No matter Western sanctions, Russia remains a global trading partner

ST PETERSBURG – Western Sanctions continues to decline and even continues to increase, but President Vladimir Putin say Russia remains a major partner in world trade. Despite all the obstacles and what it calls illegitimate sanctions imposed by the West, Russia is developing the logistics and geography of its international cooperation.

This was conveyed by Putin at the 27th St Petersburg International Economic Forum (SPIEF) last weekend. The country is one of the leading economies ahead of Germany, Putin said, referring to data that takes purchasing power into account.

The West is known to have imposed unprecedented sanctions on Russia as punishment for Putin’s war against Ukraine, which has been going on for more than two years.

About three-quarters of Russia’s foreign trade is currently carried out with friendly countries. Since the West imposed trade bans in many regions, Russia has oriented itself economically towards China in particular, but also towards India, Africa and Latin America.

In his speech to hundreds of guests, Putin also called for expanded cooperation in technology transfer and announced attractive growth prospects for investors from abroad.

The Russian President also said that the development of a payment system independent of the United States would continue. In addition, Russia wants to double shipping traffic on the Northeast Passage through the Arctic Ocean from the 36 million tonnes moved last year to as much as 150 million tonnes.

“In the future, transportation could increase to 150 million tons,” Putin said.

The 36 million tons exported last year consisted of products transported on the northern sea route between Europe and Asia. Russia is expanding sea routes along its northern coast and building land transport routes to its Arctic ports, Putin said.

The Arctic route between Europe and Asia is significantly shorter than the route through the Indian Ocean, but is blocked by ice at this time of year. Climate change is extending navigable time.

One use Russia is putting on the route is transporting liquefied natural gas (LNG) by ship from the port of Sabetta on the Yamal Peninsula in Siberia to customers in Asia.

Despite limited economic contacts, many entrepreneurs from Western countries attended the forum, including from the US and the European Union. Western experts point to the relatively strong state of the Russian economy, largely due to the huge increase in the war economy.

(acres)