In Vladivostok, the Russian Far East rises – Pepe Escobar

In Vladivostok this week, the ‘Russian Far East’ was on full, glorious display. Russia, China, India, and the Global South were all there to contribute to this trade, investment, infrastructure, transportation, and institutional renaissance.

by Pepe Escobar

VLADIVOSTOK – Russian President Vladimir Putin opened and closed his quite detailed address to the Eastern Economic Forum in Vladivostok with a resounding message: “The Far East is Russia’s strategic priority for the entire 21st century.”

And that’s exactly the feeling one would have prior to the address, interacting with business executives mingling across the stunning forum grounds at the Far Eastern Federal University (opened only 11 years ago), with the backdrop of the more than four-kilometer-long suspension bridge to Russky Island across the Eastern Bosphorus strait.

The development possibilities of what is in effect Russian Asia, and one of the key nodes of Asia-Pacific, are literally mind-boggling. Data from the Ministry for the Development of the Russian Far East and the Arctic – confirmed by several of the most eye-catching panels during the Forum – list a whopping 2,800 investment projects underway, 646 of which are already up and running, complete with the creation of several international Advanced Special Economic Zones (ASEZ) and the expansion of the Free Port of Vladivostok, home to several hundred small and midsize enterprises (SMEs).

All that goes way beyond Russia’s “pivot to the East” which was announced by Putin in 2012, two years before the Maidan events in Kiev. For the rest of the planet, not to mention the collective West, it is impossible to understand the Russian Far East magic without being on the spot – starting with Vladivostok, the charming, unofficial capital of the Far East, with its gorgeous hills, striking architecture, verdant islands, sandy bays and of course the terminal of the legendary Trans-Siberian Railway.

What Global South visitors did experience – the collective west was virtually absent from the Forum – was a work in progress in sustainable development: a sovereign state setting the tone in terms of integrating large swathes of its territory to the new, emerging, polycentric geoeconomic era. Delegations from ASEAN (Laos, Myanmar, Philippines) and the Arab world, not to mention India and China, totally understood the picture.

In his speech, Putin stressed how the rate of investment in the Far East is three times the Russian region average; how the Far East is only 35 percent explored, with unlimited potential for natural resource industries; how the Power of Siberia and Sakhalin-Khabarovsk-Vladivostok gas pipelines will be connected; and how by 2030, liquified natural gas (LNG) production in the Russian Arctic will triple.

In a broader context, Putin made clear that “the global economy has changed and continues to change; the West, with its own hands, is destroying the system of trade and finance that it itself created.” It is no wonder then that Russia’s trade turnover with Asia-Pacific grew by 13.7 percent in 2022 and by another 18.3 percent in just the first half of 2023.

Cue to Presidential Business Rights Commissioner Boris Titov showing how this reorientation away from the “static” West is inevitable. Although Western economies are well-developed, they are already “too heavily invested and sluggish,” says Titov:

“In the East, on the other hand, everything is booming, moving forward rapidly, developing rapidly. And this applies not only to China, India, and Indonesia, but also to many other countries. They are the center of development today, not Europe, our main consumers of energy are there, finally.”

It is quite impossible to do justice to the enormous scope and absorbing discussions featured in the major panels in Vladivostok. Here is just a taste of the key themes…