THE WORLD BEFORE AND AFTER: THE GREATER EURASIAN PARTNERSHIP AS A CATALYST FOR EPOCHAL CHANGE

Marat Berdyev, Ambassador-at-Large of the Ministry of Foreign Affairs of Russia

The initiative to establish the Greater Eurasian Partnership was carried by the President of the Russian Federation back in 2015. Its emergence at that particular historical moment served as a compelling response to the significant challenges to the integrity of the global economy and as a promotion of the fair model of globalization processes.

The West-center mechanisms of the global economic system have begun to show obvious failures, characterized by a complete imbalance in international markets and supply chains. The infamous “Washington Consensus” and neoliberal

approaches to the operation of the global economy have completely discredited themselves. Moreover, the collective West, having lost its political and economic leadership has stopped acting as a guarantee and reliable source of critical tools for business operations.

The unwinding of sanctions, rampant inflation caused by the misuse of the printing press, and the Western unilateral extraction of benefits from manipulations in dominant positions in settlement systems, insurance, transportation, stock

exchanges and rating structures to the detriment to common benefits, have led to excessive risks. In fact, the criminal methods used by the collective West to seize sovereign state assets and private property of their owners through illegal forms of seizure, retention, confiscation, and appropriation have dealt an irreparable blow to the stability of international economic relations.

In its current shape, the financial funds and the global development banks, with the implicit right of veto from the United States, have exhausted themselves as institutions for “collective public goods”. The Americans have, single-handedly, blocked the world’s regulator of commercial flows, the World Trade Organization (WTO). In the Group of Twenty (G20),

where the agenda in recent years has been set by successive presidency of developing countries, such as Brazil in 2024, they have prioritized the issues related to the reform of the global governance system. These issues primarily focus on strengthening the voting rights of the global majority within the IMF (International Monetary Fund), the World Bank, and the WTO (World Trade Organization).

Using support of a group of emerging economies – “BRICS plus” – that means, that along with the addition of the “twenty” members in 2023, the African Union it represents more than half of the members of this forum we will seek to adopt concrete breakthrough decisions towards this direction from the leading powers.

The fragmentation of the global economy and commodity distribution networks of the collective West, which it still partially controls them, even as a residual effect, is becoming a significant challenge. With this background in hand, the countries are developing South-to-South line of cooperation, as well as internal trade, economic ties, and cargo transportation routes within the Eurasian continent.

Powerful integration associations and reputable cooperation formats have established them-selves firmly and gained significant potential in this region. In many cases, Russia acts as an inspiration, founding member, key participant or key external partner. It includes multilateral platforms such as the EAEU, SCO, BRICS, and ASEAN, which are based on the principles of broad representation, constructive dialogue and mutual benefit. The African Union and the Arab and Latin

American communities also claim leading positions at the internation al arena and loudly and convincingly assert themselves in the Eurasian direction.

The positive dynamics has been observed in the increasing stability of the global economy. The economy is gaining new footholds and among them, Russia and other countries with similar views stand out. It has been initiated the significant transformations in the development of independent payment systems, settlements and business services. The configuration of economic relations is changing right before our eyes. There is a real revival of the East and South, which

occupied more than half of global GDP for the most of history, excluding a short period during Western colonization in the 18th and 19th centuries.

In 2023, they reached a significant milestone. The BRICS countries, with a combined share of 35% of global gross product, confidently surpassed the “seven” traditional industrial powers, whose share had dropped to 30%.

On the podium of the largest economies, when considering purchasing power rather than abstract accounting units, China remains at the top, followed by India and then Russia, which, according to the World Bank, has surpassed Germany and become the fourth largest economy.

We will continue to actively adapt to modern trends. Despite unprecedented sanctions pressure, our country is steadily following an upward trajectory, adding another 3.6% to the national economy in 2023. We have set ourselves the ambitious goal of continuing to move forward at impressive speeds. By 2030, we must ensure growth rates of proximately 3% annually, and achieve a total increase of at least 16.5% in six years.

Over 70% of Russia’s foreign trade has already been with Asia, and trade with China and India is rapidly increasing. Commercial payments with China (90%) and the EAEU (89%) are nearly entirely made in national currencies, or, in the case of India and Vietnam (60% each), have gained significant momentum. We are pleased with our positive achievements in cooperation with countries in Africa, the Persian Gulf, and Latin America.

Russian manufacturers are actively exploring promising market niches and high technologies, particularly in the digital sphere. The Greater Eurasian Partnership aims not only to give impetus to economic development in Greater Eurasia but also to establish it on solid and independent tracks, equipping it with the necessary tools to stimulate GDP growth and achieve development goals. The initiative has received support from a wide range of partners in Eurasia, including the EAEU countries, China, and other major economies.

Based on the EAEU as a reliable framework a solid foundation has been laid for the Greater Eurasian Partnership. Over the past few decades, the integration association’s GDP has doubled and reached $2.5 trillion. In 2023, output increased by 3.8%, accompanied by a rise in trade in high-tech products. The Union has established and it is operating free trade zones with Serbia, Iran, and Vietnam exploring similarмagreements with India, the United Arab Emirates, Indonesia, Egypt, and Mongolia.

Only one agreement with ourмVietnamese friends has brought bothмcountries significant benefits, as measured
by steady growth in export and import operations (for example, in the first quarter of this year, by more than one third). According to our partners, a similar agreement with Iran could increase mutual trade flows by 30–40%.

The transport potential has been noticeably strengthened. We are creating a promising international North-South corridor connecting Russian ports in the Baltic Sea with sea harbors in southern latitudes. This will reduce delivery times of goods by 10 days compared to the Suez Canal. The Northern Sea Route provides new large-scale opportunities that, under the influence of climate change and due to the aggravation of the international situation in the Red Sea region

are becoming an extremely attractive route. In September last year and May this year, Gazprom and Novatek respectively transported the first shipments of liquefied natural gas along this route to Asian consumers.

In 2023, the Northern Sea Route set a historical record for cargo transportation with 36 million tons. Contractual
obligations suggest that this figure will increase to 200 million tons by 2030 and 220 million tons by 2035.
Similarly, the capacity of the Eastern Railway Landfill has been increased, and this year it will approach the level
of 180 million tons.

Trade and economic cooperation with China, as well as working cooperation with the Shanghai Cooperation
Organization (SCO) and the Association of Southeast Asian Nations (ASEAN) are on the rise. The Belt and Road Initiative is also gaining momentum. We have established the efforts to coordinate the development of the Greater Eurasian Partnership (GEP) and the Belt and Road Initiative (BRI), launched digitalization of highways jointly with China.

Specific elements of the common economic architecture, such as the Eurasian Reinsurance Company and the Eurasian

Rating Agency are being successfully developed through the EAEU, SCO, and Brazil, Russia, India, China, and South Africa (BRICS). It is underway research regarding the feasibility of introducing settlements in digital currencies within the framework of Russia’s current presidency of BRICS.

The purely economic focus of the GEP does not contradict its complex civilizational impact, which ultimately means the transformation of the continent into a zone of shared prosperity and stability, as well as the creation of conditions for implementing the concept of Eurasian security on an equal and indivisible basis for all countries and people, without any blocs or alliances aimed against third parties.

The GEP is a new approach to international cooperation. Under its principles, the processes will continue to be voluntary, at different speeds, mutually respectful, based on national interests, and based on consensus, rather than dictates or artificial extrapolations of backstage norms and rules under the guise of “best practices” or “the last word of science”.

This is how we envision a multipolar world, in which the economy serves as a catalyst for peace, stability and prosperity, rather than a tool for war, oppression and profit. We welcome dialogue with all stakeholders, including governments,

businesses and civil society, to develop futher the GEP. We will use conferences and forums such as the SPIEF, Eastern Economic Forum and New Era – New Ways as platforms for this purpose.