Enter into growth: Putin — on the economy of high salaries and new projects with China and North Korea

The expansion of preferential Far Eastern and Arctic mortgages, the creation of a single preferential treatment for businesses starting in 2027, and the transformation of the Russian economy into a high-wage economy. Vladimir Putin made these and other proposals for the development of the regions and the whole country at the plenary session of the Eastern Economic Forum. The president also spoke about plans to develop the Transarctic Transport Corridor and international cooperation in the Far East, introduce a reciprocal visa-free regime with China and build new bridges with the DPRK. Such a major event could not do without the Ukrainian agenda — Vladimir Putin once again invited representatives of Kiev to Moscow for peace talks. Foreign media reported in detail on the Russian leader's speech at the WEF plenary session. The main statements of the president are in the material of Izvestia.

About plans for the development of the Far East

On September 5, Vladivostok hosted the main event of the X Eastern Economic Forum (WEF), a plenary session with Vladimir Putin. Hundreds of experts from various industries and guests gathered at the Far Eastern Federal University campus to discuss the development of Russia's largest region and the prospects for its cooperation with other world powers. The anniversary WEF brought together participants from more than 70 countries. The podium with Vladimir Putin was shared by the Prime Ministers of Laos, Songsai Siphandon, and Mongolia, Gombozhavyn Zandanshatar, as well as a member of the political Bureau of the CPC Central Committee, Li Hongzhong, with whom the president held bilateral meetings the day before.

The focus of the forum, as before, is the Far East. The President called it a strategically important region, so its development has become a priority for Russia.

— This year the forum is being held for the tenth time. Let me remind you that the very idea of its organization was realized along with the beginning of a new stage in the development of the Far East, the great work that is designed to create wide opportunities for citizens, young people, and above all for business, to fully unleash the resource, industrial, and logistical potential of this strategically important region of Russia, and to improve the quality of life of Far Easterners. Vladimir Putin.

The pace of development of the Far East is already ahead of the national ones in a number of indicators, but it should be at the forefront of the country's digital development, the president said, instructing the government to prepare appropriate proposals.

Improving the quality of life should attract personnel to the region who will participate in technological projects. There has already been considerable success in this area: the authorities have not only managed to reverse the trend of population outflow from the Far East, but also to increase the influx of young people from 20 to 24 years old. Against this background, it has already been decided to open university campuses in Yuzhno-Sakhalinsk and Petropavlovsk-Kamchatsky, Yakutia, Khabarovsk, Blagoveshchensk, Ulan-Ude and Chita. "It is in the Far East that the future of our country is being created, and young people feel it, see it, and react accordingly," the head of state said.

In matters of demography in any region, housing is a key issue. And in the families of the Far East, by the way, the birth rate of the third and subsequent children is 25% higher than the average in Russia. Vladimir Putin proposed expanding Far Eastern and Arctic mortgages to the secondary housing market in cities where apartment buildings are not being built. The rate on it will be 2%, said Alexey Chekunkov, head of the Ministry for the Development of the Far East and the Arctic. Benefits will now be available to all large families in the region, regardless of the age of the parents, as well as all employees of educational institutions. In general, the standard of living is rising here: The poverty rate has decreased, and the average salary has increased 2.5 times in 10 years, exceeding 100,000 rubles per month.

All this is happening against the background of the growth of the regional economy. For example, the GRP of the Far East has also increased more than 2.5 times in 10 years, from 4 trillion to 11 trillion rubles. Some regions of the Far Eastern Federal District are also showing significant success. Primorye's GRP grew by 13%, Oleg Kozhemyako, the governor of the region, told the president. "Vladivostok is being dynamically built, we are 1 million 300 thousand. We rent out [square meters] of housing in the region as a whole," the head of the region reported.

In a number of subjects of the Russian Federation, the development of the economy is hampered by natural disasters. In particular, at the end of July, Kamchatka experienced the most powerful earthquake since 1952. As a result, about 1,400 buildings in Petropavlovsk-Kamchatsky received various damages, Vladimir Solodov, Governor of the Kamchatka Territory, reported to Putin. At the same time, there are no fatalities, and all the consequences of the incident are being successfully eliminated.

About the development of the Russian economy

Among the important economic innovations is Vladimir Putin's proposal to launch a single preferential business regime throughout the Far East and the Arctic starting in 2027. The parameters have yet to be determined by the government, but wherever an investor comes — to any Far Eastern or Arctic region, city, village — he will be entitled to benefits everywhere, the head of state explained.

The raw material base of the Far East and mining in the region are also expanding. For gold and coal, it has increased almost 1.7 times over the past 10 years, including due to the declarative principle of licensing the subsoil, the president said. Other resource potential should be used effectively, and not only in the Far East. Thus, Putin instructed the government to approve a strategy for the development of the rare earth industry in Russia no later than November. In particular, the accounting system for rare earths has been established so far.

— At the same time, it is necessary to carry out regular audits of such valuable components throughout the chain, including at the stage of processing and export in the form of concentrates. In addition, it is necessary to introduce advanced technologies for processing and processing ores of rare and rare-earth metals. And, of course, to stimulate demand for them inside Russia, in new industries," Putin said.

As the commodity sectors develop, it is necessary to solve the pressing problems in the form of inflation. So far, the Bank of Russia is trying to return to the target of 4%, the president reminded. During his speech, Vladimir Putin anticipated the need to lower the key rate and warned that if he did so abruptly, prices would rise. The President assured that the authorities are pursuing a stable macroeconomic policy, and this creates conditions for the country to move forward.

As for the budget deficit, it does not pose a threat to the country. Russia's debts inside and outside its borders are still quite low. "Some of our colleagues in the government believe that it is possible to increase this deficit — there is nothing wrong with that," the president said. At the end of August, Prime Minister Mikhail Mishustin announced that the budget deficit for the first half of the year amounted to 3.4% of GDP.

About international cooperation

Among the landmark events in the international arena, the president named the restoration of flights between Vladivostok and Pyongyang after the pandemic, as well as the launch of direct flights between the capitals. Moreover, the railway connection between Moscow and Pyongyang has recently resumed. Such decisions will serve to further bring the countries closer together, the president is confident. An important project for both countries, the bridge from Russia to the DPRK across the Tumannaya River, may be completed as early as 2026. As the Far East strengthens international relations, today it is necessary to upgrade and expand transport routes.

— We will continue to modernize the eastern landfill of the BAM and Transsib railways. In 2032, their carrying capacity should be 1.5 times greater than at the beginning of this year. Railway approaches to the seaports of the Far East will have to be further expanded," the president said.

Putin announced plans for the development of the Transarctic Transport Corridor. Russian and foreign companies are already showing interest in its construction from St. Petersburg to Vladivostok. Two potentially significant areas of TTK development are the creation of modern shipbuilding centers and the opening of direct access to Arctic shipping routes for cargoes from Siberia and the Urals.

At the same time, for the development of the TTC, which is a kind of transit through the Northern Sea Route, a number of key issues need to be resolved, Igor Yushkov, an expert at the Financial University and the National Energy Security Fund, tells Izvestia.

— There are two questions here: either we will carry it ourselves, or it will be the supply of goods from Europe, for example, to Asia. But here we are faced with the fact that the climatic conditions still do not allow us to use such a route all year round. From November to May, almost nothing goes there because of the large ice. For this, wider icebreakers are needed to leave enough wormwood behind. The issue of ship insurance is also important," he noted.

Russia is also ready to expand international cooperation in the Arctic, in particular, to work with the United States, Putin said. However, this requires a political decision from Washington.

So far, relations in the "Chinese" direction are actively developing. On Tuesday, Chinese Foreign Ministry spokesman Guo Jiakun announced that from September 15, 2025, China will introduce a trial 30-day visa-free regime for Russians for a year. Vladimir Putin called this decision a kind gesture from Beijing and promised to do the same for Chinese tourists.

"Of course, this is a sign of friendship, which we highly appreciate, and, of course, it will contribute to a fairly sharp increase in mutual trips and create more favorable business conditions, and, of course, the rapprochement of the two countries," he said.

Against this background, the issue of payments becomes even more relevant. Russia and China are already working on a system of mutual settlements. In order for tourists to have fewer problems with payment, Moscow and Beijing can combine the Mir card and its Chinese counterpart, the president shared his plans. Another way out may be to use cards from third countries.

On peace talks with Ukraine

Such a large-scale event as the jubilee Eastern Economic Forum could not ignore the Ukrainian agenda. It is currently impossible to reach agreements on key issues with Vladimir Zelensky, the Russian leader believes.

"Even if there is a political will, which I doubt, there are legal and technical difficulties," he said.

At the same time, Russia is ready for a summit with Ukraine and promises to guarantee the safety of Zelensky and representatives of Kiev if they decide to attend the meeting in Russia. "The best place for this is the capital of the Russian Federation, the hero city of Moscow," the Russian president stressed.

The United States remains one of the main mediators in the peace talks. Today, Vladimir Putin and Donald Trump can call each other at any time if necessary and have an open dialogue on all key issues. In particular, the head of the White House told reporters yesterday that he intends to talk with the Russian president in the near future.

Probably, the leaders of the Russian Federation and the United States will discuss the meeting of the "coalition of the willing" held in Paris, which was attended by the heads of European states, as well as Vladimir Zelensky and Trump's special envoy Steve Witkoff. One of the main topics was the security guarantees that Europe is ready to provide to Kiev. At the same time, it is important that such guarantees be worked out for both Ukraine and Russia, Putin stressed at the WEF.

— If these agreements are reached, let no one doubt that Russia will fully implement them. But, in any case, no one has discussed this with us on a serious level yet," the Russian president said.

It was the statements of the President of the Russian Federation about the Ukrainian crisis and its settlement options that received special attention from the foreign media. They describe in detail Putin's speech at the WEF plenary session. So, The New York Times noted that the Russian leader's assessments were made the day after the summit of the "coalition of the willing" was held in Paris. Le Monde highlighted Putin's thought about the pointlessness of sending foreign military contingents to Ukraine after the conclusion of the peace agreement. The words about the possibility of meeting with Zelensky in Moscow are highlighted by Sky News and Newsweek.

Moscow is not against reaching agreements with Kiev during a face-to-face meeting, but they should be worked out in advance, be real and allow concessions, Bogdan Bezpalko, a member of the Council on Interethnic Relations under the Russian president, told Izvestia. He believes that Vladimir Zelensky, whose term of office expired on May 20, 2024, cannot simply refuse to hold a meeting, so he is trying to set conditions in which Russia itself will declare its unwillingness to continue the dialogue.

Concluding his speech, Putin stated that the future world will no longer be a Western one, but a multipolar one. Such a model does not imply the emergence of new dominant countries, since all States should be in the same position.