This week, the world has learned about the new plans of Russian President Vladimir Putin, which includes significant investments in infrastructure aimed at ensuring Russia's economic prosperity, even in case of further isolation from the Western world. According to the publication in The Economist , Russia has spent more than $ 200 billion, or 10% of its GDP, for war in Ukraine. Putin now plans to refocus resources for the construction of transport routes that connect the country with important trading partners in Asia and the Middle East.
Over the next decade, Russia plans to invest $ 70 billion in the construction of transport corridors. The largest part of these funds will be received by the Far East and Farre North of Russia. In particular, the attention will be focused on the international transport corridor of the North (Instc), which should connect Russia with the Indian Ocean through the Iran. Putin stressed that this project will be an example of international cooperation and will avoid Russia's dependence on the Western trade routes.
Changes in shopping flows have become obvious. The war in Ukraine has led to redirection of Russian goods to countries that have not joined Western sanctions such as China and India. The turnover between Russia and China last year reached a record $ 240 billion, which is two -thirds more than in 2021. To improve export efficiency, Russia also plans to expand the Northern Maritime Road from 36 million to 200 million tons by 2030.
Despite the ambitious plans, Russia faces serious challenges. For example, the icy covering limits the use of the Northern Marine Road, and the full route potential has not yet been realized. In 2022, only 8 million tons of cargo were transported by a special route, which is much lower than the capacity of 14 million tons. In addition, the Russian infrastructure management often faces the problems of ineffectiveness and insufficient involvement of labor.
The situation is complicated by the disputes between the countries participating in the Institute Participants, as well as sanctions that delay progress on bypass routes. Moreover, the accumulation of containers in the Far East of Russia indicates an imbalance in trade between China and Russia, which can increase competition between Russia and Iran.
