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The Russian Far East: Positive Scenarios and Negative Scenarios

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International Relations and Asia’s Northern Tier

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Abstract

Around 2007, Moscow initiated measures to accelerate the development of the Russian Far East as a national priority, featuring large-scale, state-funded investments in infrastructure. Yet, sanctions and low oil prices complicated the effort. The positive scenario rests on: new measures to improve the business climate, laws enabling “territories of accelerated development” and a “free port of Vladivostok,” and new Chinese interest, despite hardening conditions for investment. The negative scenario points to: 1) commodity prices; 2) China’s actions and Sino-Russian relations; 3) the relations of Russia with Japan, South Korea, and the United States; and 4) policies of the Russian government and local governments. Since 2014, Russian leaders have viewed foreign relations largely through the lens of geopolitics. Opportunities have been squandered with undue optimism about how things were about to change.

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Notes

  1. 1.

    “Vladimir Putin: The RFE Showed the Best Rates of Growth,” December 29, 2015, http://minvostokrazvitia.ru/press-center/news_minvostok/?ELEMENT_ID=3978.

  2. 2.

    Judging from the debate among US security specialists, economic strangulation of China by means of a naval blockade may be emerging as the optimal strategy for dealing with China in a major conflict. See, for example, Sean Mirski, “Stranglehold: The Context, Conduct and Consequences of an American Naval Blockade of China,” Journal of Strategic Studies36, no. 3(2013): 10–11. See also T. X. Hammes, “Offshore Control is the Answer” (US Naval Institute, December 2012), http://www.usni.org/magazines/proceedings/2012-12/offshore-control-answer.

  3. 3.

    “China’s Vice President: China Should Invest More in Russia,” ITAR-TASS, May 24, 2014, http://itar-tass.com/ekonomika/1212483.

  4. 4.

    National Development and Reform Commission, Ministry of Foreign Affairs, and Ministry of Commerce of the People’s Republic of China, “Vision and Actions on Jointly Building Silk Road Economic Belt and twenty-first-Century Maritime Silk Road,”March 2015, http://en.ndrc.gov.cn/newsrelease/201503/t20150330_669367.html.

  5. 5.

    Zheng Jinran and Wang Yanfei, “Low-grade Coal is Cheaper, but Poses Pollution Challenge,” China Daily USA, December 21, 2015, http://usa.chinadaily.com.cn/epaper/2015-12/21/content_22763854.htm.

  6. 6.

    Zhang Hongzhou, “China is Marching West for Food,” RSIS Commentaries, February 4, 2014, www.rsis.edu.sg/rsis-publication/rsis/2148-china-is-marching-west-for-foo/#.VVqlg5PmUqM.

  7. 7.

    Interview with Minister for Far East Development Alexander Galushka, December 28, 2015, http://www.eastrussia.ru/material/dalnevostochnyy-trillion-i-dalnevostochnyy-gektar/.

  8. 8.

    Dmitri Trenin, interviewed by Kommersant, September 25, 2012, www.kommersant.ru/doc/2029312.

  9. 9.

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  10. 10.

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  11. 11.

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  12. 12.

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  13. 13.

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  14. 14.

    “ТорговыйоборотмеждуКитаемитРФсократилсяократилгодуна 27,8% до $64,2 млрд

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  15. 15.

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  16. 16.

    “Russia is now China’s biggest oil partner—and it’s a huge problem for Saudi Arabia,” Business Insider, February 2, 2016, http://www.businessinsider.com/russia-vs-saudi-arabia-in-chinas-oil-market-2016-2.

  17. 17.

    “Китай стал клиентом лиендля российских нефтяников,” Экономика, January 19, 2016, http://www.1prime.ru/articles/20160119/823073650.html.

  18. 18.

    Oystein Tunsjo, Security and Profit in China’s Energy Policy: Hedging Against Risk (New York: Columbia University Press, 2013).

  19. 19.

    “Спустя 10 лет Россия добилась разрешения на экспорт зерна ерКитай,” ВЕДОМОСТИ, December 17, 2015, http://www.vedomosti.ru/business/articles/2015/12/17/621497-eksport-zerna-kitai.

  20. 20.

    “Food security: Asia’s critical balancing act,” East Asia Forum, February 2, 2016, http://www.eastasiaforum.org/2016/02/02/food-security-asias-critical-balancing-act/.

  21. 21.

    Alexei Lossan, “Japan, India top Asian investors in Russia - Eurasian Development Bank,” Russia Beyond the Headlines, January 19, 2016, http://rbth.com/international/2016/01/19/japan-india-top-asian-investors-in-russia-eurasian-development-bank_560475.

  22. 22.

    “China insurance fund to invest in Russia’s Yamal LNG,” Reuters, January 5, 2016, http://af.reuters.com/article/energyOilNews/idAFL3N14P1JG20160105; “Инвестиции Фонда Шелкового пути в Россию превысят $2 млрд после покупки 9,9% в «Ямал СПГ»,” ВЕДОМОСТИ, January 22, 2016, https://www.vedomosti.ru/business/news/2016/01/22/625050-fonda-shelkovogo-puti-yamal-spg.

  23. 23.

    “Владельцы ‘Сибура’ довольны нынешним составом акционеров кцШамалов,” euronews, January 20, 2016, http://ru.euronews.com/newswires/3130965-newswire/.

  24. 24.

    “Быстринскому ГОКу нашли покупателя,” ВЕДОМОСТИ, December 29, 2016, http://www.vedomosti.ru/business/articles/2015/12/29/622870-bistrinskomu-goku.

  25. 25.

    “«Металлоинвест» такитайская Hopu приостановили переговоры по Удокану,” ВЕДОМОСТИ, July 14, 2015, http://www.vedomosti.ru/business/articles/2015/07/14/600427-metalloinvest-i-kitaiskaya-hopu-priostanovili-peregovori-po-udokanu.

  26. 26.

    “У ‘Роснефти’ и CNPC возникли разногласия по условиям продажи доли олВанкоре,” Интерфакс: новости, May 5, 2015, http://www.interfax.ru/business/440074. See also, “Interview with Rosneft CEO Igor Sechin,” Vesti Ekonomika, June 22, 2015, http://www.vestifinance.ru/articles/59048.

  27. 27.

    “Индия идет на Ванкор,” Kommersant.ru, November 2, 2015, http://kommersant.ru/doc/2845836.

  28. 28.

    “Уроки китайского,” Kommersant.ru, February 6, 2016, http://kommersant.ru/doc/2910600.

  29. 29.

    “Улюкаев: говорить о переориентации российской экономики на Восток неверно,” NEWSru.com, February 1, 2016, http://newsru.com/finance/01feb2016/ulyukaev.html.

  30. 30.

    Ibid.

  31. 31.

    Kommersant.ru, http://kommersant.ru/doc/28965556.

  32. 32.

    “Russian sanctions could be gone in a few months, John Kerry says,” CNN, January 22, 2016, http://money.cnn.com/2016/01/22/news/russia-ukraine-sanctions-john-kerry-davos/.

  33. 33.

    Rens Lee and Artyom Lukin, Russia’s Far East: New Dynamics in Asia Pacific and Beyond (Boulder, CO: Lynne Rienner, 2016).

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Lukin, A., Rozman, G. (2018). The Russian Far East: Positive Scenarios and Negative Scenarios. In: Rozman, G., Radchenko, S. (eds) International Relations and Asia’s Northern Tier. Asan-Palgrave Macmillan Series. Palgrave, Singapore. https://doi.org/10.1007/978-981-10-3144-1_12

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