«High-speed Railway»
Рус / Eng

Media about us

01 september

Vladimir Putin: Russian-Chinese relations are at the top and are moving forward

Russian President Vladimir Putin will visit China on September 2-3 by invitation of Chinese President Xi Jinping to take part in the celebrations of the 70th anniversary of the Chinese people's victory in the War of Resistance against Japan and the end of World War II. In his interview to TASS and Xinhua on the threshold of his visit he spoke about trade and economic relations between the two countries, similar development goals and ongoing international and regional challenges. “This is the year of the 70th anniversary of the Victory over Nazi. Both your father and President Xi Jinping's father fought in the wars. Your memories of the war are both your personal, family memories and memories of the whole nation. After Xi Jinping's visit to Moscow in May to attend the celebrations of the 70th anniversary of the Victory in the Great Patriotic War, you are going to Beijing to attend, on September 3, a big military parade dedicated to the Victory Day in the War of Resistance against Japan. What, in your opinion, does commemorating the Victory and the historic events mean for the contemporary world? What do you think of the contribution of the Chinese people’s War of Resistance against Japan in the overall victory over Nazism?” “It is true that the Victory anniversary means much for Russian and Chinese people. The Soviet Union paid for the victory with massive victims. Chinese people also suffered huge losses. We will always remember the heroism, strength and courageous spirit of the winners. At all times we will remember the fallen and honour the veterans. Our countries were allies against the Nazi and Japan's militarism and bore the brunt of the aggressors' attacks. They did not only withstand that terrible battle, but they won it, set the conquered peoples free and brought peace to the world. Mutual support of Chinese and Russian people during the hard years and common historical memory are a strong foundation of today's relations between Russian and China. Currently, both in Europe and Asia we see attempts to falsify the history of World War II, promote unsubstantiated and unproven facts or wrong interpretations of events, especially of the pre-war and post-war periods. Some countries took efforts to glorify and exonerate war criminals and their henchmen, which is an outrageous attempt to discredit the judgements of the Nuremberg and Tokyo tribunals. What else is it if not an insult to the memory of millions of those who fell in the war? While the purpose of such historical speculations is obvious: they are used for shady political games to split countries and peoples. Russia and China have similar understanding of the reasons, facts and outcomes of World War II. Both the memory and lessons learnt are sacred for our people. The tragic past calls us to take common responsibility for the world and realise the horrible consequences that the destructive ideology of own exclusivity and permissivism may have. That was the philosophy of Nazism and militarism. It is our duty to prevent such ideas from revival or spreading. It is, therefore, of top importance that our countries seek both to further defend historical truth and protect the common Victory. Joint celebration of the 70th anniversary of the Victory in World War II demonstrates our commitment”. “Recently, the global situation has featured dramatic events and developments, and some trends raise concerns. What do you think of the Moscow-Beijing relations in the current international climate? Can Russia and China facilitate creation of a new world order, and if yes, what should be the fundamentals, in your opinion?” “The international situation, unfortunately, is growing increasingly unpredictable. The independent process of creation of a new polycentric model of the world order is followed by growing regional and global instability. The key reason for such uptight and complicated situation is the deficit of compromises. There is no sustainable resolution of controversies between civilizations and religions. Global economy still does not develops stably. Among the systemic issues is the persistent desire of certain states to retain their dominance in global affairs at any cost. While promoting democracy, law and human rights in their home countries, they ignore such values in the international arena, thus discarding the principle of equality of all countries set forth in the UN Charter. In such complicated conditions of special focus is Russian-Chinese interaction aimed to preserve and strengthen global and regional stability and security and search for effective responses to global challenges. This is our vision of the joint work in the UN, Big 20, BRICS and SCO, which summits were successfully held in Ufa in July. Russian-Chinese union has played an important role in resolving such acute issues as Syrian chemical weapons withdrawal or the nuclear program of Iran. Russia and China are priority partners in promoting the principles of building an indivisible security and cooperation architecture in Asia-Pacific, enhancing trust in the space sector, and ensuring information security. Expansion of Russian-Chinese partnership meets our countries' strategic development goals. These considerations governed us in making a Joint Declaration on bridging Eurasian Economic Union and the “Silk Road Belt” this May. Here we talk about starting coordination of long-term development priorities to give a strong impetus to business activities in the wider Eurasian space”. “Trade and economic relations between Russia and China are generally “going uphill”, however, the Western sanctions still have a negative impact on the bilateral trade. Can the countries in the current situation achieve the set task to double the sales turnover? What areas are most promising?” “China is our key economic partner. In the past years, we could substantially move forward in all areas of economic and industrial cooperation. I wouldn't say that illegitimate restrictions imposed on Russia by certain western countries negatively affect Russia-Chinese economic interaction. On the contrary, it drives domestic business to build stable ties with China. All Western sanctions on Russia. Starting from 2010, China has been Russia's key trade partner. In 2014, despite unfavourable developments in global economy, we could prevent dropping of sales turnover, which totalled about $88.4 bn, with power engineering still as the leading industry. Out countries are consistent in building a strategic energy alliance, which, I am sure, will play a notable role in global economic relations. In 2014, we had real breakthroughs in the gas sector. Last May, during my visit to China, we contracted for annual supply of 38 bcm of Russian natural gas to China. It will be supplied through the “eastern” route for 30 years. To implement the project, we have already proceeded to building the Power of Siberia pipeline. This May, initial agreements were reached on the “western” route. The volume of exports through the pipeline will be 30 bcm per year. The two large projects are an indisputable short-term priority. There is a substantial progress in other energy cooperation segments. We have built and began operating an oil pipeline from Russia to China, signed agreements to increase oil supplied, and created joint ventures to explore and produce oil in this country. Chinese companies have joined gas projects on the Russian Arctic shelf and the Sakhalin shelf. There are good prospects for joint development of coalfields in the Far East. Nuclear energy cooperation is also developing rapidly. The first and second power units of the Tianwan Nuclear Power Plant, built by Rosatom, are demonstrating the highest efficiency and security among all Chinese nuclear power plants. We are currently involved in the construction of the station's third and fourth power units to be commissioned in 2018. As you can see, Russian-Chinese energy cooperation has a great potential. I think that the development of high-speed railways sector is one of the most promising areas. We have already agreed the terms of co-financing of Moscow-Kazan high-speed line. Jointly with our Chinese partners we plan to invest over RUB 1tn in the construction. We expect that the new line will be operational by 2020 and become a benchmark project for the Russian-Chinese cooperation in the field of transport and infrastructure. Cooperation in aircraft and space rocket engineering is also of top importance. There is an agreement on joint development of a wide-body long haul jet and a heavy-duty helicopter, and some other programs. China’s participation as a partner country in the INNOPROM 2015 International Industrial Fair in Yekaterinburg gave a new impetus to the close cooperation in science, technology and production. Both Moscow and Beijing are set to enhance financial partnership, including settlements in national currencies. We plan to expand interregional ties and cross-border cooperation, increase their practical effect and improve cross-border transport infrastructure. Russian-Chinese trade and economic cooperation. Investigation. Lately Russia has taken a number of measures to boost the development of its Far East regions, including, the creation of a free port in Vladivostok. In Ufa in July, you also encouraged Chinese companies to participate in the development of the Russian Far East. What do you think are the opportunities for Russian-Chinese cooperation here? How does Russia intend to attract Chinese investors? “It's true that the development of Siberia and the Far East is our national priority for the entire 21st century. We have already taken a number of significant steps to accomplish this grand-scale task. We are actively implementing a programme of social and economic development of the Far East and the Baikal Region, which includes dozens large investment projects, including the construction of the Power of Siberia gas pipeline, Vostochny space launch centre, gas refining and gas chemical projects outlined by Gazprom and Sibur, upgrade and expansion of the Baikal-Amur and Trans-Siberian lines, and the Zvezda shipyards. Russia certainly seeks to attract foreign, including Chinese, investors to participate in the projects. The Federal Law on Priority Development Areas in Russia has introduced a new tool both for the country in general and for the Far Eastern Region, where we already have nine such areas. Priority development areas, along with special economic zones, should become the drivers of economic transformations in the Far East, king of clusters that attract and accumulate investments and technologies. Substantial tax incentives and simplified business procedures in the areas help create favourable investment and business climate, regardless of the origin of capital. Resident companies will enjoy the following benefits: zero profit tax, property tax and land tax for the first 5 years, zero import and export customs duties, subsidies on loans, privileged rental rates, and simplified federal and municipal controls. For 10 years after obtaining a Priority Development Area (PDA) resident status, businesses will be subject to lower insurance payments (7.6% against of 30%). And zero VAT rate on imports for processing purposes. National and foreign companies will enjoy mineral extraction tax holidays: decreasing coefficient (0 to 0.8%) will be applied for 10 years. Administrative barriers will be minimised. Most important, the government undertakes to build the required infrastructure. According to the Russian Government estimates, investments in the first three priority development areas alone will total over RUB50 bn. The federal budget will also allocate significant funds (about RUB7.5 bn). Same broad transformations will be provided to investors in the south of the Primorye Territory, where we are introducing a free port regime that would cover all key ports from Nakhodka to Zarubino, including Vladivostok, of course. The law on free port will be effective as from October 2015. Here we intend to introduce significant tax privileges (up to a zero rate for some taxes). The business conditions are becoming as simple as possible, including for capital construction; and a visa-free regime for foreign citizens is on the way. Besides, a free customs zone procedure will also be in place in the free port, meaning duty-free imports of foreign goods. I am sure that the new opportunities will encourage investors from China and some other Asian countries to participate in our plans implementation, the more so that some large companies have already proposed certain investment projects. For example, our Chinese partners are ready to invest over RUB100 bn in the construction of an oil refinery and a clinker factory in the Amur Region, Nizhneleninskoye-Tongjiang and Blagoveshchensk-Heihe bridges, and a steelworks and a brick factory in Yakutia”. “In May, you signed a Decree on the annual Eastern Economic Forum in Vladivostok. What are your forecasts and expectations? What do the regional partners think of is?” “The St. Petersburg International Economic Forum held this June showed that, despite the sanctions imposed on Russia that hamper full-scale economic cooperation, the interest in Russia among foreign business circles has grown. More than 10,000 participants from 120 countries attended to the Forum. So we have no doubt that the first Eastern Economic Forum to be held in Vladivostok on September 3-5 will also attract our foreign partners, primarily from Asia-Pacific. The Forum's key task is to position Russia as an active participant in economic and integration processes in Asia-Pacific and to present potential joint projects to investors. Business circles in India, Vietnam, South Korea, Japan, Singapore and some other countries, geographically not referring to the region, have shown their interest in the Forum. We highly appreciate our Chinese partners’ intention to send a strong delegation of businessmen from over a hundred of top energy, mining, transport, agricultural, engineering and other companies, as well as representatives of financial majors, federal authorities and governors. We expect them to be active at the Forum”. “You said earlier that you have special feelings for China. After your election as President for the first term in 2000, you have visited China 13 times. What changes that you have noticed during the visits are most impressing? What do you think about China’s development?” “It's true, I was lucky to watch China “on the move”‘ for quite long. Each next visit I saw that your country have gained more economic power and achieved new targets in building an up-to-date infrastructure and in social development. At the same time, China cherishes its cultural and historic traditions, and everyone who visits your beautiful country can feel it almost everywhere. Of top importance are cultural heritage sites, which fully represent the ancient Chinese civilisation. My trip to the Shaolin monastery during my visit in 2006 was unforgettable. In particular, it is about changing the economic pattern to switch to high-tech sectors. Russia and China also have the same priority industries: nuclear energy, space exploration, new information technologies, energy saving, environmental protection, production of high-tech medicines and medical equipment, and some other. We have a huge potential for closer business cooperation and intensive humanitarian ties. What's important is that we are willing to leverage the opportunities with the growing bilateral interest and trust and stronger friendly ties. There is a lot we can achieve on this basis. And I am sure we will.

2017   2016   2015   2014   2013