are there any specific offenders who are not meeting their obligations, or are there some systemic problems? Because, I’ll admit again, this is a very serious concern for businesses. There are few concrete criteria for timeliness, adequacy, and so on. I ask you to respond to the business community.
Vladimir Putin: Actually, the business community knows everything perfectly well; I meet with them regularly. You’re, as they say, banging your head against an open door. This is related to only one thing. You say: everyone knows their obligations. But no one had any — to protect their oil and gas enterprises. There were no obligations for enterprises to protect themselves or to spend money on air defence systems. There were none. This has nothing to do with any plans for nationalisation. What does that have to do with it? Nothing at all. The state didn’t even think about nationalising anything.
We asked our colleagues, in this case those from the oil and gas sector, to take care of their enterprises’ protection. There were no such obligations. Given this executive order, such obligations have emerged.
I want to note, and my colleagues… This is a considerable amount of money, you see. Well, I’ll say this: only one of our large companies — I spoke with them yesterday and the day before yesterday — we are talking about tens of billions of rubles. They are investing their money in purchasing the necessary equipment and training specialists to protect their enterprises. That’s what we are talking about. That, and only that, is the meaning and purpose of the executive order you mentioned.
Kirill Tokarev: Do I understand this correctly — we shouldn’t get used to regular fuel shortages once we’re working with air defence systems and carrying out strikes, and the executive order should work as intended?
Vladimir Putin: We must be prepared for anything, and only our readiness for everything will make it clear to everyone who wants to harm us that they’d better not.
Kirill Tokarev: Thank you.
Mr Uchral, I have a question for you regarding the civilian fuel and energy sector.
My question is: how will energy cooperation with Russia continue, given that, as far as we know, you are successfully building your own oil refinery?
Thank you.
Nyam-Osoryn Uchral: Yes, thanks to an intergovernmental agreement, we have imported oil at preferential rates for many years. We use around 3 million tonnes per year, of which 90 percent is Russian imports. The attacks on Russian oil refineries have seriously affected our country. Despite the challenging domestic situation, the Russian Federation and the Russian people continue to supply fuel to us, and we really appreciate it.
Of course, we have started building our own oil refinery. The plan is to launch it before 2029, but even after it’s launched, this oil refinery will not be able to cover 100 percent of our demand and we will still need imported oil. Coal exports are growing every year, and next year we expect to export 120 million tonnes of coal. New mining sector enterprises are under construction as well, including ore processing and aluminium processing facilities. We are also building processing plants for the agricultural sector. All these projects will require fuel and lubricants.
Consequently, we currently use 3 million tonnes of fuel per year, an amount that may increase to 4 million next year. We expect that our own oil refinery will be able to cover 50 percent of our demand; however, the demand for fuel for the Mongolian economy will still keep growing. Therefore, it is our priority to expand fuel cooperation with the Russian Federation.
Mongolia is a country with a lot of sunshine. We have sunny days for most of the year. Therefore, recently, we have also considered green energy, such as wind energy, as a priority. Nevertheless, we still expect that the demand for fuel and lubricants from Russia will continue to grow, expanding our energy cooperation.
Our peoples have a long history of friendship. On behalf of the government, we want to thank Russia for its assistance.
Kirill Tokarev: Mr President, we began our discussion about the situation with the Russian budget. I hope we are not done yet, of course, we still have some time to talk, but I would like to return to the budget – or rather, to how it is replenished, in particular to one practice that I am sure many of you are familiar with: voluntary levies on business. There is a clear –
Vladimir Putin: No, I object. There are no levies.
Kirill Tokarev: Voluntary donations.
Vladimir Putin: There are voluntary contributions. These are two completely different things.
Excuse me for interrupting, but this is genuinely their initiative; these are not levies. I met with representatives of our business community. People stood up, completely unexpectedly, I must say, and offered to make a certain contribution. You know, traditionally we have had mixed attitudes towards business, shall we say. People stood up and said: “We work in this country, we are citizens of this country, we have accumulated considerable personal wealth, and businesses feel confident, despite all the challenges. We want to contribute, in the current circumstances, to economic growth and social support” – which is the most important thing. This primarily concerns education, healthcare, and some other areas of government activity.
And in general, we did not ask for anything, nor did we orchestrate this situation in any way. I am telling you exactly as it happened. These contributions went directly to the account of the Finance Ministry, which distributes these funds, I repeat, primarily for social needs.
I want to thank Russian businesses, including my colleagues sitting here, for this initiative. Thank you very much.
Kirill Tokarev: Mr. President, Perhaps you could lift the veil of secrecy, if you have any figures at hand – how many such conscientious business leaders there were, and what the volumes were? You are absolutely right, levies, even if they are voluntary, are by definition voluntary‑compulsory, but those were contributions.
Vladimir Putin: Siluanov will return from the United States – you mentioned developing relations with the United States. Our finance minister – I am not sure if he has returned yet, he was at the G20 – he can give you the exact figures if he sees fit. I will not press him on that. But we are talking about hundreds of billions of rubles.
Kirill Tokarev: Mr President, I understand that our session and the forum itself are primarily dedicated to the development of the Far East and the country as a whole. But I cannot help but ask you about the special military operation.
Of course, I listened to your remarks – or rather, your responses to my colleagues in Bishkek. You described the situation on the line of contact, and in the special military operation as a whole, in great detail. If you have anything to add – after all, a lot can change in just a few days – I would ask you to do so.
And of course, I cannot help, excuse me… You know, like with those deposits, there are topics that keep resurfacing in the media, – some credible, some part of an information war, and so on. I cannot help but ask you once again about whether mobilisation is on the horizon.
I will allow myself to quote you (when else would one get the opportunity from a platform like this?) “This is complete nonsense. It is an information attack against Russia.”
But do we really have enough fighters? Do you foresee mobilisation? If so, under what scenario?
Vladimir Putin: There is no such scenario as of today that would require a mobilisation. This is an information attack on behalf of the enemy on the eve of the elections to the State Duma in an attempt to influence their results. It is simply a deliberately orchestrated information operation.
Our people, as we know, are coming forward and voluntarily signing contracts. Unlike what is happening in Ukraine – as we know, we see it every day on television and online – where people are being rounded up like stray dogs and forcibly dragged to the front.
Therefore, the enemy’s combat readiness and motivation are extremely low, while desertion has reached staggering proportions. Officially, over 300,000 cases of desertion are being investigated, but the real figure is, in my view, at least half a million. If over 300,000 are being officially prosecuted for desertion, what does that tell you?
Warfare is a gruelling and demanding undertaking, and inevitably comes with its share of challenges. We are addressing them.
We have no shortage of military personnel. In contrast, the enemy’s losses are increasing every month, with significantly more casualties than new recruits brought in through forced mobilisation. Even with those returning from hospitals, the net loss is 8,000–12,000 men per month. Every month. So the dynamics on the line of contact are clear to everyone. People can say what they will, but Russian troops are advancing every day. Every day, and on all sections of the line of contact: in some places faster, in others slower, and recently the pace of advance has been increasing.
But our forum is focused on the economy – not on the conflict in Ukraine. And our esteemed friend, the President of Indonesia, in his remarks, recalled a Russian proverb: One man cannot fight alone. He, I think, attached a purely economic meaning to it. I would like to continue that line of thought – also with a purely economic spin: together, we will win.
Kirill Tokarev: Mr President, participants in our plenary session.
I think this is the best moment to conclude our discussion – which we would, of course, be happy to continue, but everyone has their own schedule. It is time to get back to work. We wish every success to all participants of the Eastern Economic Forum, and to all those with whom we work day in, day out for the benefit of their countries and Russia.
Thank you.
Vladimir Putin: And I would also like to thank our moderator, on behalf of all the participants in our discussion – thank you.