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"Eastern polygon" activates demand
Basil KoltashovHead of the Center for Economic Research, Institute of Globalization and Social Movements (IGSO)
- Large projects are needed to stimulate the economy in Russia. The Eastern Polygon infrastructure and transport project should theoretically connect a number of areas, such as the timber industry, mining, mechanical engineering, that is, the entire manufacturing industry and the innovation sector, because numerous equipment will be required. It will be very good if the orders are received by Russian enterprises.
The world market does not stretch the Russian economy, it does not come to the rescue and does not say: "All problems will be solved by increasing the demand for Russian products." At the same time, there are problems of geopolitical order. The conflict with the European Union and the United States is jeopardizing the established trade relations with these countries, primarily European ones, because it becomes unclear whether stable supplies of Russian raw materials to these markets will continue, whether competition with Russian goods will intensify, or whether Russian raw materials will be squeezed out. Under these conditions, Russia is making a turn to the East, and rapprochement with China begins. By the way, China has also received a serious lesson recently. That is why Chinese investors are interested in working more actively in Primorye and Siberia.
In 2012, the economic blockade of Iran took place, and the EU, the US and their partners demonstrated to China that its sea communications can be easily cut off, and China is enormously dependent on imports. Despite the fact that China pays a huge amount of steel, it produces a huge amount of ore and coal, it constantly lacks raw materials. In these conditions, there is only one country that is able to provide China with stable and reliable supplies - Russia.
The "Eastern polygon" can make changes in the direction of the world flow of goods, at least on the scale of Eurasia - the largest and most developed economically continent in the world. The project really has a great Eurasian significance. It is interested in South Korea and other countries that would like to use railroads for the delivery of goods. Russian companies are also planning numerous investments in the extraction of various natural resources in this region.