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In 2025 the Forum is held under the motto “The Far East: Cooperation for Peace and Prosperity.” 

Taking part in the plenary session were Prime Minister of the Lao People's Democratic Republic Sonexay Siphandone, Prime Minister of Mongolia Gombojav Zandanshatar and Vice Chairperson of the Standing Committee of the National People's Congress Li Hongzhong. The day before, the President held bilateral meetings with each of the three officials.

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Plenary session moderator Maria Rybakova: Mr Putin, honourable guests, good afternoon.

I also extend my greetings to the participants of the forum, the audience and the early risers in the western part of our country who have woken up to watch our plenary session.

Our guests of honour will deliver their statements soon. But first, if you don’t mind, Mr Putin, I would like to steal the spotlight for a moment. Just a couple of minutes to say a few words of explanation.

I should say straight away: I am not an economist. I am a news presenter with a legal education who lives in Moscow. In short, I am oriented towards the humanities. But I also go shopping quite often, and I am someone who pays attention to prices, which, frankly, sometimes surprise me. I really know very little about economics, and you know, sometimes when you are looking for answers, you go on a video platform – which, as you know, now runs a bit slowly in Russia – and there, economists tell you that everything is bad: inflation is rising and the budget has been stretched to the limit. Then you go on another platform, and there, other economists tell you that everything is fine, everything is great, that there are breakthroughs ahead, we will beat everyone, and so on.

Like any other Russian citizen, I have a question: Mr Putin, which of these economists should we trust?

President of Russia Vladimir Putin: You know, I have already answered questions of this kind. Don't take anyone at their word. The truth is, you should proceed from your own experience, rather than seeking the opinions of those who like to voice their views online. Instead, I suggest you consult the opinions of experts if you truly want to get to the essence of the issue that concerns you. I am not saying anything revolutionary here.

But even among specialists, views differ. The questions you have raised only appear simple on the surface. Take prices, for example. Rising prices are, essentially, inflation. The Central Bank is working to curb this inflation and bring it back to the well-known and necessary target of no more than 4–5 percent. But this requires keeping the key rate high, which raises concerns for those engaged in real production. Many people here in this hall will no doubt say: “This is unacceptable, it is impossible, the key rate must be sharply reduced.” But if that happens, prices will only rise further.

So the only thing I can say is this: I want to assure you that Russia’s financial authorities – the Government of the Russian Federation and the Central Bank – are acting professionally. We have always, and I want to stress this, always proceeded from the principle that a stable macroeconomic policy is the foundation for developing the Russian economy and, consequently, the social sphere. We have pursued this course for many years, at least a decade and a half, and it has consistently delivered positive results, creating the conditions for the country to move forward. I am confident this will be the case again.

Maria Rybakova: Thank you very much.

Perhaps my introduction was a little scattered, but the main point I wanted to make is this: today I would like us to talk about the economy not in abstract, highbrow terms, not about institutional economics, but about the economy that matters to ordinary people in Vladivostok, to a typical family. That is the kind of economy that concerns me, and people like me.

Let me briefly explain how we will proceed, what the format will be. I think everyone here is familiar with it. First, we will have the official part, with speeches by our distinguished guests, including Mr Putin. After that, we will move on to the Q&A session. I very much hope it will be a real discussion. I am not sure how it will unfold, because it’s not easy to argue with Mr Putin, but I will do my best.

I will now give the floor to the president of the country hosting this forum. Mr Putin, you have the floor.

Vladimir Putin: Mr Sonexay Siphandone, Mr Zandanshatar, Mr Li Hongzhong, ladies and gentlemen,

Allow me first to address the Russian part of the audience. I would ask you to extend a warm welcome to all our international guests. For my part, I wish to express my gratitude to our foreign colleagues for coming here, showing an interest in working with us, and devoting their valuable time to this forum.

Russia and Vladivostok once again are hosting participants and guests of the Eastern Economic Forum, with representatives from more than seventy countries around the world.

This year, the forum is being held for the tenth time. Let me remind you that the very idea of establishing it coincided with the launch of a new stage in the development of the Russian Far East. This major undertaking is aimed at creating broad opportunities for citizens, for young people, above all for businesses, to fully unlock the resource, industrial and logistical potential of this strategically important region of Russia, and to improve the quality of life for its residents.

Today’s anniversary forum is not only an opportunity to take stock of the joint efforts of government bodies, entrepreneurs and public organisations, but also to outline the next steps – our long-term plans for the Far East. These plans concern strengthening its role both in Russia’s national economy and in international relations, above all in the rapidly growing Asia-Pacific region.

As you know, the development of the Far East and Siberia has been designated as Russia’s national priority for the entire 21st century. This was announced in the Address to the Federal Assembly at the end of 2013.

Subsequently, the legal framework was formed and updated, and a whole range of instruments to support business was introduced, including advanced special economic zones, the Free Port of Vladivostok regime, preferential arrangements for the Kuril Islands, and the establishment of a special administrative district on Russky Island.

Ambitious plans have been rolled out to strengthen transport, energy and utilities infrastructure. Decisions have been made to support housing construction, renovation, and the development of social facilities: schools, kindergartens, clinics and hospitals, and sports complexes.

All these measures are united within the large-scale State Programme for the Development of the Far East. It sets ambitious targets for accelerated economic and technological growth and for improving the wellbeing of the population across the Far Eastern regions of the Russian Federation.

These efforts are delivering results. In recent years, the Far East has taken a leading position across many key indicators – first and foremost economic ones – outpacing Russia’s overall growth rates.

Over the past 10 years, the gross regional product of the Far East has increased more than 2.5 times, from 4 trillion rubles to 11 trillion.

During this time, 20 trillion rubles were invested in the fixed capital of Far Eastern companies and enterprises. A quarter of this amount was channelled into projects with state support in such sectors as mining, oil and gas chemistry, construction and others.

Let me name the leading regions in terms of fixed capital investment over these 10 years: Yakutia, with 4.5 trillion rubles, Amur Region, with 4 trillion rubles, and Sakhalin Region, with 2.6 trillion rubles. Together, these three account for 55 percent of all investment in the Far Eastern Federal District.

The investment dynamics in the Far Eastern regions are such that, in real terms, their volume last year was double that of 10 years ago. For comparison, across Russia as a whole the figure was 1.5 times higher. That, too, is a good result. But still, the Far East has done better.

Per capita, investment in the Far East today is twice as high as the national average.

What does this mean? It means that not only is a modern industrial base being formed, but in fact a new industrial map of the region is emerging. Thousands of new growth points have already appeared, including world-class enterprises such as the Baimsky mining and processing plant in Chukotka, the Udokan Copper project in the Trans-Baikal Territory, the gas processing plant and petrochemical complex in the Amur Region, the Nakhodka mineral fertiliser plant, the Zvezda shipbuilding complex in Primorye, the hydrometallurgical plant in the Khabarovsk Territory, and many others.

The growth of business and entrepreneurial activity, along with the expansion of economic opportunities in the Far East, forms the foundation for the region’s future development. It is important to maintain steady progress in its traditional sectors, in areas that are already on an upward trajectory, to develop infrastructure and logistics links, to ensure reliable supplies of affordable and clean energy, and, of course, resources.

I should also note that the Far East’s resource base and mineral extraction are expanding. Over the past decade, coal and gold production in the region has grown almost 1.7 times. This has been made possible in part by the declarative principle of subsoil licensing, which has enabled greater private capital involvement in geological exploration, significantly increasing the number of newly discovered deposits, including major ones such as the Lugokan gold and copper deposit in the Trans-Baikal Territory and the Roman gold and silver deposit in Yakutia.

I will separately touch on the issue of rare earth metals, which are used in high-tech industries, instrument-making, nuclear technology, electronics and other spheres.

These resources are often accumulated in dumps during the development of deposits, including here in the Far East. There is a system for registering these resources. They can be extracted and effectively used with the development of new technologies. I spoke about the launch of such programmes at the St Petersburg International Economic Forum.

At the same time, we should regularly review these valuable components throughout the production chain, including at the stage of their reprocessing and export in the form of concentrates. In addition, we must introduce advanced technologies for enriching and processing rare and rare earth metal ores. We must also encourage demand for them at new industrial facilities in Russia.

Some months ago, in February, we agreed to approve a long-term plan for the development of the rare earth metals industry. I would like the Government of the Russian Federation to do this no later than November this year.

Next, a meeting on the development of the energy complex of the Far East was held on the eve of this plenary session. Many of you have likely taken notice of it. It is clear that the demand for electricity in the region will increase with the development of the economy and the social sphere. Consequently, we must plan the construction of energy facilities so that they meet the growing demands of businesses, cities and villages, and the people. The focus is on the expansion of gas and modern coal generation, as well as using the huge potential of hydropower generation.

The hydroelectric power plants on rivers in the Far East are a low-impact electricity source, and new ones must be built. Their construction implies modern engineering and technological solutions, and our leading company in this field, RusHydro, has the necessary experience and groundwork. However, it is obvious that the development of hydropower generation calls for major investments.

Relevant instructions have been issued. I hope that the Government and our colleagues in the regions will continue to give special attention to the development of small and large hydroelectric power plants. I would like to emphasise that we are not only talking about the economic aspect. Responsible water use, maintenance of perennial runoff, and flood prevention are integral parts of the development of hydropower generation that have a direct impact on the environment, agriculture and the safety of cities and towns.

Rivers in the Far East are also natural transport arteries connecting territories and ensuring deliveries to cities and towns within the framework of the northern supply.

In this context, a separate issue is logistics. In recent years, the load on the transport system of the Far East has grown significantly. The region’s ties with foreign countries are being strengthened. All of this requires the upgrading of road and rail arteries, the expansion of seaports and the creation of modern transport hubs with automated warehouses and digital cargo processing.

We will continue modernising the Eastern railway network – the BAM and the Trans-Siberian Railway. By 2032, their carrying capacity should be one and a half times higher than at the beginning of this year.

It will also be necessary to further expand the railway links to the seaports of the Far East, which are developing dynamically, primarily through private investment. Over the past 10 years, port capacity in the region has effectively doubled. Today, it stands at almost 380 million tonnes of cargo per year.

According to the current federal project, the Far Eastern ports’ capacity should increase by a further 115 million tonnes of cargo per year by 2030.

In the Far East, transport bridges to China have already been built: the Nizhne-Leninskoye-Tongjiang and Blagoveshchensk-Heihe bridges. Plans also include the construction of new bridges, including one to the Democratic People’s Republic of Korea across the Tumannaya River, which is scheduled to open next year. It is essential to actively develop transport and logistics hubs in the vicinity of these bridges to make full use of their capacity. In addition, border crossings are being modernised. This task has also been set, as it is of considerable importance: a single transport artery is not enough, and appropriate administrative logistics are required.

I would also add that airports in every region of the Far East are being upgraded. They now handle more than 14 million passengers a year, including tourists, who are increasingly visiting these remarkable and beautiful places.

In this context, I would like to note the initiative of VEB.RF. Master plans have been prepared for the development of twelve new all-season resorts in Primorye, Sakhalin and Kamchatka. This will allow the number of tourists visiting these regions to almost double over the next ten years.

I would also highlight such landmark developments as the restoration of flights between Vladivostok and Pyongyang following the COVID-19 pandemic, as well as the launch of direct air services between the capitals of Russia and the Democratic People’s Republic of Korea. The flight on this route took place at the end of July. A month earlier, direct train services between Moscow and Pyongyang were resumed. I am confident that these measures will contribute to the further rapprochement of our countries and the establishment of stronger ties.

Of course, a particularly significant topic for the Far East, for our entire country, and for the whole Eurasian continent is the development of the Trans-Arctic Transport Corridor. It runs from St Petersburg through Murmansk, Arkhangelsk, and the Northern Sea Route, all the way to Vladivostok.

We see that interest in this route is growing, both from Russian companies operating in the Arctic and from foreign carriers. And this is not just about individual, one-off shipments, but about forming a stable cargo base.

We will develop the Trans-Arctic Corridor.

We often speak about the Northern Sea Route. But if you have noticed, I specifically said – and continue to say – Trans-Arctic Corridor, because we have concluded that we need to operate on a larger scale, and that this artery must function as part of a complex system with all the territories adjoining the Northern Sea Route and their capacities.

So, this is a comprehensive system that should integrate maritime, rail and road transport. It will allow us to use the potential of our largest rivers, such as the Ob, Yenisei, and Lena. Everything must work as a single, unified system.

Our task is not only to establish reliable and safe sea routes in the Arctic and enable year-round operation of the Trans-Arctic Corridor. There is also work, as they say, onshore: developing communications and navigation, ship servicing systems, and emergency and rescue infrastructure. And, of course, this includes modernising seaports in the Arctic and the Far East.

Incidentally, just yesterday, the multimodal hub Artyom was opened here, in the Primorye Territory. It handles containers arriving both from abroad and from Russian regions, and it is expected to improve the efficiency of northern supply deliveries.

It is very important that similar modern transport and logistics centres develop in our country, that there are more and more of them, and that cargo delivery and handling become faster and more efficient. And I would like to emphasise that it is precisely at such points, in logistics hubs, that advanced technologies, including unmanned systems, should be applied.

Next, the Trans-Arctic Corridor must primarily operate in the interests of the domestic economy and our regions of the Far East, Siberia, and the Arctic, taking into account cooperation between them and opening new opportunities for business. Here, I would like to underline two potentially significant directions for development.

First, the creation of modern shipbuilding centres. They should be capable of producing the full range of vessels needed for the route, from tugs and supply ships to bulk carriers and ice-class gas carriers, as well as ultra-powerful icebreakers.

Second, to increase the efficiency and resilience of the Trans-Arctic Corridor, we need to provide direct access for cargo from Siberia and the Urals to Arctic maritime routes.

I ask my colleagues in the Government and the Russian Maritime Board to assess the feasibility of these proposals and provide their recommendations.

Back in the day, mechanisms that were advanced and innovative for our country, such as priority development areas (PDAs), gave a strong boost to economic growth and private initiative in the Far East.

As you may recall, the law on PDAs was adopted in late 2014, and the mechanism was launched in 2015. The goal was to create truly globally competitive environment for doing business in the Russian Far East. Therefore, we developed PDA arrangements based on the best business and investment climate practices, including from the Asia-Pacific region.

What benefits does this mechanism provide today? Our colleagues are well aware of them in general, but I would like to go over them for our guests. These are, first of all, low insurance premium rates (7.6 percent for 10 years). The federal revenue tax will be zero for five years. The regional revenue tax will amount to anywhere from zero to five percent in the first five years, and ten percent in the next five years. The subsidised tax rate on mineral extraction is provided. In addition, the PDAs provide for a free customs zone, as well as reimbursement of a portion of the expenses involved in building infrastructure and issuing low-interest loans to businesses.

The reason I am dwelling on the PDA terms in such great detail is because they are unique for business, and not only in our country, but in many other countries around the world as well, for our colleagues and friends from other countries.

PDAs have proven their effectiveness. They have helped launch numerous investment projects, systematically support entrepreneurs and companies at the most important stage during construction, setting up the production cycle, and reaching design capacity. In the Far East, 18 PDAs have been created employing over 300 residents, who have invested almost four trillion rubles and created 95,000 new jobs. The Government has made several decisions to expand the boundaries of specific PDAs to accommodate new projects.

Based on existing successful experience, I propose taking a radical step and, as the saying goes, seamlessly, while keeping the terms and conditions for the existing investors unchanged, launch a single preferential regime for business throughout, I emphasise, throughout the entire Russian Far East and the Arctic. This work must begin on January 1, 2027.

The task is to simplify the use of support measures for entrepreneurs, companies and their new projects. In other words, investors should have access to incentives wherever they take their money, in every Far Eastern or Arctic region, city and town.

I would like to point out that the launch of the single preferential regime will preserve all the terms extended to investors in priority development areas. They do not have to worry that anything will be changed spontaneously. This also concerns the residents of international priority development areas. This instrument stipulates even longer-term profit tax privileges and the so-called grandfather clause – not everyone in the hall knows what it is, so I will explain this term. This clause precludes any changes in the terms of operation for up to 15 years and stipulates an individual approach and support for each investor, including foreign companies.

The legal framework is ready, and international priority development areas will start operating in the Transbaikal Territory, the Amur Region, the Jewish Autonomous Region, and the Khabarovsk and Primorye territories on January 1, 2026. We invite all interested partners to take advantage of this opportunity.

Regarding the single preferential regime for the Far East, I would like to say this: the list of incentives, their precise parameters, deadlines and industry focus will be determined by the Government together with our colleagues in the Far Eastern entities of the federation. But there are some fundamental issues I would like to point out.

Using the results achieved in the mining and processing industries and solid infrastructure, we must start a new development stage in the Far East, shaping an economy of the future, radically improving living conditions in cities and towns, training in-demand professionals and launching high-tech projects. This is the essence of the new stage. We must turn the entire territory of the Far East into a hub for high-tech projects. It is a vast territory with a sparse population and large areas where people can be employed. We must use modern methods for the development of this territory.

National projects to ensure the country’s technological leadership have already been launched. On the basis of each of these, I instruct the Government to prepare and approve an appropriate development programme for the Far East and the Arctic by the end of the year.

For a technological breakthrough, a genuinely bold approach to regulation and the legal framework for business operations is required. These must give the green light to innovation, stimulate the development of cutting-edge solutions, and facilitate their implementation in pilot and subsequently serial production, as well as in the social sphere and everyday life.

For instance, an experimental legal regime is already in effect on Sakhalin. It allows for the accelerated testing of unmanned technologies. I instruct the Government to create conditions for their widespread application on agricultural lands, in environmental protection and natural resource management, as well as at industrial and logistics sites. Why should unmanned technology not be developed in such areas? There are none of the risks that might arise in densely populated regions of the country. Moreover, life itself demands the use of such technologies. Take, for example, forest fires that break out hundreds of kilometres away from the centres responsible for responding to them. Unmanned technology is perfectly suited for use in these vast areas.

There are other opportunities for applying modern technologies across these vast territories. This is precisely where they should be deployed. However, this requires a corresponding workforce. What must be done to ensure such a workforce? Conditions must be created so that people can live here, so that they want to live here. Social infrastructure must be developed, cultural facilities must be enhanced, and so on. Otherwise, there will be no workforce, and consequently, there will be no people capable of advancing these technologies. This is a comprehensive task.

It is evident that such solutions will be in demand not only on Sakhalin but also in other regions of the Far East, including the Amur Region, the Trans-Baikal Territory, Chukotka, and so on.

In this regard, I consider it possible to extend the experimental legal regime for unmanned systems to all Far Eastern regions and expand it primarily to include such areas as the use of digital platforms, artificial intelligence, and data exchange.

In June, at the St Petersburg Economic Forum, I spoke about the importance of leveraging the advantages of electronic marketplaces. Within the framework of the experimental legal regime, I propose utilising the infrastructure of domestic information platforms for state and municipal procurement in the field of education.

There is more to it. The Russian Far East must become an advanced digital development region, especially in data circulation. Of course, this circulation should take into account matters of confidentiality and security. We talk about this all the time. We will definitely revisit this topic at the artificial intelligence forum, which will take place closer to the year end. I look forward to the Government preparing corresponding proposals.

Next up, to develop and master technologies and to establish modern production facilities, at least 100 industrial, business and technology parks with the proper areas and utilities will have become operational in Russia by 2030. At least ten such parks will need to be created in the Russian Far East and the Arctic regions. I am confident that their state-of-the-art infrastructure and capabilities will be popular with the start-up companies that are implementing promising projects and, among other things, planning to manufacture products that are designed to replace foreign analogues, including construction materials, and medical and transport equipment, to name a few.

In order to promote the development of domestic production facilities, conditions must be met for a wider use of the so-called offset contracts, when investments in new factories, workshops, or enterprises are guaranteed by state orders. It is likewise important to expand the practice of interregional offset contracts, under which production facilities open in one constituent entity of the Federation, and products manufactured under guaranteed orders are shipped to more than one region.

Financing innovative ideas and technological projects is a separate issue. Private investors and venture investment have a greater role to play under these arrangements than the state. The Voskhod Fund, which has supported about 40 companies in robotics, medicine, and space technologies, is a compelling example to back up this point.

I am asking our colleagues from the Government to carefully review the experience of this Fund and to help scale up its activities to include our technological leadership projects. Please focus on this.

In general, I believe a transparent, modern, and effective financial ecosystem must be created in the Far East. The Eastern Exchange, which is, for all intents and purposes, a Far Eastern stock exchange, is operational. I suggest working out plans for further expanding it, including financial channels, regulatory framework, and incentives for placing corporate shares.

Colleagues, developing the Far East and the Arctic, and building the economy of the future should improve the well-being of the people, increase their incomes, and lead to structural changes in employment in favour of high-skilled and well-paying jobs. This is the underlying logic and the core meaning of the strategy that we are implementing in these regions and throughout the country. To reiterate, the Russian economy must become an economy of high wages. This is not an empty phrase, not some kind of populist rhetoric. There is economic sense to it.

Over the past ten years, the average salary in the Far East has increased by 2.5 times. As of the end of last year, it exceeded 100,000 rubles per month in nominal value. The unemployment rate in the region went down from 7 percent to 2.4 percent. The poverty rate is down across Far Eastern constituent entities of the Federation. Indeed, in most of them it is still higher than the national average, and there is room for improvement. However, overall, I emphasise, the dynamics are good and positive. On average, the poverty level in Russia decreased from 11.3 percent to 7.2 percent from 2014 to 2024. Among the Far Eastern regions, poverty is below the national average in some regions, namely, 5.3 percent on Sakhalin, 5.9 percent in the Magadan Region, and 4.4 percent in Chukotka.

We remember how, amid economic headwinds and challenges in the social sphere in the late 1990s, people began to leave the Far East. It was a truly threatening trend, and reversing it was a challenge. But we are getting there. Gradually, we are getting there.

I will give you some telling figures. Since 2014, the migration outflow in the Far East amounted to 211,000 people over five years, but it decreased to 109,000 people in the next five years, which is also a lot. But it was down almost by half. Moreover, 2024 saw a migration influx, albeit a small one at 24,000 people. Not many, indeed, but the very fact of trend reversing was a major achievement.

Particularly important is the fact that young people from all over the country headed to the Far East. Since 2015, an influx of young people aged 20 to 24 has been noted for nine years in a row. Last year alone, it more than doubled compared to the year before that.

This means that you can go there to get an interesting profession, find a well-paying job, settle down, solve housing issues, start a family, and raise children. The future of our country is being created in the Far East. Young people sense it, see it, and react accordingly.

We will continue to improve the system of general and higher education in the region, encouraging it to adjust to the personnel demands of enterprises and organisations, and to take into account potential changes in the employment market due to the development of new forward-looking economic sectors.

We have agreed to open university campuses in Yuzhno-Sakhalinsk, Petropavlovsk-Kamchatsky, Yakutsk, Khabarovsk, Blagoveshchensk, Ulan-Ude and Chita, to build the second phase of the Far Eastern Federal University campus and to establish world-class campuses in the Arctic, namely Murmansk and Arkhangelsk. In other words, we will create all the necessary conditions for receiving a quality modern education.

Of course, it is necessary to support not only those who plan to move to the region but also those who were born and are living and working here, making the Far East and consequently, the whole of Russia stronger and better.

We must ensure a sustainable improvement in the standards of living for people and families in the Far East. This is a crucial aspect and the basis for creating an economy of the future.

Regarding housing affordability, urban development, the environment and the social sphere, the standards in the Far Eastern regions must rise above the country’s average within a decade.

As you know, master plans for 22 Far Eastern cities and agglomerations have been prepared with this aim in view. They include the economic development of residential areas and are designed to create a modern and truly comfortable living environment, with renovated housing and utilities, developed public spaces, parks, boulevards, children’s playgrounds and sports grounds, and a modernised social sphere.

These master plans are being implemented. To date, over 160 facilities have been built in accordance with them, including an embankment and a children’s technology park in Komsomolsk-on-Amur, a stadium in Ulan-Ude, and a roofed skating rink in Nakhodka. A shipyard has been modernised, an embankment has been built and a park has been laid out in Yakutsk. The construction of the Kamchatka Region Hospital has been completed.

It is clear that the successful implementation of these master plans depends on interaction between local authorities, including proper regard for governance elements in the urban agglomerations that comprise several municipal areas.

I would like to ask the Government, working jointly with local colleagues, to test the mechanisms of such interaction in the Vladivostok City Agglomeration, with the results of this experience formalised by 2030.

By the end of this decade, within the framework of the Far Eastern and Arctic master plans, more than 600 facilities are to be put into service. In their development, it is important to apply advanced solutions, both in design and in construction.

Next, for the financing of the master plans, we have agreed to create special sections in the national projects specifically dedicated to the Far East and the Arctic, and to allocate 5 percent of the expenditures of relevant state programmes in the social sphere, infrastructure and other areas to master plan initiatives.

I ask the Ministry of Finance to note that these decisions have been made. Yes, there is work to be done, and all of these programmes need to be carefully reviewed. But I ask that 5 percent be allocated here unconditionally, to address the tasks facing the region.

In addition, at the last Forum, I instructed that a separate limit of treasury infrastructure loans be allocated for the master plans of Far Eastern and Arctic cities. By 2030, 100 billion rubles will be directed to these purposes, primarily for the construction and upgrading of infrastructure.

Projects from the regions are already being selected locally and reviewed by the Government. I want to emphasise that resources for them are allocated to the Far Eastern regions in addition to the existing instruments of the so-called infrastructure menu. These include funds from the National Wealth Fund, the issuance of infrastructure bonds, and financing under the Modernisation of Utilities Infrastructure and Housing federal projects. All of this is an important contribution to the development of housing construction in the Far East and to improving housing availability for Far Eastern families.

If in 2015 the region completed the construction of 2.9 million square metres of housing, last year the figure stood at 4.7 million. The Far Eastern Quarter mechanism, with incentives for developers, played a role here. And, of course, the Far Eastern and Arctic mortgage programme with a low rate of 2 percent – originally covering young families, families with children, and participants in the Far Eastern and Arctic Hectare programmes – also contributed.

More than 165,000 loans have already been issued under this mortgage programme. We have extended it until 2030, and expanded it to include participants in the special military operation, employees of defence industry enterprises, doctors, and education workers. Specific age limits have been applied to these categories.

I would like to make an important clarification. The opportunity to receive a mortgage at a 2 percent rate should be available not only to teachers, but, I emphasise, to all employees of state and municipal educational institutions in the Far East and the Arctic. I ask the Government to make the necessary amendments to the regulatory framework. These are funds that, even under current conditions, are quite manageable, and I ask that this be done.

I also propose using the Far Eastern and Arctic mortgage programme for the secondary housing market as well, not just primary market, but specifically in those urban areas without blocks of flats, where developers do not offer anything. Of course, the year of the construction and the condition of the buildings will need to be assessed before a mortgage loan is issued. I am asking our colleagues to have a careful look into that.

We have discussed this in relation to other regions. Subsidised arrangements must definitely be allowed on the secondary market. Well, what if no new housing is built there? Please work it through. This decision must be made.

The housing issue is the key to improving the demographic situation. Families in the Far East are paid one million rubles for the third baby, rather than 450,000 rubles as in the rest of the country, which makes perfect sense. All of that together produces the result that I just talked about. Young people are coming here.

Initially, this support mechanism was introduced in the Primorye Territory, and then in seven more regions. Twenty-five percent more third and subsequent babies are born into Far Eastern families than the national average. It is also a telling indicator. Since this payment of one million rubles is used to pay off mortgage loans, I think the right thing to do is to make the Far Eastern and Arctic mortgage programme available to all families in the region with three or more children. To reiterate, to all large families, regardless of the age of the parents. We had a cap of 35 years. But now women give birth at 35, 40, and even older. God bless them. The more babies we have, the better.

Of course, Far Eastern families, families with children should be provided with social facilities such as outpatient clinics, kindergartens, schools, and hospitals.

Building such facilities at the expense of businesses, or more precisely, strategic partners that carry out major investment projects and conduct large-scale production operations in a particular population centre is a popular approach in remote Far Eastern urban and rural areas.

As a reminder, last year we agreed to create such a convenient mechanism, so that businesses could use their own funds to build social facilities when they are building their production facilities. They would build social facilities concurrently and then transfer them to regional or municipal authorities and have their expenses reimbursed. How will the reimbursement work? By way of future tax deductions when an enterprise becomes operational.

I would like the Government and the VEB.RF corporation – Mr Shuvalov, please note that – launch this tool widely and use budget resources that are set aside to cover investment tax deductions. Without a doubt, public-private partnerships and concessions should be used widely as well.

In this regard, I count on VEB’s energetic participation in further improving concession and PPP mechanisms. I am talking about creating a national standard and financing model in this area, which should ensure transparency and a common understanding of the terms of public/private partnership in socially important projects. This is a simple mechanism, and there is nothing important here. The budget will not be overly burdened by it. It is a quite feasible project.

Colleagues,

The Russian Far East and the Asia-Pacific region as a whole is an area of dynamic change and burgeoning growth. We should maintain high rates of positive change, improve the structure of the domestic economy, increase the technological efficiency of all spheres of life, and more effectively use the resource, production, logistics, and research potential that the Far Eastern regions and the country as a whole possess.

To be able to do this, we need to widely implement bold innovative solutions. All of that must be reflected in the regulatory framework and business environment, as we continue addressing issues that define the quality of life of our citizens. All of that should be done in a timely manner.

Such approaches have proven themselves in the Far East and the Arctic. We will continue developing them and adjusting them to the needs of people and the needs of businesses and regions. We will use them to ensure Russia’s national interests.

Of course, the success of this work largely relies on a systematic and comprehensive approach, the ability to look forward, to see prospects, to set big goals, and to set the plans to achieve them. Based on the outcomes of this forum, I am asking the Government to approve a long-term Strategy for the Development of the Far Eastern Federal District to 2036. Please do that within the next 12 months.

Much is being done in the Far East and the Arctic, and a lot more will need to be accomplished. Importantly, and I want our foreign friends to hear me, we are open to everyone who is willing to take part in this work.

Thank you for your attention. Thank you.

Maria Rybakova: Thank you very much, Mr Putin.

I have a quick question to follow up on that. The Far East will be just fine near-term and long-term as well. We can breathe a sigh of relief.

Traditionally, we have two main economic forums in Russia: the Far Eastern Forum, which has always been oriented towards Asia and the Pacific region, and the St Petersburg Forum, which, I think, has always served as a platform, or a small window to Europe.

If you look at our main symbol – the double-headed eagle – it also looks to the West and to the East. You had quite a fulfilling trip to China for the SCO summit. One can get an impression that the eagle is now looking to the East with its both heads.

A group photo of you, Xi Jinping, and Narendra Modi has made it to tabloids around the world. It was dubbed a new alliance of the elephant, the dragon and the bear. My question is: what place does the bear have in this alliance? What is it in this group?

Vladimir Putin: A bear is a bear.

Maria Rybakova: But bear is a fairly tough animal, Mr Putin.

Vladimir Putin: You just said that our eagle is looking to the East and to West. But there is also South.

Maria Rybakova: Alright, let us say the eagle is looking southeast.

Vladimir Putin: I have discussed this issue with my colleagues many times. What I was saying is that our interaction, our expanded interaction and joint work with our friends from the Asia-Pacific region and the Global South has nothing to do with the current political developments.

Look, President Xi Jinping and I took up this major effort 20 years ago. It has nothing to do with the current circumstances, but is related to our respective national interests. Our economies are complementary, we are neighbours, and we share many common interests, common approaches, and common values. To be sure, traditional values.

We, in Russia, knew the inner workings of the global economy. What are they? The whole world knows well that it is growing at a fast pace featuring new areas of focus and growth points. Naturally, we are guided by this, all the more so as we enjoy excellent neighbourly relations with many countries, including the People’s Republic of China, India, and Indonesia. Please note the pace of growth in these countries: Indonesia has almost 300 million people. That is quite a market.

There are small, but rapidly growing countries, such as Malaysia, Thailand, and Vietnam, with which we have had special relations for decades. Why would we not put all of that to good use? It is a natural thing to do. This is not a pivot anywhere. It is simply an answer to objective processes occurring around the world and in the global economy.

To be continued.