The Eastern Economic Forum

Russia hosted the seventh Eastern Economic Forum (EEF) in Vladivostok from September 5 to 8.

The fourday forum is a platform for entrepreneurs to expand their businesses into Russia’s Far East (RFE).

The EEF was established in 2015 to encourage foreign investment in Russia’s Far East (RFE).
As of 2022, almost 2,729 investment projects are planned in the region.
The agreements focus on
- Infrastructure
- Transportation projects
- Mineral excavations
- Construction
- Industry
- Agriculture

Economic opportunities:
- The region is rich in natural resources, particularly diamonds, gold, oil, natural gas, coal, timber, silver, etc.
Strategic importance:
- The RFE is geographically located in a strategic location; acting as a gateway into Asia and the Arctic.
- The Russian government has strategically developed the region with the aim of connecting Russia to the Asian trading routes.
Employment opportunities:
- The sparse population living in the region is another factor in encouraging people to move and work in the Far East.
- Indian professionals like doctors, engineers, and teachers can help in the region’s development.
Energy security:
- The area is rich in hydrocarbon reserves. ONGC Videsh has already invested in the Sakhalin-1 project.

China:
- China’s investments in the region account for 90% of the total investments.
- China is the biggest investor in the region as it sees potential in promoting the Chinese Belt and Road Initiative and the Polar Sea Route in the RFE.
South Korea:
- South Korea has invested in shipbuilding projects, manufacturing of electrical equipment, gasliquefying plants, agricultural production and fishing.
Japan:
- In 2017, Japanese investments through 21 projects amounted to $16 billion.
- Japan identified eight areas of economic cooperation and pushed private businesses to invest in the development of the RFE.
India:
- India seeks to expand its influence in the RFE.
- During the seventh forum, the Prime Minister of India expressed the country’s readiness to expand trade, connectivity, and investments in Russia.
- In 2019, India also offered a $1 billion line of credit to develop infrastructure in the region.

Rough Climate:
- The climate may not be suitable for all sorts of projects and also deter potential investors.
Chinese Presence:
- The area borders China and has the presence of Chinese elements, which may prove to be a hindrance to Indian interests.
Low Population:
- A lack of population in the area means low labour rates and thus a higher cost of employment.
Distance:
- The area is remote and lacks connectivity to major Indian hurdles for Indian trade and investments.

Content Source: The Hindu