The 7th Eastern Economic Forum (EEF), a vital platform for entrepreneurs eyeing the vast opportunities in Russia’s Far East (RFE), was recently hosted by Russia in Vladivostok. The event signals significant opportunities for investment, particularly for key players such as China, South Korea, Japan, and India. This article explores the background, objectives, and outcomes of this strategic forum.
About the Eastern Economic Forum
Established in 2015, the EEF aims to attract foreign investments into Russia’s RFE. Providing a vivid display of the region’s economic potential, investor-friendly conditions, and myriad opportunities – the forum has seen significant growth in the recent years. The number of agreements signed during the EEF shot up from 217 in 2017 to 380 in 2021, amounting to a staggering 3.6 trillion roubles. These pacts mainly revolve around infrastructure, transportation, mineral excavation, construction, industry, and agriculture ventures.
Key Players in the Eastern Economic Forum
Major economies like China, South Korea, Japan, and India constitute the leading investors in the region. China, being the primary investor, accounts for 90% of total investments, leveraging the platform to advance its Belt and Road Initiative (BRI) and the Polar Sea Route in the RFE.
Russia’s Strategic Objectives with the EEF
Russia seeks to integrate itself with Asian trading routes by developing the RFE strategically. Its modernization efforts aim to attract more investments, particularly from China and other Asian powers, helping it navigate through economic crises and international sanctions.
The Significance of Russia’s Far East
Covering one-third of Russia’s territory, the RFE is replete with natural resources like fish, oil, natural gas, wood, diamonds, and other minerals. This resource-rich region contributes significantly to Russia’s GDP, despite the logistical challenges presented by the low population density in the area. Geographically, the RFE serves as a strategic gateway into Asia.
India’s Involvement in the Eastern Economic Forum
India envisages a larger role for itself in the RFE, expressing readiness to expand trade, connectivity, and investments during the forum. With keen interests in sectors such as energy, healthcare, tourism, diamond industry, and the Arctic among others, India has also offered a USD 1 billion line of credit for infrastructure development in the region.
India’s Balancing Act with the EEF and IPEF
While the EEF is seen as a budding Anti-Sanctions Group – comprising countries like Myanmar, Armenia, Russia, and China – India maintains its interest in both the EEF and the U.S.-led Indo-Pacific Economic Framework (IPEF). Despite western-imposed sanctions on Russia, India continues to invest in the EEF while also pledging support to three of the four pillars in the IPEF. Being active in both platforms allows India to strengthen its presence in the Indo-Pacific region without necessarily joining China-led Regional Comprehensive Economic Partnership or other similar regional alliances.
Examining India’s International Economic Alliances
In the context of the 2015 UPSC question on India’s membership in various economic alliances, it’s important to note that India isn’t a member of the Asia-Pacific Economic Cooperation or the Association of South-East Asian Nations. It is, however, a member of the East Asia Summit, which promotes intergovernmental cooperation among its 18 member states on significant political, security, and economic challenges facing the Indo-Pacific region.
Impact of Indo-US and Indo-Russian Defense Deals
The defense deals between India and the US, as well as those with Russia, play a crucial role in maintaining stability in the Indo-Pacific region. These agreements not only strengthen India’s defense capabilities but also contribute to regional peace and stability by asserting India’s strategic presence. As such, both sets of deals hold high significance for India’s international relations and defense strategy.