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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.

We have never refused to cooperate with those who wish to work with us, including in other countries across Asia. At the moment, I simply do not want to put anyone in a difficult or awkward position. Companies from certain countries that face some problems due to the current political circumstances have not left our market; they are still there, they continue to operate and even seek to expand cooperation.

For political reasons, many European companies have exited – yes, at a loss to themselves. We are aware of this and remain in contact; many are eager to return as soon as political restrictions are lifted. We do not turn our backs on anyone. Contrary to suggestions that we are “looking elsewhere,” we are not… Our foreign and economic policies remain stable and predictable.

In my view, this represents a clear competitive advantage, as stability is crucial for business. We have not turned away anyone or forced anyone out. Those who wish to return are always welcome, but based on the conditions that are developing at the moment.

Regarding the dragon and the elephant dancing together – this analogy was originally made by President Xi Jinping, not me – later the bear was added. The bear, of course, symbolises Russia. But we are staying in the Far East, and here we also have the world’s largest tiger – the Ussuri tiger, which is a Russian tiger.

Maria Rybakova: Continuing with the theme of returns:

Overall, it seems to me that there is a global trend towards protectionism. In other words, it appears that many countries prefer focusing inward, supporting domestic business rather than attracting external competitors. I want to emphasise that this is just my observation and my opinion – I am not an economist and would like to hear your opinion.

What do you think: is this policy, which seems to be actively pursued in some countries, beneficial or not?

Vladimir Putin: This approach is harmful, both to those who adopt it and to the global economy and international trade. It fosters separatism, both regional and national. Nothing positive comes from pursuing such a policy, as today’s world is highly interconnected and driven by possibilities and technological development. Isolating oneself within a purely national framework is difficult and counterproductive, as it inevitably undermines competitiveness.

We proceed from the fact that Russia is open to cooperation with all countries of the world, and above all with those who are willing to work with us, with our friends. At the same time, we are not shutting ourselves off from anyone. I believe the vast majority of those who are present here, if not everyone, will agree with me: such openness is beneficial to everyone who adheres to this point of view and this policy.

Maria Rybakova: Thank you.

Vladimir Putin: As they say in such cases – thank you for your support.

Maria Rybakova: Exactly. Thank you for your support.

Next, I would like to turn it over to the Prime Minister of the Lao People’s Democratic Republic. Mr Sonexay Siphandone, please come up to the podium. You have the floor.

Prime Minister of the Lao People’s Democratic Republic Sonexay Siphandone (retranslated): Your Excellency Mr Putin, President of the Russian Federation.

Ladies and gentlemen.

It is a genuine joy and honour for me to participate in this forum. I was very happy to receive an invitation from President Putin and to come to Vladivostok. This is my first time in this city.

On behalf of the Government and the people of the Lao People’s Democratic Republic, I would like to express my sincere gratitude to His Excellency President Putin and the Government of the Russian Federation for the warm welcome extended to me and our delegation.

I would also like to thank you for the excellent organisation of the 10^th Eastern Economic Forum. I am absolutely sure that this forum is an important driving force in promoting cooperation in the sphere of economy, social development, and cultural interaction. This forum contributes to improving the quality of life in the Russian Far East and in the Asia-Pacific region as a whole.

Our meeting today clearly demonstrates Russia’s leading role as it strives to promote international cooperation within bilateral and multilateral formats. This also applies to political and economic interaction, as well as to promoting innovative technologies and designs.

Today, we have found ourselves in an extremely difficult situation, where changes in the international arena are absolutely unpredictable due to the geopolitical situation, with existing problems, primarily caused by protectionist measures that some countries are introducing in an attempt to compete and even hinder the growth, accelerated growth of other countries.

This is aggravated by a number of other problems, including natural disasters, climate change, exceedingly rapid development of modern technologies, and innovative technological solutions, especially the introduction of artificial intelligence.

We are facing the problem of instability on the energy and raw materials markets. Food also poses certain problems. We are witnessing crises in this area as well.

These problems must be solved in order to ensure global peace, prosperity and stability now and in the future. In order to solve all these problems, we must cooperate. We must use the existing consultative, multilateral and bilateral mechanisms that are based on the principles of mutual respect and compliance with international law. This is an important mechanism that often requires certain reforms in order to properly reflect the current situation and to meet its challenges.

The theme of this year’s forum is “cooperation for peace and prosperity.” This choice is highly relevant in today’s circumstances, because without peace, prosperity cannot be achieved. Conversely, without prosperity, peace cannot be truly sustainable or lasting. That is why we must work together to ensure that the concepts of prosperity and peace go hand in hand.

Your Excellency, ladies and gentlemen,

The Far East brings together a number of countries with enormous potential. We can see that the Russian Federation plays a key role as a driving force for strengthening cooperation in this region, both in bilateral and multilateral formats.

Above all, associations such as BRICS, the Asia-Europe cooperation framework, the SCO, and others contribute significantly to advancing regional economic cooperation. These formats are based on the principles of mutual respect and the independence of their members.

Laos also seeks to promote cooperation within the framework of open and inclusive mechanisms. We believe that only through such cooperation can we find effective solutions to modern challenges. It is essential to make use of international mechanisms that continue to remain relevant in addressing these problems.

For the Government of the Lao People’s Democratic Republic, it is essential to create a more favourable economic environment for attracting investment and expanding trade.

Among other measures, we are working to establish and develop special economic zones and industrial parks across the country. We have also eliminated unnecessary bureaucratic barriers in order to make the process of attracting direct foreign investment as comfortable and transparent as possible.

We have also updated the investment law, introducing a number of provisions that make investing in our country more attractive to both domestic and international partners.

Our focus is on the most promising sectors: agriculture, renewable energy, geological exploration, manufacturing, pharmaceuticals, education, technology, services, tourism, transport, infrastructure projects, and logistics.

I would also like to stress that Laos is the only ASEAN member state without access to the sea. This makes it especially important for us to maximise the advantages of our strategic geographical position. Our goal is to ensure connectivity through land transport routes and thereby contribute to the development of logistics across the region as a whole.

Our government makes considerable investment in infrastructure and the construction of high-speed railroads across the entire country. We also continue to extend transport and logistics connectivity with friendly countries to become a regional hub for investment and trade. Tourism obviously plays a major role in that respect.

It is thanks to such policy and measures that the Lao People’s Democratic Republic has earned trust and recognition at regional and international platforms. I would like to note that Laos held the 2024 ASEAN presidency during which we identified nine priority tracks.

All of them concerned the promotion of greater connectivity and sustainability of the region built around ASEAN’s three major principles. We had a very fruitful ASEAN presidency, and we remain loyal to the declared principles, namely, the principle of ASEAN’s central role.

Today we can safely say that ASEAN is a community which has proved its commitment to peace and regional cooperation, acting invariably in the spirit of mutual assistance, in accordance with the path ASEAN has chosen.

Therefore, the Lao People’s Democratic Republic believes that enhancing ASEAN requires the promotion of economic cooperation and connectivity in the overall region. We will continue to augment regional integration and connectivity.

Your Excellency,

ladies and gentlemen,

The Lao People’s Democratic Republic is open for cooperation with all countries to achieve the goals of promoting peace, stability, prosperity and wellbeing in the region and worldwide.

It is in this spirit that I would like to invite you all to visit Laos so as to learn about our rich culture and beautiful nature as well as to see your potential in fostering cooperation and making investment in our country.

Also, on behalf of the Government and the people of Laos, I wish every success to the 10^th Eastern Economic Forum here in Vladivostok. I hope it will remain a venue for free exchange of opinions, for cooperation and building a future where all countries have equal opportunities.

I would like to express my sincere gratitude to President Putin, and thank and congratulate him on the successful holding of the forum.

Your Excellency, ladies and gentlemen, I wish you all good health and successful performance of all your duties.

Thank you for your attention.

Maria Rybakova: Thank you very much for your kind words. Thank you for the invitation, I will gladly accept it as I have never been to Laos.

In addition to what you have told us now, I would like to separately discuss an amazing thing. You are now the biggest exporter of electrical power. You are even nicknamed as a Southeast Asia battery.

How did you manage to increase it in such amounts so fast? Respectively, we may also learn on your example, the more so as Vladimir Putin said we must also build hydroelectric power stations and increase the fuel and energy complex in every possible way.

I beg your pardon, we have technical issues with translation.

Mr Putin, I will have to ask you then. Yesterday, you had a major meeting, where you discussed the fuel and energy complex in the Far East, and the importance of investing in expanding it.

My main question is where will the money come from? We are talking enormous amounts of funds, the volumes are large, and the goals you have set are, let us say, quite serious.

Vladimir Putin: Money is always important, but not the main thing. The main thing is to properly organise work, to identify priorities, and to establish interaction between various entities that have been assigned a common task.

This common task is for the regional authorities to, on the one hand, come to terms with investors and, on the other hand, investors must guarantee – some of our colleagues present here, for sure, are planning to do something – and these investors must guarantee the consumption of this energy, meaning that those who will produce it must be sure that as they invest money in creating energy capacities and grid facilities, their efforts will not be in vain, and things will not hang up after they spend their money.

The first thing that needs to be done is to organise joint work, and then to look for the latest technologies and investors who are ready to use these technologies in conjunction with the oversight organisations in charge of monitoring the fragile ecosystem of the Arctic and the Far East. This is the common task.

In that case, money will not be a problem, because the invested funds will pay back quickly. Ultimately, this will benefit the budget as well, since it will receive more tax revenue from the effective and competently organised work at new enterprises.

Maria Rybakova: What about supporting the industries? I mean the coal industry which is going through difficult times. You mentioned gas yesterday and said that we may face gas shortages in the Far East and volumes must be increased. How do you see solutions to these problems in these particular industries and who should we start with?

Vladimir Putin: You mentioned coal miners, who, like you said, are going through difficult times. Times are difficult in the sense that our coal mining industry is large, and the situation on international markets has changed, but we must largely focus on the domestic needs and the domestic market. This is my first point.

Second, to reiterate, we possess large amounts of coal in the Far East that will last 900 years. In order for us to use them effectively, we need the latest technologies. This is what we need to focus on in the first place.

If the domestic market consumes the volumes we need, we will be able to use it effectively, and we will simply have no difficulties with the situation on international markets, since it will be irrelevant. We will then be able to regulate the work of all industries, including coal mining, in the ordinary course of business. This is what we should strive for, and this is one of our critical goals.

The situation on international markets matters, no doubt about it, and we must take it into account. But in order to be more flexible and more sustainable, we must rely primarily on the domestic market.

Maria Rybakova: Thank you.

I would like to invite our next speaker. Prime Minister of Mongolia, Gombojavyn Zandanshatar, you have the floor.

Prime Minister of Mongolia Gombojavyn Zandanshatar (retranslated): Esteemed President of the Russian Federation, Mr Putin,

Esteemed Prime Minister of the Lao People’s Democratic Republic Sonexay Siphandone, esteemed Member of the Politburo of the Central Committee of the Communist Party of China Li Hongzhong!

Ladies and gentlemen!

Allow me to extend my greetings.

Mr Putin, I would like to sincerely thank you for your kind invitation to participate in the Eastern Economic Forum, which grows in significance and scale with each passing year. It is a great honour for me to take part in the jubilee tenth Eastern Economic Forum as the head of the executive power of Mongolia.

The regular assembly of the Eastern Economic Forum, along with its discussions on key issues of international and regional economic development, investment, infrastructure, energy, and environmental cooperation, is of great importance for shaping the future trajectories of our countries. This has firmly established the forum as a vital mechanism for dialogue in the Asia-Pacific region. I am confident it will continue to serve as an authoritative platform for meaningful discussions.

This year’s theme – Far East: Cooperation for Peace and Prosperity – is both timely and highly relevant. I believe that our deliberations here will help chart new avenues for joint development.

Amid large-scale political, social, and economic changes on the global stage, our countries are facing complex challenges in the social and economic spheres, including rising prices and persistent logistical and financial difficulties.

I am confident that the Far Eastern region – home to the majority of the world’s population and accounting for one-third of global GDP – will play a decisive role in the future. For this reason, Mongolia is keen to deepen trade and economic ties and to expand investment, particularly with the states of East and Southeast Asia.

Along with our geographical advantages, Mongolia boasts abundant natural resources as well as a young and skilled workforce. The Government of Mongolia has been pursuing consistent policies to harness these assets, attract investment, and foster trade and cooperation, and these efforts are already delivering results. Over the past three years, our economy has grown at an average annual rate of six percent, contributing to the region’s stable development.

The Government will continue its work on diversifying the economy, strengthening macroeconomic stability, creating a favorable business climate, and enhancing the openness of foreign trade.

Ladies and gentlemen,

We are currently celebrating the 80th anniversary of the end of the Second World War, an event that has been ingrained forever in the history of humankind including the peoples of Mongolia, Russia and China.

Our countries, eternal neighbours and strategic partners, keep strengthening and fostering bilateral and trilateral relations, overcoming all barriers, as we are set on expanding mutually beneficial cooperation.

Ten years ago, the three countries’ leaders signed a roadmap of cooperation between Mongolia, Russia and China, and identified the priorities of trilateral interaction. Several days ago – in fact, three days ago – the leaders had a meeting in China to discuss further cooperation plans.

I want to stress that Mongolia is ready to actively participate in the alignment of the Steppe Road Initiative, the Eurasian Economic Union, the Belt and Road Initiative, and also to promote and deepen the implementation of the economic corridor with Russia and China. We will ensure stable and fruitful participation on this track.

The programme of establishing an economic corridor Mongolia-Russia-China designed to develop and enhance comprehensive cooperation within the strategic partnership between Mongolia, Russia and China, will definitely enhance political trust, attract investment and contribute to regional integration. In this context, Mongolia has always had highest regard for the significance of and prospects for the 33 projects of the economic corridor. We believe that laying foundations for mutually beneficial cooperation, especially in road transport, helps attract investment from international banks and financial institutions. Regular trilateral meetings on the implementation of these projects also promote their advancement.

The parties have also agreed in principle on another major project – construction of a gas pipeline across the territory of Mongolia. I would like to declare with full responsibly from this rostrum that the Mongolian government is committed to rendering every possible support to this mega project. We believe this project will unveil new economic opportunities, will be beneficial for the environment and strategically important. It will become a project of great significance for trilateral cooperation.

Esteemed Mr Putin, I express sincere gratitude to Alexei Miller for this project. Thank you.

In addition, our countries are also discussing an upgrade of the central transport corridor connecting our three nations, setting up new railway interchanges and the development of cross border checkpoints which meet international standards. These are all strategically important and economically advantageous projects. We think the implementation of these programmes and projects contributes to expanding trade and transport links between Russia, China, Asia and Europe and also steps up regional cooperation.

An interim agreement on free trade between Mongolia and the Eurasian Economic Union and its member states was signed at the meeting of the Eurasian Economic Commission Supreme Council in Minsk last June. Under the agreement, tariffs were cut on 367 goods and temporary customs duties on some goods were completely scrapped, which was in important step forward in regional economic integration.

Ladies and gentlemen,

The Eastern Economic Forum will help open up new opportunities to fight crises in the Far East, Asia and the Pacific Region, invigorate regional cooperation in the economy and other areas, and also launch new important joint projects and programmes.

We are totally ready to expand cooperation and to advance the development of the region together. Over the past time, we have initiated a multitude of programmes and measures to enhance integration. Stepping up these efforts, filling them with new content will definitely serve our common interests.

I wish all the participants of the Eastern Economic Forum success, achievements in work, and good health.

Thank you.

Maria Rybakova: Thank you very much.

I have a follow-up question. Mr Gombojavyn Zandanshatar, you mentioned the Power of Siberia. Mongolia took an active part in the SCO Summit when a trilateral meeting was held.

I have the following question – I was looking for information which was not available until now – will you buy our gas or will you render transit services only?

Gombojavyn Zandanshatar (retranslated): We are engaged in trilateral efforts to lay that gas pipeline from Russia across Mongolia to China. At present, all technical and economic aspects have been completed, including research.

It is a large-scale trilateral project. The parties agreed in principle on laying this gas pipeline.

I can say with all responsibility that we are fully prepared for the construction. We attach great importance to laying this pipeline in a proper way. At today’s meeting with Alexei Miller we had a detailed discussion of all the relevant issues, how to implement this project efficiently and without any failures, and also to ink a trilateral intergovernmental agreement.

Mongolia is not only a transit country. It can also buy and consume natural gas, connect its big cities to this gas pipeline, that is, build a gas distribution network. It will contribute to industrial development and mitigate environmental disasters such as winter smog in Ulaanbaatar, and will offer new opportunities for Mongolia’s economy. It will become a strategically crucial natural resource to solve current issues. Under the project, 50 billion cubic metres of gas will be transferred by that pipeline annually. It is evidently one of the biggest projects of the century. I believe it will also involve a lot of organisational efforts.

I would like to thank and congratulate everyone on this project.

Maria Rybakova: So are you ready to buy gas?

Gombojavyn Zandanshatar: Research work is currently underway. The devil is in the details, that’s why more research and discussions are needed.

Maria Rybakova (addressing Alexei Miller): I ask you to place it on record, Mr Miller, that I have just reached an agreement, as it appears.

Mr Putin, obviously, the next question is a logical follow-up on our discussion of the Power of Siberia. The memorandum has been signed and caused a stir. Everybody had a sigh of relief, as it seemed to me. The term of the agreement is 30 years. I have not seen the specific price. As I understand, it must be a commercial secret, yet they say that the prices will be lower than in Europe, at least.

There was a Soviet joke that we are giving our oil to Europe through “Friendship.” What do you think, are we going to give the “power” of our Siberia to China?

Vladimir Putin: This is a mutually beneficial project.

As for prices, they are based on the market and are actually estimated using the same formula as for Europe. The formula is the same but its components, the prices of various products, which make up the gas price, they are simply different in different regions of the world. The prices in Europe differ from those in Asia. And the formula to determine the price is the same, it is absolutely market-based.

We had long talks and every time when participants in the economic activity are talking and trying to find a solution – and most of the people here are like those – everybody understands well enough: this is not an easy process yet everybody is striving to reach the result both negotiating sides are interested in.

Gazprom and its Chinese partners have reached such a result in the course of their years-long efforts. I can only congratulate them all once again. It is really one of the major energy projects in the world.

Maria Rybakova: Thank you.

Since we have approached the energy projects anyway, I still want to listen to the story about how Laos managed to make such a stride. I want to ask how you could become the main power source? I understand that our technical issues have now been resolved. Mr Sonexay Siphandone, please tell us the secret of your energy market. How did you manage to achieve such great results? Why does everybody want to connect to your power source?

Sonexay Siphandone (retranslated): Thank you very much for your question.

This is a very important question. We consider the electric power to be a priority area for us, like oil and natural gas. The thing is that we are a country that purchases 100 percent of its oil and gas, and for this reason the electric power is important for us, and it is also green power. Our government encourages a broader use of electric power.

We also regard the development of hydropower engineering as a priority, as we have abundant water resources and many rivers in our country. All this allows us to build a large number of hydroelectric power plants. Ninety-five percent of the energy that we produce comes from hydropower engineering. The total capacity exceeds 12 million megawatts. We plan to increase this figure to 30 million megawatts.

Still, given the climate changes and other calamities, the problem looks still greater for us, especially during the rain and draught seasons. This is why we resort to other, alternative energy sources. Specifically, we use wind and the solar energy.

We would like to thank President Putin, after our President visited Russia at the end of July. During the talks, peaceful use of nuclear energy was discussed, as well as the use of nuclear energy products in medicine. We talked about cooperation in agriculture. I firmly believe that cooperation with the Russian Federation will make it possible for us to develop our energy sector, and it will develop in a more stable manner. Moreover, we will ensure stability in the production and consumption of energy.

Of course, we cannot speak for entire Asia, but given our development priorities, we focus on advancing technology and science. We are creating a network of metadata centres to develop the ICT sector, and all of this requires energy. Therefore, we give priority to meeting domestic demand for energy and then export energy to neighbouring countries.

We are developing a power transmission network in order to cover more Asian countries.

Previously, we exported electricity to Vietnam, Cambodia, and Thailand. We also exported electricity to Singapore and Malaysia. Nowadays, we are beginning the second stage of all these projects. Yes, these are all priority areas for us, but, I repeat, energy must be provided first for our own domestic consumption and also meet the needs of neighbouring countries if we export this electricity there. There are very good prospects for our sector. I have just described them.

Thank you.

Vladimir Putin: We are discussing cooperation in the Asia-Pacific region. You keep bringing me back to cooperation, say, with our friends and allies in the People’s Republic of China. We have not yet talked about India: there are many plans there, too. But the Asia-Pacific region also includes, say, the United States. And there are many interested parties there who want to resume or begin new work with us.

We are talking about the Asia-Pacific region. We have received excellent proposals for working with US companies in Alaska: they have resources there, and we have technologies for extracting and liquefying gas that are much more effective than those that some of our American partners have. They know this, and at the level of economic players, companies are ready for cooperation. It does not depend on us. We are also ready, but if any political decisions are made there, we will move in this direction, and we can work together in the Arctic, too.

By the way, we have already discussed possible work in a trilateral format on some of our Arctic fields with our Chinese friends. In fact, all these options are being discussed, they are on the table. We only need a political decision. This is possible, and cooperation in both gas and oil would be mutually beneficial.

Maria Rybakova: Mr Putin, what do you think is the obstacle now preventing us from starting this as soon as possible? What is putting spokes in our wheels?

Vladimir Putin: This is not a question for me. We are not putting spokes or anything in any wheels.

Maria Rybakova: I see.

Vladimir Putin: Initially, you asked about our eagle, which is one of our symbols. It looks in one direction and in the opposite. Look at the eagle now. Did we turn away from anyone? No, we did not turn away from anyone. The eagle continues to look both ways.

Maria Rybakova: Thank you.

I would like to give the floor to Li Hongzhong, member of the Politburo of the Communist Party of China Central Committee and Vice Chairman of the Standing Committee of the National People’s Congress.

Please, the floor is yours.

Li Hongzhong (retranslated): President Putin, Prime Minister Siphandone of Laos, Prime Minister Zandanshatar of Mongolia.

Ladies and gentlemen, friends,

I am delighted to meet you all in Vladivostok, the pearl of the Russian Far East, at the 10th Eastern Economic Forum.

This year marks the Forum’s tenth anniversary. A decade ago, thanks to the initiative of President Putin and his personal support, the Forum’s remarkable journey began here.

Over the past nine years of dedicated work, the Forum has grown into a vital platform for fostering cooperation in the Far East and advancing regional development.

It has become a powerful driver for unlocking the potential of the Russian Far East and strengthening the economy of Northeast Asia.

Over the past nine years, we have witnessed not only the growth of the Forum, but also remarkable progress and breakthroughs in the history of China–Russia relations. Under the strategic guidance of President Xi Jinping and President Vladimir Putin, political mutual trust has deepened steadily, while comprehensive cooperation between our two countries has continued to expand.

The breadth, depth, and high quality of our bilateral cooperation reflect the vitality of interregional ties and exchanges. In this context, I would like to highlight the strong momentum of cooperation within the Northeast China – Russian Far East framework, made possible by the personal attention and efforts of our two heads of state.

For many years, China has remained the largest trading partner and leading external investor in the Russian Far East. In 2024, trade under the Northeast China – Russian Far East framework reached $105.8 billion, representing 43 percent of total bilateral trade and serving as a key driving force in China–Russia economic relations.

Ladies and gentlemen,

Friends,

This year marks the 80^th anniversary of the Chinese People’s War of Resistance Against Japanese Aggression, the Great Patriotic War, and the world war against fascism. Eighty years ago, in the face of the evil forces of fascism, China, the Soviet Union, and other peace-loving countries and peoples stood firm in defending historical truth and justice, and delivered a decisive rebuff.

China and the Soviet Union, as the principal theatres of World War II in Asia and Europe, endured enormous sacrifices and made a historic contribution to the victory in the world anti-fascist war.

In May and September, Chinese President Xi Jinping and Russian President Vladimir Putin took part in the celebrations of the victory anniversary in Moscow and Beijing. They defended the outcomes of World War II and the principles of international justice while calling on the entire world to remember history and open a path to the future.

Ladies and gentlemen,

Friends,

Today, the world is undergoing profound and accelerating changes. Global challenges are not diminishing, and the lack of global governance is becoming increasingly acute. Many issues transcend the internal affairs of individual states and cannot be resolved by any country alone.

Just a few days ago, President Xi Jinping put forward an initiative on global governance at the SCO Plus meeting. This initiative focuses on the vital question of what kind of global governance system should be created, and how it can be reformed and improved.

This represents China’s vision for effectively addressing global challenges and deepening international cooperation. It reflects the expectations of many stakeholders, demonstrates the responsibility of a major power, and expresses its desire to build a community of shared destiny for humankind.

China and Russia are influential powers and constructive forces supporting global strategic stability and advancing global governance. We are ready to fully leverage the advantages that our two neighbouring countries enjoy, and to strengthen close and united cooperation with all regional partners, including Russia, in the spirit of joint consultations, joint construction, and shared benefit. Together, we can move toward a bright future of peaceful development and mutually beneficial cooperation. In this context, I would like to offer the following opinion.

First – peace and stability contribute to development. Peaceful, stable and prosperous Northeast Asia meets the interests of all the countries in the region and is a common dream of its peoples. China has long been pursuing the path of amicability and establishing neighbourly, partner relations with adjacent nations, supporting the countries of the region in selecting a development path consonant with their national realities. We are ready to deepen mutual political trust and alignment of interests, jointly safeguard the regional stability and respond to common risks and challenges.

Second – openness and tolerance contribute to prosperity. As the Chinese adage goes, ‘Openness leads to progress while isolation – to lagging behind.’ Amid current globalisation, none of the countries is progressing alone. We back up an open, transparent, inclusive and non-discriminatory multilateral trade system and advocate the creation of an open-type regional economy, unlocking the potential of natural peculiarities and the geographical advantages of the world’s countries. We are ready – through joint consultations, joint construction and joint use – to strengthen cooperation in production and supply chains, remove protectionism, assist in the free movement of capital, market and technologies for the sake of economic integration in the region.

Third – reciprocal exchange and assimilation contribute to cementing mutual understanding. Spiritual bonding of nations is a foundation for friendly relations between our countries. Our countries are bonded by common mountains and rivers, our cultures influence each other. Our peoples maintain close ties while our friendship is rooted in the past.

We need to continue this friendly timeline, deepen reciprocal exchanges and training, enhance cooperation in tourism, education, youth affairs, culture and art. We need to make people’s trips easier so as to foster neighbourliness and friendship.

Ladies and gentlemen,

Friends,

A Chinese adage says, ‘When everyone’s efforts are joined, victory is inevitable.’ Peace and prosperity in our region are inseparable from each party’s efforts. China is ready “to open its doors” so as to share new development opportunities with all countries of the world on the basis of the news results of China’s modernisation and China’s greater openness.

We are ready to promote neighbourliness and friendship, strengthen mutually beneficial cooperation for the sake of joint usage of the results of the development of all the region’s countries for our wonderful common future.

I wish all the participants fruitful work. Thank you for your attention.

Maria Rybakova: Thank you very much.

Right after your remarks, I would like to touch upon your meeting yesterday, which focused on Russia’s reciprocal decision to abolish visas. We discussed this earlier, and you mentioned during your visit to China that China introduced a visa-free arrangement for Russians.

My immediate question is this: While expanded tourism will certainly benefit both countries’ economies and cultural ties, the main concern remains, Mr President, which is the matter of payments.

For example, I want to visit China as a tourist, but I don’t have a Visa card, and my Mastercard is blocked here. I got a UnionPay card issued about three years ago, but it no longer works. Today, very few banks can issue such cards, and those that do are ruble-based, meaning payments are made in rubles. The only option is to carry cash and exchange it or find a more creative solution. Unfortunately, I haven’t mastered cryptocurrency yet.

Are there any preconditions for making the system of payments between our countries more transparent and accessible?

I would like to pose the same question, in turn, to Mr Li Hongzhong.

Vladimir Putin: First of all, I would like to emphasise that the decision by China’s political leadership – clearly made at the highest level – allowing visa-free entry for Russian citizens into the People’s Republic of China came as a complete surprise to us. We had no prior knowledge of it, and it was especially welcome.

Naturally, this decision is a strong sign of friendship, which we deeply appreciate. It will undoubtedly lead to a significant increase in mutual travel, create more favourable conditions for businesses, and further strengthen the ties between our two countries. This is simply self-evident.

To travel to any country, including China, an ordinary person usually needs to visit several authorities, submit documents, and go through various formalities. Now, with this visa-free arrangement, one can simply board a plane and fly – no bureaucracy. Right? This will undoubtedly bring our two countries closer together. Naturally, we will respond in kind to this gesture of friendship and adopt the same measures.

Regarding tourist travel, it is true that the system of payments needs further improvement. We are working on this intensively. Our financial institutions of the highest level are attending to this matter, along with commercial banks.

I do not want to make more comments at the moment, so as not to create any difficulties for future decisions. This is also connected with the need to respect the interests of financial institutions operating under sanctions pressure. Nevertheless, possible solutions do exist.

We are perfectly aware that steps must be taken for tourists to have as few difficulties as possible. They can certainly use our Mir payment card, and similar Chinese instruments. These payment instruments can be aligned, third countries’ bank cards can also be used. I assure you that the central banks of both countries are working on this and will find a solution.

The heads of the financial institutions discussed all these issues in my presence and in the presence of President Xi Jinping right now, during our delegation’s visit to the Chinese People’s Republic. They are maintaining a dialogue and keep discussing this matter.

I am confident that decisions are forthcoming.

Maria Rybakova: OK, then we’ll be waiting.

Mr Li Hongzhong, we would like to hear a comment on the matter from the Chinese side.

Li Hongzhong (retranslated): Thank you for your question.

The Chinese Government is introducing a visa-free regime for Russian citizens. These are important outcomes and agreements between our heads of state. It is a meaningful sign of enhanced large-scale progress in the Russian-Chinese relations.

I have attentively followed President’s Putin’s reply. I think President Putin’s answer is very professional and sets benchmarks for further development.

I will not go into detail either, but I think, since our countries will meticulously work out all the issues together, we are sure to remove difficulties and technical issues related to payments. Therefore, we are confident we will achieve our goals.

For example, circulation of Chinese currencies and payments. Of course, we hardly use cash now in China, we use our telephones for payments. This is a hard time for thieves because we do not use cash, it’s just a payment method.

When I arrived in Vladivostok, I also had a good impression because I used my telephone here just like in Beijing. It means we already have good alignment in telecommunications.

We also have to work on financial communications at the next stage. I think that we will certainly reach these goals through joint efforts.

I have just mentioned Russian-Chinese cooperation. I said we need to ensure the free movement of capital, markets and people. I firmly believe that we will definitely solve this issue.

Maria Rybakova: Thank you for the answer.

Well, it looks like my only hope is the QR codes, no other options.

Then, I want to come over from a good and friendly agenda to a not so friendly agenda and travel to the other part of the planet. As a matter of principle, you have answered media questions at the news conference in China just the day before. I mean the Ukraine crisis and everything concerning relations with America, everything happening in the area of the special military operation.

Just yesterday, another meeting of the ‘coalition of the willing’ was concluded in Paris. Basically, I didn’t see any specific decisions taken at the end of it. So far, it's just talk about deploying military forces in Ukraine. But Donald Trump said he would call. First question: has he called yet? And the second question: What do you think about the decisions proposed by the other side?

Vladimir Putin: We have an open dialogue with President Trump. We have agreed to call each other, if need be, and talk. He knows that I am open to such talks, as well as he is – I know it. However, so far, based on the results of these consultations in Europe, we have not had any discussions. Actually, it was difficult for me to do this, as I have just arrived from China and am here now. We have no communication problems here. This is the first point.

Second, regarding possible military contingents in Ukraine. This is one on the basic reasons for dragging Ukraine into NATO. So, if any troops appear there, especially now, during combat operations, we will deem them legitimate targets for destruction.

And if any decisions leading to peace, a lasting peace, are achieved, then I will not see the sense of their deployment in Ukraine, that’s it.

If agreements are achieved, then no one should doubt that Russia will execute them in full. We will observe the security guarantees, which, of course, would be drafted both for Russia and Ukraine. And I will say it again: Russia will observe these agreements. Anyway, nobody has ever discussed it with us seriously, that’s that.

Maria Rybakova: Thus we will be waiting. Time will tell, as they say.

The next question is about peace settlement. You said earlier that you basically see a certain potential in this regard and even invited Vladimir Zelensky to Moscow. However, the Ukrainian Foreign Ministry has officially declined it. Do I take it right – or maybe I am wrong – that we cannot speak about any steps towards peace settlement in the nearest future?

Vladimir Putin: I would like you to stick closer to the topics of the Asia-Pacific economic cooperation. But I realise that without solving such acute problems, cooperation as a whole is burdened, so these are legitimate questions.

What can I say?

First, just recently the leadership of the Kiev regime spoke unflatteringly of us, to put it mildly, and excluded any possibility of direct contacts. Now we see that they are asking for such contacts, at least they are suggesting having them.

I have repeatedly said that I am ready for such contacts. At the news conference in Beijing that you mentioned I said that I do not see much sense in them. Why? Because it will be impossible to come to terms with the Ukrainian side on the key issues. Even if they have political will – which I doubt – there are legal and technical difficulties which are related to the fact that any agreements on territories must be confirmed, under the Ukrainian constitution, in a referendum. To hold a referendum, a martial law must be lifted, as referenda are not held under martial law. If martial law is lifted, presidential elections must be held right away. After the referendum, if it is held, regardless of its results, it must be endorsed by a Constitutional Court’s ruling. But the Constitutional Court is not functioning because, as I see it, after it received enquiries on the legitimacy of the incumbent authorities, the court dodged rulings while the head of the regime ordered the security guards not to let the Constitutional Court Chairman to his office. This is the kind of democracy they have there. Meanwhile the Supreme Court Chairman is in jail on corruption charges. It is common knowledge that corruption abounds in Ukraine. But is not clear why it is exactly the Supreme Court Chairman who should be put behind bars. Although it is clear that they have reached the point of destroying their judicial system as such. This is yet another vivid example of how “democratic” the current Ukrainian authorities are. So this is an endless process leading to nowhere. Nevertheless, we said that we are ready for a top-level meeting.

Look, the Ukrainian side wants this meeting and suggests it should be held. I said, ‘I am ready, please come, we will certainly provide proper conditions for work and security, with a 100 percent guarantee.’ But if we are told, ‘We want to meet with you, but you should go to some place for this meeting,’ I think these are just excessive demands towards us.

Let me reiterate – if someone really wants to meet with us, we are ready. The best place for it is the capital of the Russian Federation, the hero city of Moscow.

Maria Rybakova: Mr Putin, thank you for the answer.

May I ask one more question? And then we will definitely switch to the Far East.

Vladimir Putin: Go ahead.

Maria Rybakova: I would like to go back to the root causes of the special military operation.

Literally, during the same news conference, you said you saw no obstacles and had no problem with Ukraine accessing the EU. That same day, a statement by former Ukrainian President Yanukovich was released. He enjoyed support at the time, and we got along with him just fine. I understood that he also always said that he wanted and looked to the West. Maybe, I misunderstood it. Were you talking about the same thing, or not?

Vladimir Putin: I have no way of knowing how you understood it. I will tell you how things are, and things are as follows. Indeed, Ukraine set itself a goal – and still has it – to join the EU. To reiterate, this is Ukraine’s legitimate choice. It decides how to build its international relations, how to ensure its interests in the economic sphere, and whom to conclude alliances with.

The problem for us when Yanukovich was president was that Ukraine’s integration into the European system of economic relations entailed certain economic issues, because Ukraine was part of the free trade zone, our customs borders were open, and for us this implied certain consequences. Ukraine had to compare, put on the scales and see what it was losing in contacts with us in direct monetary and cooperative terms, and what it was gaining there. This is what President Yanukovich thought about. He ran the numbers and that made him cry, because opening markets to competitive, highly competitive European products was killing the manufacturing industry in Ukraine and shutting down cooperative and trade relations with Russia. That was the problem. As far as I remember, he did not say no to joining the EU, on the contrary, he wanted to join it. I do not know what he said, but I know for sure that he wanted it and was striving for it, but on terms that were acceptable to Ukraine.

It did not concern us in any way other that it affected our interests in cooperation ties. But otherwise, no problem, we have never objected to any integration moves in Ukraine’s policies with Europe.

Security issues are a different matter. President Yanukovich and Ukrainian prime minister were against drawing Ukraine into NATO. This issue directly affected us and continues to affect us from the point of view of ensuring Russia’s long-term security interests.

What happened next? As a result of the coup, they got Yanukovich out of power. They removed the person who was against Ukraine joining NATO, and used a bloody coup in Kiev to bring to power forces that advocated and continue to advocate for Ukraine’s NATO membership. This does not suit us at all.

Even though each country can choose how it prefers to ensure its own security, such issues cannot be addressed without regard for Russia’s security, because there is a general rule included in the European documents: the security of one country cannot be ensured at the expense of the security of another country.

Maria Rybakova: Thank you.

Russia, and especially the Far East – we are going to talk about wealth – naturally boasts enormous natural resources. This also applies to fish resources. Recently, I came across some interesting statistics, which I would like to share with you.

According to the data, in 2024, Russia’s crab exports to China reached a historic high of over 41,000 tonnes. For comparison: supplies of Russian crab to the domestic market over the same period amounted to about 8,000 tonnes. In other words, we have a sort of crab paradox: the crab really does walk sideways, bypassing us and heading instead to Korea, Japan, and China.

Do you think Russia has sufficient processing capacity at its ports to add value through processing, and supply it to the domestic market instead of just catching and auctioning it? After all, live crab is the most expensive product and, as far as I know, all live shipments are currently going in the opposite direction.

Vladimir Putin: It is not about prices, although that is certainly one of the key factors.

In order to improve and expand the supply of this product to Russian regions, the issue of logistics must first be resolved. We transport it by rail, which is costly, or by air, which is even more costly. That is the problem. Seafood – both fish and crab – ends up mainly in expensive restaurants. Why? Because it has to be flown in. If we could organise transportation and build logistics correctly, the situation would change.

However, I should note that fish products from the Far East – not only crab, but seafood in general – account for about 75 percent of the national catch, if I recall correctly. Of this, about 65 percent is also processed here.

Today, logistics is the most sensitive issue. We are working on it. We are giving it serious attention, and we will expand our capacity to distribute seafood, including crab, to all regions of the Russian Federation. This is indeed a problem.

Moreover, according to Ministry of Health standards, we are not yet meeting recommended levels of seafood and fish consumption. If I am not mistaken, the norm is 28 kg per capita per year, while today we are at around 23–23.5 kg. Clearly, there is work to be done here. We are thinking about it, and I hope this issue will be resolved.

Maria Rybakova: Wonderful.

Since we mentioned transport and accessibility, intraregional flights in the Russian Far East are not, of course, a matter of comfort but a matter of survival. There is simply no other way to reach some areas with such long distances.

I would like to tell you a brief story. I have a friend who lives in Khabarovsk. He needed to fly to Vladivostok but there were no direct tickets available. I think everybody who lives here knows how difficult it is to grab an intraregional flight ticket. And you wouldn’t want to drive 750 km. I hear from drivers they travel with two spare tyres just in case. Anyway, my friend bought a connecting flight through Moscow and flew from Khabarovsk first to Moscow, where he spent four hours in an airport, then boarded a plane and flew to Vladivostok. So, he did all that and, as their plane was approaching Vladivostok, due to adverse weather, their flight was diverted to a backup airfield in Khabarovsk. Overall, he spent 24 hours flying from Khabarovsk to Khabarovsk. Clearly, it is an anecdote but I think it explains a lot.

When do you think we can resolve the issue of medium-haul aircraft? Today, I’ve also come across news that the State Transport Leasing Company signed an agreement to lease 50 Baikal aircraft.

Perhaps I have missed something. Is Mr Trutnev here? I can’t see him. We have spoken and he told me that there is no such thing as a Baikal aircraft. They bought an aircraft that does not exist yet. I am a little confused. I don’t know, perhaps there is a reason to stop by the stand of the Prosecutor General’s Office? Do these aircraft exist or not, Mr President? And what are the prospects of intraregional flights in the Russian Far East?

Vladimir Putin: Unfortunately, although there was a rather decent local airline network set up in the Soviet times, it was lost in the 1990s. It was mostly neglected in the early 2000s, so people had to, and still have to, fly from one city, even if major, to another city via Moscow, like your friend. But we have already established a local airline. Of course, the key issue is the availability of medium-haul aircraft in sufficient quantity. The Government, the Ministry of Industry and Trade and our domestic enterprises have many plans in this area.

Unfortunately, I have to agree that this matter is taking longer than we wanted. But there is Baikal and other small aircraft that are to replace Antonov An-2. This is work in progress.

I will be honest, sometimes we argue with some of our responsible parties. They will have to expedite these efforts.

We have plans and specific models ready. They have been launched, and I have seen them in operation. The next step is serial production and supplies to airlines. We will certainly do all we can to speed up the process.

We are aware of this problem and of the fact that it still persists. We will keep on working on solutions.

I will not list everything. We have Baikal and many other aircraft models. I have seen them in operation. But serial production is not yet launched.

Maria Rybakova: Thank you very much.

In your speech, you mentioned investment growth; and indeed, foreign investment has increased over the past four years.

My question is this: if we look at the investment climate as a whole, foreign investment mainly comes from a few major countries, including China.

Also, it seemed to me that in your speech, you placed considerable emphasis on technological progress, underscoring the need to develop knowledge-intensive and complex industries. Yet, and this is no secret to anyone, investment is still largely directed toward commodity sectors such as mining, oil, gas, coal, and the infrastructure that supports them.

So, perhaps a logical question would be: is there a risk of falling into a commodity trap, where we would be perceived exclusively as an investment partner in these areas?

Vladimir Putin: No, there is no such trap or threat of falling into one. That risk would exist only if we did nothing. You paid attention to my speech, and one of my central – if not the main – arguments was precisely that: when it comes to investment, we must make the region as a whole more innovative.

This is not a problem of our partners that they tend to invest into the extraction of mineral resources. It is our problem. We should create conditions for the development of innovative sectors of the economy, and for people with the right expertise to come to work here. In fact, such a trend is already emerging, as I mentioned. Our task is to build the right environment.

I can assure you that our partners will be eager to invest in promising enterprises, provided that their implementation also brings them benefits. That is the only way it works; there is no alternative. I am confident that we can implement all of these plans.

By the way, we discussed these issues with our Chinese partners, our friends, in Beijing. Overall, we should organise our work, calibrating it to high technology economic sectors. This is what we are going to do. This is the only future for our economies and our countries, the foundation of our shared success. This certainly applies to the regions of the Far East as well.

Maria Rybakova: Thank you.

I would like to ask about the economy more broadly…

Vladimir Putin: One more thing about mineral resources – I have just looked at Mr Miller and recalled it – is that the concept that we can just drill a hole, and oil and gas will just pour through it is a primitive one. Mr Mikhelson here knows very well what liquefied natural gas is. The technologies he and his team have adopted do not exist anywhere else in the world. This is a high technology sector. And I say this without exaggeration, without hyperbole – it is the truth. The same applies to the gas sector as a whole.

Gazprom’s cooperation with our Chinese friends and partners is not limited to supply contracts. It is a genuine strategic partnership, which means that people are working together on technology-intensive industries, including gas. And there is plenty of work to be done to ensure the effectiveness and profitability for both suppliers and buyers. An extensive number of advanced technological solutions are necessary.

This work within the framework of strategic partnerships between interested companies has already been established and is underway. The only task now is to extend it to related and promising industries, such as artificial intelligence, and of course, we will do this.

We have agreements in the aviation industry with China as well. I am going to fly to another Russian city soon, where I will talk about engine manufacturing. There are plans to work on aviation, which is, by the way, well-represented in the Far East, including both military and civilian aircraft. Sukhoi Superjet 100 is manufactured here in the Far East. There are areas that can be improved, and the same applies to shipbuilding.

Maria Rybakova: Thank you.

I have a joke. I did not know how this plenary session would go so I checked a job hunt website in Vladivostok. By the way, I did not find a single job opening for a television presenter but I was curious to see what else is offered. What jobs and professions are really in demand here? I have mostly seen driver jobs – with salaries of up to 400,000 rubles, by the way – junior executives or pressing operators. Mr President, I have hardly seen any jobs for IT professionals. Even the most in-demand professionals section did not mention IT. I found one job opening in software development, but this is not much.

According to a SberIndex analysis, businesses in the Russian Far East are growing faster than on average in the country – and you said so yourself. And yet, this is mainly due to building large production facilities and production of mineral resources. The IT sector is lagging behind.

In your opinion, what could solve this problem if employers start seeking IT professionals? Are they to be ‘imported’? How can the Far East attract highly qualified technology professionals and incentivise them to stay here and treat this region as their home rather than a temporary placement?

Vladimir Putin: I have spoken about this at length in my remarks and said that young people do move here as they see prospects. There is a demand for young professionals. This trend is apparent but it needs reinforcement from the government. The region needs support in shaping a new image of local economic development, mainly with the help of advanced technologies.

I do not know what you have seen on websites, but I know for certain, having heard it from top managers of local companies, that there is a shortage of highly qualified workforce. The Zvezda shipbuilding complex that we have mentioned today is building a large-capacity fleet that we have not had before. We also need aviation professionals here.

It goes without saying that we need to develop all modern technologies so that we can go beyond developing the Far Eastern and Arctic mineral resources and can make this region part of Russia’s technology-intensive production in general. It is what we plan to do and it will elevate the region to a new development stage.

Maria Rybakova: Mr President, another aspect concerns the exorbitant wage demands among blue-collar workers as drivers want 400,000 rubles and welders want 500,000, for example. This is another side of the story. How can this matter be resolved in your opinion? Is it appropriate today to seek such high wages?

Vladimir Putin: I believe the more people earn the better.

Maria Rybakova: Certainly.

Vladimir Putin: It does matter. I said that it is an economic category. The higher the wage the higher the spending. The higher the spending the more Russian products are popular in the market because usually, people wish to buy Russian-made goods, and so on. This is another economic factor – and a positive one. Moreover, it makes people’s lives better.

Maria Rybakova: Thank you.

Of course, since we are talking about wages, I would really like to discuss what is happening with the Russian economy in general. Many statements have been made on the sidelines of the forum.

Vladimir Putin: I am not the only one here.

Maria Rybakova: Yes, of course, Mr President. But you see, I have so many questions for you. I will certainly have questions for the other guests. For now, I would like to focus on what is happening in the economy.

German Gref says he has noted signs of technical stagnation in the Russian economy. Do you agree with this?

Vladimir Putin: No.

Maria Rybakova: Mr Gref, there you go.

Vladimir Putin: He knows this well. We maintain constant contact. He regularly participates in our meetings, including those I hold with the Government and the Central Bank. Some members of the Government share his opinion, mainly because the Central Bank is holding the rate high to combat inflation.

You complained about prices in shops. The goal is not only to bring prices in shops down but also to ensure that economic actors also restrain price growth. We can discuss anything but I do not want to give assessments now. I have my own view, of course, but let me refrain from evaluating the Central Bank’s work. Let me note instead that our Central Bank is highly respected across the international finance community. This is first-hand information.

The Central Bank’s policy is deliberate. In 2023, Russia’s GDP grew by 4.3 percent; and in 2024, by 4.4 percent. At the same time, inflation rose, too. We need to address macroeconomic challenges and ensure a soft, smooth landing of the economy to stabilise key macroeconomic indicators and slow down price growth.

Yes, I know the debates very well: we discuss this daily. Just yesterday we were talking about this. Some experts believe that the economy has cooled down, but lending has not stopped. Ask Mr Gref himself: has lending stopped? No. The pace has slowed down, yes.

I know some industries are going through rough times, and people present here also understand this very well. However, everyone also understands that nothing good will happen if inflation spins out of control. It would become impossible to plan anything, not just years ahead, but even ten days ahead. This is a very delicate issue. Take banks, for example. You can ask the Chairman of VTB. He will tell you: yes, perhaps they have overdone it, maybe the economy has cooled somewhat too much.

Maria Rybakova: Mr Kostin often complains about the key rate.

Vladimir Putin: Yes. The Ministry of Economic Development will tell you the same thing. And all of them are right in their own way. But I am confident that we will eventually find a way to maintain the necessary pace of economic growth while keeping inflation to a minimum. I think that’s enough for this discussion format.

Maria Rybakova: Thank you.

My next question is for Prime Minister Sonexay Siphandone. In 2021, Laos and China launched one of the largest high-speed railways. There have been reports that the railway may be subsequently extended to Thailand. It is a major project that requires complex technology and infrastructure.

My question is: is there an opportunity, a chance, or prospects for connecting the railway to Far Eastern ports? And how can this be done sooner? It would expedite both our trade and cooperation. Is this a realistic prospect? Perhaps discussions have already taken place.

Sonexay Siphandone (retranslated): As for transport, we are using a modern railway that is far more advanced compared to the railway we built many years ago.

As I have already said, we are turning from a country with no sea access into a country connected to others. On this project, we cooperate with China.

As you have noted, we cooperate in railway development. We have successfully completed this project. Of course, the coronavirus pandemic was a certain obstacle, but we have managed to overcome these difficulties in our strategic cooperation.

According to the respective initiative, I am completely certain that there is an agreement between Russia and China. If there is also an agreement between Russia, Laos and China, we will be able to transport products from Laos via China to the Far East, including to Russia.

The railway may open new cooperation opportunities for Russia and ASEAN, China and ASEAN, and improve Lao products’ access to the market. I would like to stress that this is an alternative route that is faster and more sustainable.

The government of Laos is considering the possibility of establishing sea routes to Vladivostok through China, potentially via Hainan or a Vietnamese port. We have already agreed on some aspects of this project to date.

It would be an excellent opportunity for us to cooperate with Vietnam. We have no access to the sea but we have made an agreement with Vietnam that would help us reach both China and Russia.

As for Mongolia, we could also use similar transport infrastructure to exchange products. Certainly, there are many advantages to developing the Laos-China railway network.

Thank you.

To be continued.