Eastern Economic Forum

The Eastern Economic Forum (EEF) aids in fostering the growth of the Far Eastern Russian economy as well as expanding global collaboration in the Asia Pacific area. It serves as a forum for the discussion of global problems such as regional integration, national challenges abroad, technological advancements as well as changes in the economy and industries. Vladimir Putin, the president of Russia, created the Eastern Economic Forum in 2015. Its headquarters are in the Russian city of Vladivostok. It is organised by the Russian government (Roscongress Foundation) and hosted at the Far Eastern Federal University in Russia. Every year, the session was attended by both the Russian president and the Japanese prime minister. This forum offers a venue for discussion of significant global economic problems. 

The 7th Eastern Economic Forum was recently held in Vladivostok, Russia. The forum serves as a venue for company owners to grow their operations in Russia’s Far East (RFE). “On the route to a multi-polar world” is the meeting’s main focus this year. The Russian Forum organizers are sure that the outmoded uni-polar model is being replaced by a new global order based on the core values of justice and equality and recognizing each state’s and people’s freedom to pursue their own independent development paths. Strong political and economic centers are emerging in the Asia-Pacific area, functioning as the catalyst for this unstoppable process.

Objectives of Eastern Economic Forum:

• To increase foreign direct investments in the RFE is the EEF’s main goal. Geographically, the RFE is situated in a key area that serves as a gateway to Asia. Natural resources like fish, oil, natural gas, wood, diamonds, and other minerals are abundant in the area, which makes about one-third of Russia’s total land area. An additional reason influencing people to relocate to and work in the Far East is the area’s limited population. 5% of Russia’s GDP comes from the wealth and resources of the area (Gross Domestic Product). The lack of staff makes it difficult to get and provide resources even though they are plentiful and accessible.
• One-third of Russia’s land is covered by this region, which is abundant in natural resources like fish, oil, natural gas, wood, diamonds, and other minerals. Russia is home to the second-biggest coal reserves, the eighth-largest oil reserves, and the largest natural gas reserves in the planet. It is a significant producer and exporter of natural gas, as well as the second- and third-largest producer of oil.
• Another reason attracting people to go and work in the Far East is the area’s low population.
• The wealth and resources of the area make up 5% of Russia’s GDP. By the end of 2022, Russia’s GDP is anticipated to reach $1400.00 billion USD.
• To rely on China and other Asian powers for assistance in order to survive the economic crisis and the sanctions.

Significance of the Eastern Economic Forum:

• India’s involvement will aid in democratizing this area, somewhat reducing the influence of China.
• Indian companies have a better opportunity of establishing a long-lasting presence and infrastructure by making investments in a variety of industries, including as ports, auto corridors, energy corridors, aviation, mining or minerals, and petrochemical industries, among others.
• The Chinese invasion in the eastern Ladakh border regions not only marked a turning point in India-China ties, but it also showed that Russia had the ability to help ease tensions with China.
• In order to acquire credibility in the success of the Eurasian Economic Union and re-establish its hegemony, as it did during the Cold War, Russia is attempting to use India’s soft power.
• Russia is in favor of India’s application for permanent membership in the Nuclear Suppliers Group and a revamped UN Security Council.
• Russia has been a longtime ally of India. In addition to providing armaments to keep up a formidable military profile, Russia has offered India with priceless diplomatic support on a range of regional concerns.
• India’s reliance on China for essential raw commodities, such as rare earth elements, will decrease.
• Backward and forward connections brought on by Indian investments and economic integration in this area.
• The Act Asia approach is mostly based on connectivity, commerce, culture, and economic prowess.
• A venue for communication with China to discuss issues including marine security, trade, and economic (rules of origin).
• Using a robust supply network, India can increase its cultural democracy and soft power outside of the Indo-Pacific region.
• Addressing the issue of becoming a manufacturing hub and achieving self-sufficiency, such as through space, defense, and deep sea research, etc.
• Combating China on a number of fronts and assisting Russia in reviving its economy as a friend in the face of war-related sanctions.

India on the Eastern Economic Forum:

• India also provided a $1 billion line of credit in 2019 to help the area expand its infrastructure.
• Russia recognizes India as a country with cutting-edge nuclear technology. With Russian aid, India’s Kudankulam Nuclear Power Plant (KKNPP) is being built.
• PM Modi stated the country’s openness to increase trade, connectivity, and investments in Russia during the event.
• In the areas of energy, pharmaceuticals, maritime connectivity, healthcare, tourism, the diamond industry, and the Arctic, India is eager to expand its partnership.
• The largest city in the Russian Far East, Vladivostok, will eventually be connected to Chennai’s port.
• As an alternative to the Suez Canal, this would give both India and Russia a maritime route. The Chennai-Vladivostok route has gained considerably more significance with the Suez Canal blockade in early 2021.
• A good response to China’s dominance in the South China Sea and, consequently, the One Belt One Road program, might be the establishment of the Chennai-Vladivostok sea route.

Major Participants in Eastern Economic Forum:

• China: China is the largest investor in the area because it sees opportunity in promoting the Polar Sea Route and the Belt and Road Initiative in the RFE. 90% of the overall investments in the region are made by China.
• South Korea: South Korea has made investments in shipbuilding, electrical equipment manufacturing, gas liquefaction plants, agricultural output, and fisheries.
• Japan: Another important trading partner is Japan. It made $16 billion in investments across 21 projects in 2017.

Challenges for Eastern Economic Forum:

• Blockage of supply chain due o Russia-Ukraine war.
• About 90% of investments in this region originate from China, demonstrating the country’s supremacy.
• India is unable to compete with China’s scaled investment.
• Although it will assist India in diversifying its energy requirements, the overall logistic costs associated with extracting and shipping the raw materials, crude oil, etc. will mount.
• India may be forced to compromise on a number of fronts by many multilateral groups, such as the US effort IPEF and the RCEP.
• Because of territorial conflicts like the Senkaku Islands and US concerns about sanctions as a result of war, engagements in this region may harm the national interests of Japan, South Korea, and other countries.

Achievements of Eastern Economic Forum:

• From 217 agreements in 2017 to 380 agreements worth 3.6 trillion rubles were signed at the EEF.
• Nearly 2,729 investment projects are slated for the area as of 2022.

Conclusion:

The Eastern Economic Forum is an international organisation that works to strengthen ties between nations on the economic front. Due to this forum, Russia significantly aided India in improving their relations with China as well as their economic growth through increased mining production, advancements in the agricultural sector, and many other factors. The Russian city of Vladivostok undergoes this every year. It acts as a forum for member countries to debate a range of commercial concerns relating to regional integration, the global economy, and international problems involving Russia and other countries. India’s involvement in the EEF enhances its reputation as a dominant regional player with political and economic clout.