Mikhail Mishustin: “This sphere influences many processes in our country, including investment, dynamics in the manufacturing industry, the pace of implementing innovations, the utilisation of production facilities and, ultimately, the individual incomes in our country.”
Opening remarks by Mikhail Mishustin:
Strategic session to advance foreign trade
Good afternoon, colleagues.
Today, we will discuss foreign trade-related priorities. This sphere influences many processes in our country, including investment, dynamics in the manufacturing industry, the pace of implementing innovations, the utilisation of production facilities and, ultimately, the individual incomes in our country.
The global economy is undergoing sweeping transformations. Current geopolitical realities have radically changed the balance of power. The primary issue is about the growing opposition between the developed and the developing economies, where the latter are increasingly and adamantly upholding their trade, production and technology interests.
Changes at the global level are picking up momentum. The fact that the share of G7 countries in the global GDP in terms of purchasing power parity was lower than that of the BRICS countries last year is a telling sign. According to the IMF, it was 30.3 percent vs. 31.5 percent. This gap may widen as the year draws to an end. Also, the G7 countries have accumulated enormous public debt, which will sooner or later impact trade and investment.
The redistribution of economic capability for the benefit of the new leaders is underway which gives rise to aggressive protectionism on the part of those who are clearly trying to maintain the status quo, hence, the attempts to contain competitors in the economy and in technology.
Of course, these attempts will lead to nothing good, but instead kill credibility and increase the conflict potential in the global economy.
Other factors such as innovation technologies, digitalisation and climate change are also affecting the situation. Additional risks arise for global trade and for the supply of Russian goods and services to international markets.
In late 2022, the President set a goal to expand foreign economic cooperation with promising partners from friendly countries. The share of such countries in our trade has been growing dynamically from 56 percent to 80 percent in a matter of 12 months.
Despite the sanctions pressure, we are strengthening cooperation with our constructively-minded partners, primarily our partners from the EAEU, the CIS and the SCO, as well as the BRICS countries, and the countries from the Asia-Pacific region, the Middle East, Africa and Latin America. Over the first nine months of this year, trade with these countries was up by 21 percent. In monetary terms, trade with China, Türkiye and India saw the greatest improvements. Belarus, Kazakhstan, Uzbekistan, the United Arab Emirates and Brazil are among the leaders as well.
By 2030, the share of trade with friendly countries could exceed 90 percent. Thus, the role of those who are now trying to contain Russia will be minimised. Of course, it would not be quite right to break off cooperation with them altogether. Russia has repeatedly made it clear that it would welcome all foreign partners who are willing to continue constructive cooperation. We will apply a diversified approach to this group of countries, guided primarily by our interests and our counterparties’ willingness to work under the new circumstances on the basis of mutual respect and consideration for each other's interests.
The head of state instructed the Government to draft a medium-term foreign economic activity strategy. Today we will define the basic parameters with account taken for its prospects and potential challenges.
We need to maximise the potential for cooperation with our traditional strategic partners.
There are a number of major challenges to be tackled. We need to continue to reorient external flows. To do so, within the framework of the national goals identified by the President and national projects and state programmes, we are expanding the transport infrastructure. This includes the reorientation of Russian energy exports from the West to the east and south. The issue is about pipelines, highways, and railways, as well as sea and river ports.
Special attention should be paid to expanding international transport corridors that run across the territory of the Russian Federation.
Once the logistics projects are in place, Russia will secure its presence in Africa and Latin America. These are very promising markets for promoting domestic technologies, products and services, including exports of education and healthcare.
Of course, it is important to increase the number of seagoing vessels under the Russian flag, as well as domestically registered aircraft.
In order to keep our economy competitive, it is important to not only ensure stable exports, but also to expand the flow of imports so that Russian companies can have access to critical raw materials, manufacturing equipment and parts and components.
Creating a new financial architecture that is independent from the diktat of third countries is another crucial goal. Difficulties with international transactions under foreign trade contracts are among the main obstacles to expanding foreign economic ties.
Banks from friendly countries are concerned about secondary sanctions. Considering this, it is vital to step up the efforts to develop alternative systems for transmitting financial information, and to increase the share of national currencies in our transactions. We expect this to increase by almost a quarter, up to 65 percent, by the end of this year and with our core countries, it will be close to 70 percent. By 2030, the share of national currencies in mutual transactions with foreign countries should be up to 80 percent or more.
It is imperative to make the Russian payment and transaction infrastructure compatible with that of our key partners, to ensure the widest possible use of the Mir system, and to provide insurance support for commercial transactions.
Colleagues!
We are facing serious challenges in foreign trade. At the same time, we need to see and open new opportunities for the country in order to stimulate economic growth, increase investment and create new jobs.
