7TH EASTERN ECONOMIC FORUM (EEF)

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• Recently, Russia hosted the 7th Eastern Economic Forum (EEF) at Vladivostok.
• The forum is a platform for entrepreneurs to expand their businesses into Russia’s Far East (RFE).

Eastern Economic Forum

• The EEF was established in 2015 to encourage foreign investments in the RFE.
• The EEF displays the economic potential, suitable business conditions and investment opportunities in the region.
• Agreements signed at the EEF increased from 217 in 2017 to 380 agreements in 2021, worth 3.6 trillion roubles.
• The agreements focus on infrastructure, transportation projects, mineral excavations, construction, industry and agriculture.

Objectives:

• Russia has strategically developed the region with the aim of connecting Russia to the Asian trading routes.
• With the fast modernisation of cities like Vladivostok, Khabarovsk, Ulan-Ude, Chita and more, Russia aims to attract more investments in the region.
• To survive the economic crisis and the sanctions with the help of China and other Asian powers.

Significance of the RFE

• The region encompasses one-third of Russia’s territory and is rich with natural resources such as fish, oil, natural gas, wood, diamonds and other minerals.
• The small population living in the region is another factor for encouraging people to move and work in the Far East.
• The region’s riches and resources contribute to 5 % of Russia’s GDP (Gross Domestic Product).
• But despite the abundance and availability of materials, procuring and supplying them is an issue due to the unavailability of personnel.
• The RFE is geographically placed at a strategic location, acting as a gateway into Asia.

Balancing Between the EEF and IPEF

• Since the coming together of countries like Myanmar, Armenia, Russia, and China for EEF seems like the forming of an Anti-Sanctions Group in the international order, India has vested interests in both the forums, EEF and IPEF (U.S.-led Indo-Pacific Economic Framework).
• India has not shied away from investing in the Russia-initiated EEF despite the current international conditions, where western countries impose Sanctions on Russia.
• At the same time, India has given its confirmation and acceptance to three of the four pillars in the IPEF.

SOURCE: THE HINDU,THE ECONOMIC TIMES,MINT