Eastern Economic Forum (EEF)

Table of Contents

Eastern Economic Forum (EEF)- Relevance for UPSC Exam

General Studies II- Bilateral, Regional and Global Groupings and agreements involving India

Eastern Economic Forum-EEF: In News

Russia hosted the seventh Eastern Economic Forum- EEF Vladivostok. The four-day forum is a platform for entrepreneurs to expand their businesses into Russia’s Far East (RFE).

What is the Eastern Economic Forum(EEF)?

The EEF was established in 2015 aiming to encourage foreign investments in the RFE to display:

Economic potential
Suitable business conditions and
Investment opportunities in the region

The agreements focus on infrastructure, transportation projects, mineral excavations, construction, industry and agriculture.
With EEF, Russia is trying to attract the Asian economies in investing and developing the Far East.
This year, the Forum aimed at connecting the Far East with the Asia-Pacific

Eastern Economic Forum: Aim

The primary objective of the EEF is to increase the Foreign Direct Investments in 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 sparse 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 five percent of Russia’s GDP.

Eastern Economic Forum: Success

Agreements signed at the EEF increased from 217 in 2017 to 380 agreements in 2021, worth 3.6 trillion roubles.
As of 2022, almost 2,729 investment projects are being planned in the region.

Eastern Economic Forum: Major Participants

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.
China’s investments in the region account for 90% of the total investments.
South Korea has invested in shipbuilding projects, manufacturing of electrical equipment, gas-liquefying plants, agricultural production and fisheries.
Japan is another key trading partner. In 2017, its investments through 21 projects amounted to $16 billion.

Eastern Economic Forum: Russia’s response to China’s investment

Russia has been welcoming Chinese investments since 2015; more now than ever due to the economic pressures caused by the war in Ukraine.
The Trans-Siberian Railway has further helped Russia and China in advancing trade ties.
The countries share a 4000-km-long border, which enables them to tap into each other’s resources with some infrastructural assistance.
China is also looking to develop its Heilongjiang Province which connects with the RFE.
Both nations have invested in a fund to develop connectivity between the cities of Blagoveshchensk and Heihe.

Eastern Economic Forum: India and Russia

India seeks to expand its influence in the RFE.
In 2019, India also offered a $1 billion line of credit to develop infrastructure in the region.
During the forum, PM Modi expressed the country’s readiness in expanding trade, connectivity and investments in Russia.
India is keen to deepen its cooperation in energy, pharmaceuticals, maritime connectivity, healthcare, tourism, the diamond industry and the Arctic.

Eastern Economic Forum: Strategic significance for Russia

Gateway to Asia: The RFE is geographically placed at a strategic location; acting as a gateway into Asia.
Negating the Ukrainian war impact: The Ukraine war is a worrying issue as it affects the economic growth of the country.
Surviving sanctions: Although, the EEF is an annual gathering, the forum comes at an opportune time for Russia who is dealing with the impact of the sanctions.
Supply chain resilience: The IPEF will also play a key role in building resilient supply chains.

Conclusion

India understands the benefits of being involved in the development in the RFE but it also perceives the IPEF as a vital platform to strengthen its presence in the Indo-Pacific region.
India’s participation in the forum will help in disengaging from supply chains that are dependent on China and will also make it a part of the global supply chain network.