Russia's Integration into the global economy and its regional inequality of integration

1. 2. How does Russia's foreign policy affect its trade with the rest of the world?

1.1. Border war with Ukraine in 2014 --> Economic sanctions from EU and USA --> "retaliation" import bans from Russia towards these two --> diminution in imports and trade

1.2. The Eurasian Economic Union : Russia "reaffirming its sphere of influence", and increasing trade with its neighbours - trade tripled in the region

1.3. Improved relations and trade with China, and Africa : China-Russia trade exceeded $100 billion, and Russia is the first exporter of arms to Africa

1.4. Overall: Russian trade with the EU and the United States has decreased, notably due to the Ukrainian border conflict of 2014. Russia seeks to turn to closer ties with China and Africa for trade.

2. 4. What are some actions Russia has undertaken to increase integration of these regions?

2.1. Redirection of 32% of FDI towards the Far East : exploiting and expanding the diamond, mineral, gas and oil deposits in the region

2.2. In particular, redirection of investment of China and India into these regions

2.3. Yamal gas project in collaboration with Total

2.4. Expanding infrastructure in Arctic Siberia : Construction of Arctic Ports in the region to prepare the Northern Sea Passage

2.5. Overall : Using both the potential opening up of the Arctic Ocean for trade routes and the natural resources in the Far East and Siberia to attract foreign investment and develop infrastructure in these regions

3. 1.b. What actions does Russia take to increase its integration in the global economy?

3.1. State interventions which increase the attractiveness of its territory : Infrastucture such as ports, high-speed trains connecting the metropolises and city infrastructure

3.2. Creation of many SEZs to attract foreign investment in terms of industrial production and innovation

3.3. Free trade agreements with Iran, Israel, Egypt, etc. Main trade partner is China

3.4. IGOs : Entered the WTO in 2012, the IMF in 1992, the Shanghai SCO in 2001, and follows all the norms of the WTO, for example its tariff rates

4. 1.a How well is Russia integrated into the global economy?

4.1. In 2019, $419 billion worth of exports (11th in the world) and $254 worth of imports (14th in the world).

4.2. Is an "energy superpower" : Half of Russian exports are hydrocarbons (gas and fuel) and is the 1st exporter of gas

4.3. Created and leads the Eurasian Economic Union, a trade bloc of 6 countries including Belarus and Kazakhstan

4.4. Overall : Russia is very well integrated in the global economy, foreign trade represents 1/2 of Russia's GDP --> a "very open country" by WTO standards

5. 3. How are its regions unequally integrated?

5.1. Concentration of population, resources and trade towards large cities, ex. Moscow, St.Petersburg, Yekaterinburg, on the western parts of Russia

5.2. Creation of many SEZs to attract foreign investment BUT most of them are situated on the western part of Russia, near the large cities and resources deposits

5.3. There are also many ports : Ex. Vladivostok on the Pacific Ocean is also an SEZ, a "free port" but none of them near Siberia and the Far East

5.4. As a consequence, very poorly integrated regions in the Far East and Siberia which are underpopulated but very large(pop. of Siberia : 34 million, only 3 times that of Moscow)

5.5. Overall : Large cities and developed industrial zones have an overwhelming advantage over more secluded regions in the Far East of Russia in terms of development and wealth, due to the passage of trade routes and high population in these cities, even though there are abundant deposits of resources in Siberia and the Far East