President Putin recently made a bold claim: the Russian Far East will be vital for the future of the country. But why? Let’s take a closer look.
A Land Full of Riches
The Russian Far East is a massive region, covering nearly 41% of the country’s landmass. To put that into perspective, it’s almost the size of Australia! This vast territory is packed with valuable natural resources that are barely tapped. For instance:
- The region produces all of Russia’s antimony and nearly all of its diamonds.
- It also churns out 90% of the country’s borax, 50% of its gold, and over 40% of its tin.
- There are also vast reserves of coal, fish, seafood, rare earth materials, and even 30% of Russia’s forests – making it one of the world’s great “lungs,” similar to the Amazon rainforest.
Despite all this wealth, the Far East is sparsely populated. Its two biggest cities, Khabarovsk and Vladivostok, have populations of only around 600,000 people each. The entire region is home to just 8 million people, spread over a massive area. To encourage more development, Russia has introduced a program offering citizens a free hectare of land in the Far East to use however they see fit. The idea is to bring in more people and businesses to help unlock the region’s potential.
A Strategic Transport Hub
The Far East isn’t just rich in resources. It also plays a critical role in connecting Russia to the rest of the world. The famous Trans-Siberian Railway – one of the longest railway lines in the world – passes through here, connecting Europe to the Pacific Ocean. Another key railway, the Baikal-Amur Mainline, is currently being modernized and expanded. These railways are part of a broader vision to connect Europe and Asia, a vision championed by China’s multi-trillion-dollar Belt and Road Initiative.
On top of that, the Far East is home to key ports like Vladivostok, which link Russia to booming economies in Asia. This makes the region a crucial piece of the puzzle for global trade.
Industry Powerhouse
The Far East isn’t just about natural resources and logistics. It’s also becoming an industrial hub. Since 2015, Russia has set up 17 Priority Development Zones in the region, which make it easier for companies to do business. As a result, the Far East is now home to a wide range of industries, from shipbuilding and automotive factories to defense enterprises and food production plants. There’s even an aircraft manufacturing plant in Komsomolsk-on-Amur, showing just how diverse the region’s industries are becoming.
Growing Ties with China
Given its proximity to China, the Russian Far East is naturally a major player in the growing economic relationship between the two countries. In 2023 alone, trade between China and the Russian Far East hit nearly $34 billion – a staggering 54% increase in just one year! This makes up 14% of the total trade between China and Russia, with the two countries sharing a lengthy 4,209 km border in the region.
As ties with China deepen, the Far East is becoming a critical link between Russia and one of the world’s largest economies. And it’s not just China that’s important here. The region is also Russia’s gateway to the Asia-Pacific, one of the fastest-growing economic regions in the world.
Russia’s Gateway to the Future
President Putin’s speech at the Eastern Economic Forum highlights just how important the Far East is to Russia’s future. As the global economy shifts more and more toward Asia and the Global South, Russia sees its Far East as the key to staying relevant in this new world order. The region’s rich resources, strategic position, and growing industries make it a potential powerhouse, not just for Russia, but for global trade as a whole.
So, while the Far East may not be as well-known as other parts of Russia, it’s quickly becoming one of the most important regions for the country’s future. With its natural wealth and strategic location, it’s set to play a big role in shaping not just Russia, but the entire global economy in the years to come.
