Moscow. April 30. INTERFAX - Director of the First Asia Department of the Russian Foreign Ministry Georgy Zinoviev in an interview with Interfax shared his vision of Russian-Chinese relations under Western sanctions, spoke about the prospects for the growth of trade turnover between the countries and expressed confidence that the growth of China's power will open up new prospects for the development of the Russian economy. A senior Russian diplomat also spoke about Moscow's cooperation with Pyongyang and Seoul in the current conditions.
- The domestic economy, in the face of unprecedented sanctions pressure from the West, is reorienting to the Asian direction. Under these conditions, how quickly will our key partner, China, be able to make a significant and decisive contribution to the replacement of Western investments, technologies, equipment, etc.?
- The policy of strengthening comprehensive cooperation with China is an absolute priority of Russian foreign policy, has a stable and long-term character. Our trade and economic ties have been actively developing on a mutually beneficial basis for many years, which meets the mutual interests of Moscow and Beijing, serves the prosperity of the two countries and the well-being of our peoples.
The turn of the Russian economy to the East began a long time ago, both for objective reasons (the growth of the Chinese and other economies of the Asia-Pacific region) and for subjective reasons - thanks to good relations with Beijing and most eastern partners against the backdrop of growing problems with neighbors in the West. We have come prepared to date: Russian-Chinese oil and gas pipelines are operating, major joint projects in the field of energy and industry have been implemented, two cross-border bridges across the Amur have been built, and an infrastructure for settlements in national currencies has been created. Since 2009, China has been Russia's largest foreign trade partner and one of the key investors in our economy.
Last year, bilateral trade increased by a third and reached a historic high of $140 billion. In the first quarter of this year, an increase of 30% was recorded. At the same time, we understand that now there is a period of adaptation to new conditions, which will take some time. In addition, supply chains have not fully recovered from the effects of the pandemic, and the difficult situation with coronavirus in China is affecting commodity flows. Nevertheless, we are aiming at the implementation of the goal set by the heads of state to bring bilateral trade turnover to $200 billion by 2024. Moreover, we believe that it is quite possible to reach this ambitious target ahead of schedule.
Chinese business remains interested in expanding its presence in Russia, for which additional opportunities are opening up in the conditions of the departure of some Western companies. We note the readiness not only to export products, but also to create production facilities, jobs and localization of technologies. I am convinced that our partners and I will be able to use the current situation in our common interests and fully unleash the potential for a significant increase in cooperation in all areas.
- According to a number of media reports, some representatives of Chinese business are wary of cooperation with Moscow because of the threat of secondary sanctions. What signals do we receive from our Chinese partners in this regard? Is there any talk about developing mechanisms that would minimize the sanctions risks for our partners from China? How close are we to completely abandoning the dollar and the euro in mutual settlements and switching to national currencies?
- Washington is stubbornly striving to drive a wedge into Russian-Chinese relations, to force Beijing to curtail cooperation with our country. The set of methods is well-known: blackmail with sanctions, threats, accusations from officials and the media, fake news, etc. It is obvious to us that such, if I may say so, "dialogue" with a great power, which is China, is doomed to failure and will ultimately lead to the opposite effect - it will not make it obedient to someone else will, but will only strengthen the determination to go on its course.
Recently, a Chinese Central Television presenter described Washington's request to the Chinese side to join the anti-Russian front as follows: "Help us cope with your friend so that we can deal with you later." We have a common approach to sanctions with our Chinese partners - we categorically do not recognize unilateral illegitimate restrictions. Beijing has repeatedly fallen under the "sanctions cudgel", while the reason was often simply that Chinese companies are more efficient. That is, we are talking about eliminating competitors by non-market methods, acting on the principle: "You are only to blame for what I want to eat."
It is clear that in the current situation, many Chinese economic operators are forced to exercise caution, given the likelihood of secondary sanctions. At the same time, the partners do not refuse to cooperate and are ready to expand its scope. We welcome this and provide the necessary assistance.
As for finance, together with the Chinese side, we have long begun to build a system of settlements in national currencies. The created infrastructure includes a bank authorized for clearing yuan, exchange trades in the ruble-yuan pair, a currency swap agreement between central banks. The efforts were not in vain: in the first half of 2021, a quarter of bilateral trade was carried out in national currencies. I have no doubt that taking into account the changes taking place in the world, this share will grow significantly. Western sanctions naturally stimulate this process.
- There are concerns that in the current situation, Russia is becoming a kind of "discount country" for China, whose assets have sharply fallen in price in the conditions of geopolitical uncertainty and restrictions, and which will be forced to sell its energy resources at a significant discount, and so on. Are there any fears that over time our economy may become seriously dependent on the Chinese one? And are there any risks that in the end our relations with China will repeat the scenario of relations with the West, dependence on which we completely exclude in absolutely all spheres?
- I would not draw such parallels. Unfortunately, the United States and the European Union refused to cooperate with us on an equal footing, and some Western companies, though not of their own volition, turned into an instrument of economic aggression against Russia. China adheres to fundamentally different approaches. Our relations with Beijing are developing on an equal and mutually beneficial basis, meet the objectives of strengthening good-neighborliness between Russia and China, and therefore have a stable, long-term character.
I am convinced that we do not need to fear the increasing power of China, which will be the main driver of global growth in the coming decades. On the contrary, it opens up new prospects for the development of our own economy. The capacious Chinese market presents ample opportunities for the supply of not only the traditional positions of Russian exports – oil, gas and coal, but also domestic agricultural, industrial and other products. We should expect an increase in the volume of commodity flows to China due to their reorientation from the western direction. Of course, such deliveries should be carried out on market grounds. At the same time, our economic cooperation is not limited to trade. The powerful technological, production and financial potential of China can and should be used on a much larger scale than before to solve the problems of our development.
- The Russian side stated earlier this year that there is still a chance of resuming the six-party talks on the DPRK. Does this idea remain relevant today, including taking into account the fact that half of the participants in these negotiations - the United States, South Korea and Japan - have become unfriendly to us? Can this circumstance affect the settlement of the North Korean problem?
- Russia always adheres to the position that the six-Party talks are the optimal format for resolving the situation on the Korean peninsula. We are convinced that it is possible to achieve the denuclearization of its entire territory and lay the foundations for the creation of a solid system of peace and security in Northeast Asia only through political and diplomatic means, acting on the basis of the principles of equality, step-by-step and synchronicity.
Despite the unprecedented aggravation of the international situation under the influence of the Ukrainian crisis, cooperation with partners on Korean issues continues. In particular, in March this year, consultations were held in Moscow between the Deputy Minister of Foreign Affairs of the Russian Federation I.V. Morgulov and the Special Representative of the Government of the People's Republic of China for Korean Peninsula Affairs Liu Xiaoming, during which the current situation around the peninsula was discussed in detail. We agreed to maintain close coordination between Russia and China in this area.
As for the participants of the "six-party meeting" included in the list of foreign states that commit unfriendly actions against the Russian Federation, Russian legal entities and individuals, we do not refuse to contact them on issues of the Korean settlement. So, in March of this year, I.V. Morgulov had two telephone conversations with the Special Representative of the Ministry of Foreign Affairs of the Republic of Korea for Peace and Security on the Korean peninsula, No Gyu Dok, discussing topical issues of cooperation in this area.
- Can the total amount of sanctions imposed on Russia change our position on the issue of compliance with the restrictive regime applicable to the DPRK, in particular, in terms of the volume of supplies of petroleum products, coal, and our cooperation in the financial sphere? Will anti-Russian sanctions affect the supply of humanitarian aid to the DPRK, what volumes are expected this year?
- Russia, being a responsible member of the international community, strictly implements all decisions of the UN Security Council. Accordingly, any changes to the restrictive regime imposed by the Security Council resolutions on the DPRK are possible only if it is revised in accordance with the procedure provided for by the UN Charter.
Taking into account the above, at the end of October 2021, together with China, a draft political and humanitarian resolution was circulated in the UN Security Council, suggesting a relaxation of the international sanctions regime against the DPRK in the humanitarian sphere and other civilian areas not related to the nuclear missile program. Unfortunately, the United States does not demonstrate a willingness to discuss it.
We are still determined to provide assistance to our North Korean partners in the spirit of friendship and good neighborliness. Humanitarian supplies have been carried out by us for many years both on a bilateral basis and through international organizations. So, in 2020, in accordance with the decision of the President of the Russian Federation, 50 thousand tons of wheat were sent to the North Korean side free of charge. Through the UN World Food Programme for the period 2020-2021. Russia has provided assistance to the DPRK in the amount of $7 million.
In the context of the suspension of the work of representative offices of international organizations on the territory of the DPRK, including the UN WFP, the question of specific forms and volumes of humanitarian assistance from Russia this year remains open and will be resolved as soon as the strict anti-epidemic restrictions imposed by Pyongyang, providing for the complete closure of state borders, are lifted.
- How will Seoul's accession to anti-Russian sanctions affect our relations with South Korea, how critical is this factor for business contacts? Is there an understanding that many South Korean companies will take a pragmatic position and will not leave the domestic market?
- The decision of the Republic of Korea to impose unilateral restrictive measures against Russia, contrary to international law, is regrettable and already has a negative impact on bilateral relations, including in the trade and economic field.
At the same time, they drew attention to a number of steps by the South Korean side aimed at minimizing the economic damage from the aforementioned illegal sanctions. In particular, items such as smartphones, household appliances and cars were excluded from the restriction lists. A positive signal was the resumption by Seoul from April 1 of this year of the Agreement between the Government of the Russian Federation and the Government of the Republic of Korea on the mutual cancellation of visa requirements dated November 13, 2013, suspended due to the pandemic. Despite the unprecedented pressure experienced by private South Korean businesses, many companies in the Republic of Korea have not succumbed to the anti-Russian hysteria fanned by the West and are in no hurry to leave the Russian market.
We remain hopeful that Seoul will not take new actions that can negate the accumulated considerable positive in our relations, and in the future bilateral ties will receive a new development.
