Global Governance
The Far East and the Arctic in a New Global Context
Vladivostok, Far Eastern Federal University, Building B, Conference Hall No. 6
List of speakers

On Thursday, September 2, within the framework of the Eastern Economic Forum in Vladivostok, the Valdai Discussion Club held a special session, titled “Global Challenges and Opportunities for the Far East and the Arctic”.

Almost ten years ago, Russia declared the development of the Far East a national priority for the 21st century. Despite the complexity and multifaceted nature of this task, the "pivot to the East" policy is bearing fruit: it is not the first year that the pace of development of the region has outperformed the average for Russia. However, over the years, the world we live in has changed: there has been a rollback of globalisation, new geopolitical configurations are emerging, the world economy is beginning to transform under the influence of the “green” agenda, and the coronavirus pandemic has presented humanity with new social challenges. The Valdai Club session at the EEF-2021 was devoted to the opportunities and threats that the new global context creates for the Russian Far East and the Arctic.

Yuri Trutnev, Deputy Prime Minister of the Russian Federation and Presidential Plenipotentiary Envoy to the Far Eastern Federal District, announced in his speech some data regarding the economic development of the region. According to him, the growth rate of the gross regional product has doubled to 16%, investments in fixed assets exceed the national level by 39%, and the industrial production index in the Far Eastern Federal District is twice the national average. 417 new enterprises have been created, and the number of new jobs will equal roughly 84 thousand by the end of this year. With the total expenditures of the state for the development of the region equalling 81 billion rubles, budget revenues amounted to 123.1 billion rubles, despite the fact that the enterprises enjoyed targeted tax breaks. All this suggests that the development of the Far East can be regarded as a highly profitable project, Trutnev emphasized.

In turn, the challenges that arise in the changed world were outlined by Alexey Chekunkov, Minister for the Development of the Russian Far East and Arctic. The most important of these is climate change, with its economic and political implications. Climate change could become a new dogma in international relations and change the rules of the game, he said. There is a risk of a climate race, with new dividing lines emerging in the world. Thus, potentially catastrophic natural phenomena can be aggravated by shock international solutions.

However, the green agenda also opens up new opportunities, including for the Russian Far East. According to the minister, the region should become the centre of climate projects. The government is forming a package of proposals for the creation of a free ecological zone "Ecoport Far East", which will allow the region to become, in the future, a "world climate capital".

Recently, the development of the Far East has been considered at the state level in conjunction with the development of the Russian Arctic. Based on the Far Eastern experience, the Russian government is creating a preferential tax system for the Arctic region, Yuri Trutnev said. The central theme here is the use of the Northern Sea Route, which is becoming an increasingly important transport corridor. 

According to Vyacheslav Ruksha, Deputy Director of ROSATOM, today five times more cargo is transported along the Northern Sea Route than in Soviet times, and for the most part these are industrial products, not essential goods being delivered to residents of the region. The main task today is the transition to regular year-round navigation. 

According to Glenn Diesen, professor at the University of Southeast Norway, the Northern Sea Route, in providing a shorter connection between Europe, Russia and the countries of Asia, will open a new page in the development of both the region as a whole and Russia. At the same time, the development of this transport route is associated with certain challenges. This is the competition that it will create for the Suez Canal, and the US sanctions against Beijing and Moscow have slowed down the processes of interaction on this track, the expert noted. 

Kevin Rudd, former Australian Prime Minister and President of the Asia Society Policy Institute, pointed to the need for extreme caution in handling this vulnerable region, citing the Australian experience in Antarctica.

Atsushi Sunami, President of the Sasakawa Peace Foundation, highlighted the opportunities for international cooperation opened up by the development of the Northern Sea Route. According to him, Japan, as the Asian country closest to the Arctic, is interested in cooperation with Russia in the development of the region. An important role here is played by cooperation through legal instruments, particularly the Arctic Council, he stressed.