Part Two EEF Plenary Session

Let’s dive right in. Again, here’s the link to the transcript, video and photos.

Finally, I would like to give the floor to Li Hongzhong, a member of the Politburo of the Central Committee of the Communist Party of China and Deputy Chairman of the Standing Committee of the National People's Congress.

:(as translated)Li Hongzhong Dear President Putin! Dear Prime Minister of Laos Mr. Sonthathirath! Dear Prime Minister of Mongolia Mr. Zandanashatar!

Dear ladies and gentlemen! Friends!

I am very pleased to meet you in Vladivostok, the pearl of the Russian Far East, at the X Eastern Economic Forum.

This year, the Eastern Economic Forum is celebrating its 10th anniversary. Ten years ago, at the initiative of Mr. President Putin and with your personal support, the forum's illustrious history began.

Thanks to nine years of hard work, the forum has already become an important platform for promoting cooperation in the Far East and facilitating regional development.

The Forum provides a huge impetus for developing the potential of Russia's Far East and the economy of Northeast Asia.

The past nine years have witnessed not only the development of the forum, but also major achievements and breakthroughs in the history of China-Russia relations. Under the strategic leadership of Chinese President Xi Jinping and Russian President Vladimir Putin, political mutual trust is steadily deepening, and multifaceted cooperation between China and Russia is continuously strengthening.

The comprehensive nature, broad scope, and high quality of bilateral cooperation confirm the intensity of interregional ties and interaction. In this regard, I would like to highlight the high dynamics of cooperation within the framework of the Northeast China-Far East Russia format, thanks to the personal attention and efforts of the heads of state.

For many years in a row, China has maintained its status as Russia's largest trading partner and foreign investor in the Russian Far East. In 2024, trade between the Northeast of China and the Russian Far East reached 105.8 billion US dollars, accounting for 43% of the total bilateral trade volume and playing a significant leading role in Chinese-Russian trade.

Ladies and gentlemen! Friends!

This year is the 80th anniversary of the victory of the Chinese people in the war of resistance against the Japanese invaders, the victory in the Great Patriotic War, and the victory in the world anti-fascist war. 80 years ago, in the face of the evil forces of fascism, China, the Soviet Union, and other peace-loving countries and peoples stood firm in the defense of historical truth and justice, and gave a decisive rebuff.

China and the Soviet Union, as the main theaters of the Second World War in Asia and Europe, suffered enormous losses and made a historic contribution to the victory in the global anti-fascist war.

In May and September of this year, Chinese President Xi Jinping and Russian President Vladimir Putin participated in the anniversary celebrations of the victory in the global anti-fascist war in Moscow and Beijing, respectively, and spoke from the perspective of defending the outcome of World War II and international justice, calling on the world to remember history and shape the future.

Ladies and gentlemen! Friends!

Today, the world is undergoing tremendous changes, global challenges are not subsiding, and the lack of global governance is becoming increasingly urgent. Many issues are not limited to the internal affairs of a single country and cannot be resolved by a single country.

A few days ago, Chinese President Xi Jinping put forward an initiative on global governance at the SCO Plus meeting, which focuses on the epoch-making issue of how to form a global governance system and how to reform and improve global governance.

This serves as China's version of effectively responding to global challenges and deepening global cooperation, responding to the expectations of various parties, demonstrating the responsibility of a major country, and fostering a community with a shared destiny for humanity.

China and Russia are influential powers and constructive forces in support of global strategic stability and the improvement of global governance. We are ready to fully identify the advantages of neighboring countries, enhance close and consolidated cooperation with all countries in the region, including Russia, in the spirit of joint consultation, construction, and joint use, and work together towards a bright future of peaceful development and mutually beneficial cooperation. In this regard, I would like to express the following opinion.

The first is that peace and stability promote development. A peaceful, stable, and prosperous Northeast Asia is in the common interest of all countries in the region and is a shared aspiration of the people. China has long pursued a policy of friendship, advocated the establishment of good-neighborly and cooperative relations with neighboring countries, and supported the countries of the region in choosing their own development paths in accordance with their national realities. We are ready to deepen political trust and align interests, work together to ensure regional stability, and respond to common risks and challenges.

The second is that openness and tolerance contribute to prosperity. As the ancient Chinese wisdom says, openness leads to progress, while isolation leads to backwardness. In today's globalized world, no country can grow alone. We support an open, transparent, inclusive, and non-discriminatory multilateral trading system, advocating for an open regional economy and unlocking the potential of the world's natural resources and geographical advantages. We are ready to strengthen cooperation in production and supply chains, eliminate protectionism, and promote the free movement of capital, markets, and technologies in order to achieve economic integration in the region through joint consultations, joint construction, and joint use.

Third, mutual exchange and borrowing help to cement a common understanding. The spiritual closeness between our peoples is the foundation of our friendly relations. Our countries are connected by shared mountains and rivers, and our cultures influence each other. Our peoples maintain close ties, and our traditional friendship has deep roots in the past.

It is necessary to continue our friendly history, deepen mutual exchange and training, increase cooperation in the fields of tourism, education, youth, culture, and art, and constantly facilitate mutual travel of people in order to deepen good-neighborliness and friendship.

Ladies and gentlemen! Friends!

Chinese wisdom says: "When everyone joins forces, victory is inevitable." Peace and prosperity in our region are inseparable from the efforts of all parties. China is ready to "open its door" to share new development opportunities with all countries around the world based on the new results of China's modernization and its higher level of openness.

We are ready to deepen our good-neighborly relations and friendship with everyone, and to strengthen our mutually beneficial cooperation in order to share the benefits of development among all countries in the region for the sake of our beautiful common future.

I wish all participants a fruitful work. Thank you for your attention.

M. Rybakova: Thank you very much.

Following your speech, I would like to talk about your meeting yesterday. It was about Russia's decision to mirror China's visa-free travel. We discussed this, and you mentioned in China that China is abolishing visas.

I have a question right away. In general, the whole tourism story is, of course, beneficial for both the economies and the cultural cooperation of our countries. But I have a main question about the calculations, Vladimir Vladimirovich.

Look, for example, as a tourist, I want to go to China. I don't have a visa, and our Mastercard is blocked. Union Pay - I made a similar card about three years ago, but it's not working now. There are very few banks that can actually issue this card, and they only accept rubles, so it's a ruble-based payment. The only option is to use cash, exchange it, or find a more creative approach. Unfortunately, I haven't yet mastered cryptocurrency.

Do you think there are any prerequisites for making the payment systems between our countries clearer and more accessible?

I have the same question for Mr. Li Hongzhong.

V.Putin: First of all, I would like to say that the decision of the Chinese political leadership–-of course, the decision was made at the political level–-on the visa-free entry of Russian Federation citizens into the territory of the People’s Republic of China was unexpected for us, we had not known about it before, and it was especially pleasant.

And of course, this is a sign of friendship that we highly appreciate. Of course, this will contribute to a significant increase in mutual travel, the creation of more favorable business conditions, and, of course, the rapprochement of the two countries. This is an obvious fact.

In order to go to any country, including China, we understand that an ordinary person needs to do what? Go to one instance, go to another instance, bring documents, and so on. And now–-I got on a plane and flew. Right? That's all, and no bureaucracy. This will certainly contribute to the rapprochement of the two countries. And, of course, we will mirror this gesture of friendship and do the same.

As for tourist trips. Yes, the payment system requires additional improvement. We are doing this-doing it, so to speak, strenuously. Financial institutions operate at the highest level and on a commercial basis.

I don't want to comment on this right now, because I don't want to create any difficulties for future decisions with my comments. This is also due to the need to respect the interests of financial institutions that are under certain sanctions pressure. However, there are solutions available.

We understand perfectly well that we need to make it easier for citizens who travel on business trips. Of course, there are opportunities to use our Mir card, which is a given, as well as Chinese tools of this kind. We can combine these tools and use third-country cards. I assure you that the central banks on both sides are working on this.

During our delegation's visit to the People's Republic of China, the heads of financial institutions discussed these issues in my presence and in the presence of President Xi Jinping. They are engaged in dialogue and discussion with each other.

I'm sure there will be solutions.

M. Rybakova: So, we're waiting.

Mr. Li Hongzhong, we would like to hear some comments from the Chinese side regarding the calculations.

:(as translated)Li Hongzhong Thank you for your question.

The Chinese government has introduced a visa-free regime for Russian citizens. These are important outcomes and agreements between our heads of state. They are an important sign of the deepening and broad-scale development of Chinese-Russian relations.

I have just listened very carefully to President Putin's response. I believe that President Putin's response is very professional and sets us on the right track for further development.

I will not go into details either, but I believe that as soon as our countries work out the issues together thoroughly, we will definitely eliminate the difficulties, technical issues regarding the calculations. Therefore, we are confident in achieving our goals.

For example, the circulation of Chinese currencies, as well as the calculation. Of course, in China, we don't use cash much anymore—we just use our phones for payments. Therefore, it's a difficult [time] for thieves, as we don't use cash—it's just a method of payment.

When I came to Vladivostok, I also [had] a good impression, because I also used a phone here, just like in Beijing. This means that we already have a very good connection in the field of telecommunications.

At the next stage, we need to work on financial communications as well. I believe that with our joint efforts, we will definitely achieve these goals.

I just said something about Chinese-Russian cooperation. I mentioned that we need to achieve free movement of capital, market, and people. I am confident that we will definitely resolve this issue.

M. Rybakova: Thank you for your response.

Well, it seems that QR codes are my only hope.

I would like to move from such a good, friendly agenda to a less friendly one, and take us to another part of the world. You have already answered the questions of journalists at the press conference in China, which took place just the day before. I am referring to the Ukrainian crisis and everything related to relations with America, as well as the ongoing military operation.

Just the day before, yesterday, another meeting of the "coalition of the willing" was held in Paris. Personally, I didn't see any concrete decisions at the end of the meeting. So far, it's just a discussion about the deployment of a military contingent in Ukraine. However, Donald Trump has stated that he will make a call. The first question is, has he made the call yet? The second question is, how do you feel about the solutions proposed by the other side?

V. Putin: We have an open dialogue with President Trump. We have an agreement that we can call each other, get in touch with each other, and have conversations when necessary. He knows that I am open to these conversations, and I know that he is also open to them. However, we have not had any conversations as a result of these consultations in Europe. In fact, it has been difficult for me to engage in these conversations, as I have just returned from China and am currently in Russia. There are no communication issues here. First of all,

Secondly, regarding possible military contingents in Ukraine. This is one of the primary reasons for Ukraine's involvement in NATO. Therefore, if any troops are deployed there, especially during the ongoing hostilities, we assume that they will be legitimate targets for their destruction.

And if decisions are made that will lead to peace, to a long-term peace, then I just don't see any point in them being on Ukrainian territory, that's all.

If an agreement is reached, there should be no doubt that Russia will fully comply with it. We will respect the security guarantees that must be developed for both Russia and Ukraine. I will reiterate that Russia will certainly comply with these agreements. So far, no one has discussed this with us at a serious level.

M. Rybakova: So, we're waiting. Time will tell, as they say.

The next question concerns a peaceful settlement. You said the day before that you see potential in this and even invited Vladimir Zelensky to Moscow. However, the Ukrainian Foreign Ministry officially refused. I understand that I may be misunderstanding something, but can we expect any steps towards a peaceful settlement in the near future?

V.Putin: All the same, I would ask you to be closer to the topic of Asia-Pacific economic cooperation. But I understand that without solving such acute problems, cooperation in general has a burden, so these are legitimate issues.

What can I say?

First, it is true that not so long ago, the leadership of the Kiev regime spoke unflatteringly about us and ruled out any possibility of direct contacts. Now we see that they are asking for these contacts, or at least offering them.

I have repeatedly said that I am ready for these contacts. At the press conference in Beijing that you mentioned, I said that I did not see much point in it. Why? Because it would be almost impossible to reach an agreement with the Ukrainian side on key issues. Even if there is political will, which I doubt, there are legal and technical difficulties, which are that any agreements on territories must be confirmed in accordance with the Ukrainian constitution through a referendum. In order to hold a referendum, you need to lift the state of emergency, and a referendum cannot be held during a state of emergency. If the state of emergency is lifted, you must immediately hold presidential elections. After the referendum, if it is held, you must obtain a decision from the Constitutional Court, regardless of the outcome. However, the Constitutional Court is not functioning, as I understand it, the court has avoided making decisions regarding the legitimacy of the current government, and the head of the regime has ordered security personnel to prevent the President of the Constitutional Court from entering his office. That's the kind of democracy they have there. And the chairman of the Supreme Court is just sitting in prison on corruption charges. It's well known that there's a lot of corruption in Ukraine. But it's not very clear why they had to put the chairman of the Supreme Court in prison. Although it's clear that they've gone so far as to destroy the judicial system as a whole. This is another clear sign of the "democracy" of the current Ukrainian government. Therefore, this endless process is leading nowhere. Nevertheless, we have stated that we are ready for a high-level meeting.

Listen, the Ukrainian side wants this meeting and offers this meeting. I said: ready, please come, we will definitely provide you with perfect working conditions and safety, one hundred percent guarantee. But if we are told: we want to meet you, but you should go there for this meeting – I think that these are just redundant requests from them to our address.

I repeat once again: if someone really wants to meet with us, we are ready. The best place for this is the capital of the Russian Federation, the Hero City of Moscow.

M. Rybakova: Thank you for your response, Vladimir Vladimirovich.

Can I ask you one more question? And then we'll definitely talk about the Far East.

V. Putin: Please.

M. Rybakova: I would like to return to the topic of the special operation's root causes.

Literally, at the same press conference, you said that you didn't see any obstacles or problems in Ukraine's accession to the EU. However, on the same day, former Ukrainian President Yanukovych made a statement, and he was supported at the time, and we were on friendly terms. I understand that he also always spoke about his desire to look towards the West. Perhaps I didn't understand it correctly, but did you mean the same thing?

Vladimir Putin: I do not know how you understood. Now I will tell you how everything really works out, and it works out as follows. Indeed, Ukraine has set itself the task of joining the EU. And I repeat: this is a legitimate choice of Ukraine, how to build its international relations, how to ensure its economic interests, with whom to conclude alliances.

The problem for us at the time when Yanukovych was president was that Ukraine's integration into the European system of economic relations was associated with certain economic challenges for us, as Ukraine was part of the free trade zone, and we had open customs borders, which had certain consequences for us. Ukraine had to weigh the pros and cons of its economic relations with us, both in terms of direct monetary losses and cooperative benefits. This was a concern for President Yanukovych. He "counted and cried," because opening up markets to competitive, highly competitive European products was killing production in Ukraine itself and cutting off cooperation and trade ties with Russia. That was the problem. As far as I remember, he didn't reject the idea of joining the EU; on the contrary, he wanted to do so. I don't know what he said now, but I know for sure that he wanted to do so on terms that were acceptable to Ukraine.

It had nothing to do with us, except that it affected our interests in terms of cooperation. Otherwise, we have never opposed any integration efforts in Ukraine's European policy.

As for security issues, that's a different matter. At the time, President Yanukovych and the Ukrainian Prime Minister were opposed to Ukraine's integration into NATO, which directly affected Russia's long-term security interests.

What did they do? As a result of the coup d'état, they removed Yanukovych from power, removed a man who was against Ukraine's accession to NATO, and through a bloody coup in Kiev, they brought to power those forces that were in favor of Ukraine's accession and continue to hope for it. This is something we are completely opposed to.

Even though each country has the right to choose how to ensure its own security, such issues are not resolved without regard to Russia's own security, as there is a general rule expressed and recorded in European documents: the security of one country cannot be ensured at the expense of the security of another.

M. Rybakova: Thank you.

Russia, especially the Far East, which we are going to talk about now, naturally has enormous resource wealth. This includes fish resources. I came across some interesting statistics, and I just want to share them with you.

According to the figures, in 2024, the export of crab from Russia to China reached a historic high of over 41,000 tons. In comparison, the domestic market received approximately 8,000 tons of Russian crab during the same period. This creates a paradoxical situation where the crab is moving sideways, bypassing Russia and heading towards Korea, Japan, and China.

Do you think that there are enough processing facilities in the country at the ports so that they don't just catch it and sell it somewhere, take it to auctions, but actually make money from processing and sell it on the domestic market? Because, for example, live crabs are the most expensive, and as far as I know, all the live crabs are not heading in our direction.

V. Putin: It's not about prices, although this is one of the key issues.

In order to improve or increase the supply of this product to Russian regions, we need to solve the logistics issue first of all. How do we transport everything? Either by rail, which is expensive, or by plane, which is even more expensive. This is the problem. The delivery of seafood, such as fish and crab, goes to expensive restaurants. Why? It has to be transported by plane. If we could establish transportation and logistics accordingly, it would change the situation.

But I must say that in general, fish products here in the Far East, if I remember correctly, are 75 percent of the catch, not only of crab, but of all seafood. 75 percent of the total catch in the Russian Federation, and 65 percent of the processing is also done here.

Logistics is the most delicate issue today. We will work on it. We are currently paying serious attention to this and will increase our capabilities to distribute marine products, including crab, to all regions of the Russian Federation. This is a problem.

Moreover, according to the norms of the Ministry of Health, we still do not reach the standards of consumption of seafood and fish. In my opinion, we need 28 kilograms per capita per year, and now we are selling about 23-23. 5 kilograms per capita for Russian citizens. Therefore, there is something to work on here. We are thinking about it, and I hope this problem will be solved.

M. Rybakova: That's great.

Then, if we're talking about transportation and accessibility, in the Far East, domestic flights are not just a matter of comfort, but a matter of survival, as the distances are so great that there's no other way to reach certain areas.

I want to tell you a little story first. I have a friend who lives in Khabarovsk. He had to fly to Vladivostok on business, but there were no tickets to Vladivostok. I think everyone who lives here knows that it's quite difficult to get a ticket for a domestic flight. It's not that I really want to drive 750 kilometers. The drivers told me that they even take two extra tires with them just in case. In general, he takes a connecting ticket through Moscow, that is, he flies from Khabarovsk to Moscow, there he spends four hours at the airport, gets on the plane and, accordingly, flies to Vladivostok. He does all these procedures, and already on the approach to Vladivostok, because of bad weather, their flight is not landed, they are sent to an alternate airfield in Khabarovsk. That is, a person flew a day from Khabarovsk to Khabarovsk. It is clear that this is such a joke, but it seems to me that it explains a lot.

What do you think, when we will solve the issue with medium-range aircraft? I just came across the information today that the State Transport Leasing Company has signed an agreement on the supply, leasing, of 50 Baikal aircraft.

I may have missed something, but I don't see Yuri Petrovich Trutnev here. We talked to him, and he told me that there is no Baikal. So they bought a plane that doesn't exist yet. I'm a little confused. Maybe it would be a good idea to visit the General Prosecutor's Office's booth. So, Vladimir Vladimirovich, are these planes real or not? And what are the prospects for domestic flights in the Far East?

V. Putin: Unfortunately, after the Soviet era, when there was a fairly good network of local airlines, it was lost in the 1990s, and in the early 2000s, there was also little attention paid to this, and it was necessary, and still is, as you mentioned about your friend, to fly from one city, even a major city in the region, to another through Moscow. But we have already established a local airline. Of course, the key issue here is to provide it with medium-range vehicles for short flights. The Government, the Ministry of Trade, and our enterprises have many plans here.

Unfortunately, I have to agree that this is not being resolved as quickly as we would like. The Baikal and other small aircraft that are supposed to replace the An-2 are still being developed.

I won't hide the fact that we sometimes quarrel with some of our, as they used to say, responsible employees. They will have to speed up this work and implement these plans.

We have plans and specific models. They have already been launched and are flying, and I have seen them. However, we need to start mass production and get them on the lines. We will certainly do everything we can to speed up this process.

The fact that this is a problem and that it still exists is known. We will work on solving it.

I won't list everything now: it's the Baikal and a lot of other planes. They showed them to me, and I saw them in the air, but we need to move on to mass production.

M. Rybakova: Thank you very much.

You mentioned investment growth in your speech, and foreign investment has shown growth in ratios over the past four years.

What is my question? If we look at the overall investment climate and where these foreign investments come from, it is mostly from a few of the largest countries, including China.

In your speech, I also noticed that you paid a lot of attention to technological progress and the need to develop science-intensive and complex industries. However, it is no secret that most investments are still focused on resource-based industries, such as mining, oil, gas, coal, and the associated infrastructure.

Here, there is probably a logical question: is there any risk that we will get stuck in this raw materials trap, and that we will be seen exclusively as an investment partner of this kind?

V. Putin: No, there is no such trap and no such threats, that is, they would be there if we did nothing. You have noticed my speech, and there one of the main tasks, if not the main, not the central, not the key, is that we must give the region as a whole–-we are now talking about investments in the region–-an innovative character.

It's not our partners' problem that they invest in mineral resources. It's our problem. We need to create conditions for the development of innovative sectors of the economy, so that people who are needed to work in these areas come here. As I said, this is already a trend, and we need to create an appropriate environment.

I assure you that our partners will be happy to invest in promising enterprises that will benefit them as well. This is the only way it works. I am confident that we will implement all of these plans.

By the way, we have just discussed these issues with our friends and partners in Beijing. In general, we need to build our work, adjusting it to the high-tech sectors of the economy. That's what we're going to do. This is the future of our economies and our countries, and this is our common success. This also applies to the regions of the Far East.

M. Rybakova: Thank you.

I would like to ask about the economy in general…

V. Putin: By the way–-I looked at Mr. Miller–-when we are talking about mineral resources: this is also a primitive understanding that a hole was drilled and oil came out, and the same with gas. Here Mr. Mikhelson is sitting–-he knows what liquefied natural gas is. The technologies that he has achieved do not exist in the world–-this is a high-tech sphere. I say without any exaggeration, this is not a joke, this is not an exaggeration, not some kind of hyperbole. The same applies to the gas sector.

Gazprom's cooperation with our Chinese friends and partners is not limited to just supplying them. They have a so-called strategic partnership, which involves working together on high-tech areas, including the gas industry. There is a lot of work to be done to ensure that this cooperation is efficient and beneficial for both suppliers and buyers.

This work is being carried out as part of a strategic partnership between the companies involved, and it is progressing. Therefore, the only question is whether we should expand it to related areas and promising areas such as artificial intelligence and so on. Of course, we will do this.

We have an agreement with China in the field of aviation. I will now move to another city in Russia, where we will focus on engine manufacturing. We have plans in the aviation sector, and aviation is well represented in the Far East, both in military and civilian aviation. The Superjet 100 is produced in the Far East. We have opportunities for growth in both aviation and shipbuilding.

M. Rybakova: Thank you.

I want to joke that I didn't know how our plenary session would end or go, so I went to a job search website in Vladivostok. I didn't find any TV presenters among the job listings, but I was curious to see what was available. I thought, "Who is really needed, and what kind of professions are in demand here today?" Most of the jobs were for drivers, with salaries ranging up to 400,000 rubles, as well as managers and welders. I didn't find many IT specialists, Vladimir Vladimirovich. In fact, there were no IT specialists in the market's job listings. There was one developer position, but it was a bit sparse, to put it mildly.

According to the analytics that SberIndex recently provided, business turnover in the Far East is growing faster than the national average, as you mentioned, but this is mainly due to the establishment of large-scale production facilities and mining operations, while IT is lagging behind.

How do you think this problem can be solved, if employers really do have such a request? How can we bring these IT specialists here? How can we attract these highly qualified technology specialists to stay in the Far East and treat this region as their home rather than a temporary place?

V.Putin: I paid quite a lot of attention to this in my speech, and I have already said that young people are coming here, they see prospects, they are needed here, and there is such a trend. But it needs to be supported by the government, this trend, to be supported, to form a new image of the region's economic development, primarily through high technologies.

I don't know what you've found on the websites, but I know for sure that the heads of the companies that work here are constantly talking about this: there are not enough highly qualified specialists, for example, at Zvezda, in the shipbuilding industry, where we have never had such a large-scale fleet that we can build at Zvezda. We need aviation specialists here.

And, of course, we need to develop everything related to modern technologies, in order not only to develop the mineral resources of the Far East and the Arctic, but also to make this region a part of high-tech production in Russia as a whole. This is what we are focused on, and this will be the new stage of development for the region.

M. Rybakova: Vladimir Vladimirovich, then there's this story about crazy salaries for workers: a driver earns 400,000 rubles, and a welder earns 500,000 rubles. This is the other side of the coin, let's say. How do you think this issue can and should be resolved? Is it normal for them to want such money now?

V. Putin: It seems to me that the more people receive, the better.

M. Rybakova: I agree.

V. Putin: It does matter. I said that this is an economic category, because if the salary is higher, the person buys more, and more buying means more demand for our products in the market, because people tend to buy products produced by our enterprises, and so on. That is, this is also an economic factor and a positive factor. In addition, people start to live better.

M. Rybakova: Thank you.

Naturally, if we're talking about salaries, we also want to discuss the overall situation in the Russian economy. There were many statements made during the forum.

V. Putin: I'm not alone here.

M. Rybakova: Yes, I understand, Vladimir Vladimirovich. But you see, I have so many questions for you. I will definitely ask our guests about them as well. Now, I would like to focus a little on what is happening with the economy.

German Gref said that the Russian economy is experiencing technical stagnation. Do you agree with this?

V. Putin: No.

M. Rybakova: Herman Oskarovich, that's it for now.

V.Putin: He knows, we are in constant contact with him. He is a participant in many of our meetings, which are held, including with the Government, the Central Bank. Some members of the Government have the same opinion, related to the fact that the Central Bank is holding on, keeping a high rate, and it holds it in order to combat inflation.

You yourself complained about the prices in stores. The goal is to make prices fall not only in stores, but also among economic actors, so that they don't increase. We can talk about anything, but I don't want to make any assessments right now. I have my own opinion, of course, but I don't want to evaluate the Central Bank's work right now. By the way, our Central Bank is highly regarded in the international financial community. I can assure you that I know this firsthand.

But we are doing this on purpose. Last year [2023], GDP grew by 4.3 percent, and last year, it grew by 4.4 percent, and inflation increased. We need to solve macroeconomic problems, and to do this, we need to ensure a smooth and stable economic recovery in order to achieve macroeconomic stability and slow down price increases.

Yes, I know perfectly well, we talk about it every day, and we just talked about it yesterday. Some people think that we've already reached a point of overcooling, but the lending hasn't stopped. Ask Gref if lending has stopped. No, it hasn't. The pace has slowed down.

I know that the situation is difficult in some sectors, and the people sitting here understand this perfectly well. But everyone also understands that if inflation starts to overwhelm the economy, it won't be good, because it's impossible to predict anything even for ten days, let alone for years to come. This is a delicate issue. If you ask the head of VTB, he will also tell you that they are going too far and have already frozen things.

M. Rybakova: Andrey Leonidovich often complains about the key rate.

V.Putin: Yes. And the Ministry of Economic Development will tell you the same, and everyone is right in their own way. I am confident that we will eventually be able to resolve issues related to maintaining the necessary pace of economic growth and ensuring a minimum level of inflation. I believe that this is sufficient for such a discussion format.

M. Rybakova: Thank you.

I would like to address Mr. Somsay Siphandon. In 2021, Laos and China opened one of the largest railways, a high-speed railway. Discussions are currently underway to extend it to Thailand. This is a significant project that was both technically and infrastructure-wise challenging.

I have a question: is there any possibility, any chances, any prospects of linking it with the ports of the Far East? How can this be accelerated? Accordingly, this will accelerate both our trade and cooperation. How realistic is this? Perhaps something has already been discussed.

:(as translated)S.Siphandon As for transportation, we use a modern railway. It is much more modern than the railway we used many years ago.

As I have already said, we are turning from a landlocked country into a country that is interconnected with other countries. We cooperate with China in this regard.

As you mentioned, we are cooperating in the field of railways. We have successfully implemented this project. Of course, the coronavirus pandemic has somewhat hindered us, but we have been able to overcome these difficulties as part of our strategic cooperation.

In accordance with the relevant initiative, I am fully confident that there are agreements between Russia and China. If there are agreements between Russia, Laos, and China, we can transport products from Laos through China to the Far East, including Russia.

The railway can open up opportunities for cooperation between Russia and ASEAN, China and ASEAN, and provide access to the market for our products. I would like to emphasize that this is an alternative route that will be faster and more environmentally friendly.

Our government is considering the possibility of establishing sea routes to Vladivostok via China, perhaps via Hainan or a Vietnamese seaport. We have already reached some agreements.

This is a very good opportunity for us to cooperate with Vietnam. We don't have access to the sea, but we have this agreement with Vietnam, which allows us to reach both China and Russia.

As for Mongolia. We can also use a similar transport infrastructure to exchange products. And, of course, there are many advantages for the development of the railway network in Laos and China.

Thank you for your attention.

M. Rybakova: Vladimir Vladimirovich, is there anything you can say in response?

V. Putin: No, we are discussing this with our friends from Laos, and we also discussed it yesterday.

We are in contact with our partners from third countries, including Vietnam. We are really discussing all these logistical possibilities and talking about how we could expand them. In my opinion, the prospects are good.

M. Rybakova: As for the railway tracks here in Vladivostok, I know that this is a sensitive issue. I would like to see more of them and for them to be better. After all, railway logistics play a significant role in the Far East. Will there be any updates? You have also mentioned this.

Vladimir Putin: They don't take up much; they take up most of the entire infrastructure. This is the so-called Eastern polygon, this is the Trans-Siberian Railway, BAM, now a new road has been built in the direction of Magadan, to the Sea of Okhotsk. This is a very good project, and the results are good. We will continue to develop all this.

I talk about this all the time, and my colleagues talk about it too. This is one of the key areas of development for the Far East, and for the country as a whole. The volume of transportation has increased significantly. What more can I say? We will develop the Trans-Arctic corridor, and there is a lot to work on, together with the Northern Sea Route.

As for our friends in the countries of the Asia-Pacific region, I very much hope that all our efforts to develop transport logistics in the regions of the Far East will have a positive impact on our trade and economic relations with our partners, including our friends in Laos.

M. Rybakova: Thank you. So welcome, as they say.

I would like to mention that this is my first time in Vladivostok. And, of course, I am very impressed by the scale and the interesting nature of the city. Indeed, it is well-maintained and interactive, with plenty of things to see and a unique atmosphere. However, I took a short tour, and I was slightly surprised by the contrast. While the central cities of the region are beautiful and undergoing significant transformations, we will not see the Golden Bridge in Pevek.

What do you think can be done to make remote towns comfortable, so that they can also have their own authenticity and beauty, including infrastructure?

V. Putin: It's almost the same everywhere: the city center looks one way, and the outskirts look different. [It's] a matter for the city authorities, primarily the regional authorities, to think about developing our settlements in a way that makes it comfortable for people to live in any part of the city.

As for small towns, we have a whole program for the development of settlements. I think we have over 800 towns (I think it's 804) with a population of less than 50,000 people, somewhere around 50,000 people. This is a large program.

As for the development of small and medium-sized cities in Russia, there are many areas that are working quite effectively in small cities. Of course, it is necessary to expand all of these activities.

As for the Far Eastern and Arctic regions, we have a separate programme that covers 22 cities at the first stage. Appropriate resources have been allocated, development plans have been drawn up, and work has begun. I have mentioned some of the results briefly, but I believe that this is one of the key areas. We have just discussed this with our colleagues, who were at the beginning of the process and initiated it. It has proven to be very popular and effective.

If we are talking about the need to give a new impetus to economic development, as I have already said, we need to attract well-trained specialists to the region, who, of course, also need good social conditions: kindergartens, good schools, good education, and good healthcare. All of this should be developed in small towns as well.

I repeat, there is now a program for 22 cities, which is funded. Of course, we will expand this work.

M. Rybakova: We're talking about some stories about expenses anyway. I'm just gradually approaching the budget deficit. In 2025, it was planned to be around 1.2 trillion rubles, and it increased to 3.8 trillion in the summer, according to official figures. It's still September. Obviously, something may change by the end of the year. I've even heard a figure of up to 8 trillion rubles. Again, I'm not an economist, and I don't understand how feasible or realistic this is.

What do you think and how do you see this alignment happening? What mechanisms are already planned to be used?

V. Putin: I don't think so, I can say what I think, and I think this way. Yes, expenses are growing, this is due to plans for infrastructure development, including in the Far East, because they require large amounts of money. The same Eastern polygon, the development of the Baikal-Amur Mainline, the Trans-Siberian Railway, and so on, the development of port infrastructure, airports, and so on. Our expenses related to education, healthcare in the country as a whole, and expenses in the field of defense and security, including expenses related to the special military operation, are all expenses.

First of all, we need to work on the revenue side, and there is a lot to talk about here, not in terms of increasing the tax burden, of course, but simply in terms of improving production efficiency. We need to increase labor productivity, introduce the latest technologies, and improve production organization. I assure you that we have a lot to work on here, and there are countless opportunities.

But there are other things that can reassure us, and I assure you that there is nothing to worry about. Some of our colleagues in the government believe that we can increase this deficit, and there is nothing wrong with that. Why? Because our debt burden, both our external and internal debts, is not only acceptable, but also low, which ensures the stability of our entire financial system, including our budget system.

The budget is based on a balanced approach. This is not an easy task, it is a difficult task, it is a nervous task, if I may say so, because achieving a balance between different sectors of the economy is not an easy task. The government is doing a good job.

M. Rybakova: Vladimir Vladimirovich, I read here, by the way, at the forum sessions, that the Ministry of Finance and, I think, Sberbank – (Addressing G. Gref.) Yes, German Oskarovich? – within the framework of the budget, you want to introduce artificial intelligence now, and somehow artificial intelligence will help to form the budget. If I understand correctly.

Vladimir Vladimirovich, how do you feel about such implementations of artificial intelligence?

V. Putin: Positively. But artificial intelligence can only be an assistant, at least at the moment, at this level of development of technology in the field of artificial intelligence. Today, these tools can only be an assistant in decision-making, both at the level of the Central Bank and at the level of the Government of the Russian Federation.

M. Rybakova: Then I want to pass the ball to Mr. Lee.

China has made significant progress in the field of artificial intelligence. It is currently one of the leading countries in this area. In fact, the two most popular neural networks are the American and the Chinese. I am aware that China has been actively developing the platform economy for a long time. This is a completely new and innovative form of economic activity. We are also actively implementing these processes.

I have a question for you. How do you assess this leadership? And what does China plan to do to continue this cooperation between artificial intelligence and the government? What will it look like, and what is the plan?

: (as translated)Li Hongzhong Thank you for your question, dear host.

You have touched upon a very important topic. Artificial intelligence is a way for all of humanity to achieve progress. Artificial intelligence is a new productive force that drives our evolution, and it is very important to develop it. All countries around the world, including China, Russia, the United States, and others, are paying great attention to the development of artificial intelligence and the advancement of its technologies.

As President Xi Jinping said in 2023, there are only four main principles for the development of artificial intelligence in the world: the universal popularization of artificial intelligence, its further advancement, and the joint use of human and machine resources to promote these technologies in our lives. These are the principles that have been put forward.

In general, we will be implementing these areas in about three areas. These are scientific and technical innovations and scientific and technical development. Innovation is the central element of the development of the concept of artificial intelligence. It involves increasing computational power, creating neural networks, and developing models. This is related to the development of high technologies and the implementation of our high-tech development in general. It is also related to the training of specialists and personnel management. This helps us to prepare our workforce.

We are creating new platforms. The United States is, of course, leading in this area, but China is constantly making great efforts to gain an advantage in this field. For example, artificial intelligence. China's level of prediction and degree of monopolization in this area is already 60 percent. We are growing in terms of monopolizing artificial intelligence technologies by about 20 percent per year. This is, of course, our advantage. We are patenting these technologies. This is one of the key areas of development.

The second component. We are implementing our approaches by considering artificial intelligence as a way of developing humanity, as a way of achieving our well-being. As Chairman Xi Jinping said, he put forward the most important concept of the community of a common destiny of humanity in his speeches. We are committed to these ideas. And in this concept, one of the key components is a rich and powerful state, promoting universal welfare for all segments of the population.

We are steadily moving along this road of promoting high technologies. For example, the Chinese neural network DeepSeek. This model is already very famous. It allows you to achieve great results when using it. This is an advanced technology. We were able to reduce the cost of production in a high-quality way and thus overcome the threshold of achieving greater benefits at minimal costs. This, of course, is one of the ways to develop artificial intelligence.

The increase in the computing power of artificial intelligence, of course, offers us new opportunities. We have discovered completely new areas of its application, such as technologies like unmanned control and process control. Its open-source nature allows us to use these technologies effectively. By doing so, we can reach new heights in our work while simultaneously developing and implementing these artificial intelligence technologies. As we benefit from the use of artificial intelligence, we pay close attention to the environment and conditions necessary for its implementation.

All of this is aimed at increasing production and capacity.

Already, the field of application of artificial intelligence in production is also showing very high growth. Its capitalization reached 700 billion yuan, an increase of about 20 percent per year. And there are many areas that can help us improve the well-being of our people, develop these technologies everywhere, improve the lives of people throughout our territory, and spread these technologies in the interests of industries and enterprises. This, of course, gives us new advantages. The multidimensional and integrated use of such technologies is a key area of our country's development.

We have opened the door to the use of artificial intelligence technologies in people's lives, and we would also like to see these technologies develop in Russia, as you, Vladimir Vladimirovich, and our Chairman, Comrade Xi Jinping, have already discussed. We should actively use the platform of the Russian Far East and our territories to develop artificial intelligence in our countries.

Thank you so much for your attention.

M. Rybakova: Vladimir Vladimirovich, I will not ask whether it is possible to govern the country with the help of artificial intelligence.

I have a question: do you think it is possible to entrust the setting of the key rate to artificial intelligence, for example? Please forgive me, Elvira Sakhipzadovna [Nabiullina].

V. Putin: I have already said that I believe—I don't believe, I am certain–-that the capabilities of artificial intelligence can be used in any decision-making process, and they should be used in all decision-making processes in all areas, including the Central Bank's responsibilities. However, it is the individual who should make these decisions, and they should be held accountable for their actions. Artificial intelligence is merely a tool, and individuals should be responsible for their decisions. People should be the ones who work.

By the way, our Chinese participant, our friend from China—he has a high political rank, he is a member of the Politburo of the CPC Central Committee. But we have just heard that he gave expert assessments, in fact, these are expert assessments in a fairly serious field-–artificial intelligence. People should make decisions. And there should be such people in both China and Russia, including using artificial intelligence and developing these tools.

M. Rybakova: I hope that artificial intelligence won't replace me, at least not yet. I mean, those who do our work.

V. Putin: Why? There are neural networks, I think, and TV presenters.

M. Rybakova: I've been written off. But the human element, Vladimir Vladimirovich, will be lost if artificial intelligence starts asking you questions.

V. Putin: Or it will be improved using artificial intelligence.

M. Rybakova: Thank you.

Dear guests, does anyone have anything to add to the questions that have been raised? We are gradually approaching the finish line.

I have one last question, which is more of a philosophical question, Vladimir Vladimirovich, about the Far East, but it's not exactly an economic question.

That's the question. For some reason, I thought that the Far East really lives in the future, because it's 17:00 now, it's still morning in Moscow, and we're already in the middle of the day, or rather, it's getting closer to evening.

In general, the world looks rather strange today. Everyone is talking a lot about this – about turbulence and crises that are constantly breaking out, and this is not just about the Ukrainian crisis. What is happening in Israel and Palestine is also a big issue. There are many such points right now.

What do you think Russia's future is in this world? This is the first question. And the second. Do you think the world of the coming decades will be more Western or more Eastern?

V. Putin: It will be multipolar.

M. Rybakova: Thank you.

All I can do is thank you for trusting me to ask questions today.

And perhaps a little final story about how I am very grateful to the Far East for such a warm welcome.

Tomorrow, as Vladimir Vladimirovich has already said, many of us, and some of us already today, will be flying westward. Therefore, I would like to summarize and say that, as we discussed the two-headed eagle at the very beginning, our uniqueness and strength lie in the fact that we do not choose, but rather look and keep our eyes open in both directions. I believe that this is perfectly in line with the motto of the anniversary forum, which is about cooperation for peace and prosperity.

thank you very much.

V. Putin: For my part, I would like to thank all the participants: our foreign guests, my colleagues who are working with me today, the entire audience for their collaboration, because this is also work, and our charming host for organizing such an interesting discussion.

Thank you very much.

Maria Rybakova: Thank you. This is the best estimate. Thank you very much, Vladimir Vladimirovich. Easy flight for everyone, at least for [those] who are leaving today. [My Emphasis]

Too much focus on Russia and not enough involvement of the other panelists. I stand by my critique at the end of Part One. The information was deep and dense. I applaud Putin’s judgement that AI is a “tool” that humans must be responsible for. This took about 6-hours for me to translate and edit, so my mind isn’t focused much on the first part where most of the info was revealed. The plan remains, it’s underway, it gets reviewed and updated, and its well-funded. Plus, Russians are all for it, although I don’t know how comfortable they are about having Russian killing Americans as partners. IMO, it’s not the job of Russia, China or any other nation to help the Outlaw US Empire have a soft Imperial decline as it will certainly oppose any effort to neuter the rules-based system and enact a new system of governance.

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