Tatarbieva A. D.

Saint-Petersburg State University

NEW ERA OF RUSSIAN ECONOMIC DIPLOMACY: CASE STUDY OF PUTIN’S POLICY

Annotation: This article analyses major tendencies in new Russian economic diplomacy resulted by globalization and transition to the market economy. The author provides with detailed analyses of Putin’s speech at the major Russian international economic forum to determine the new policy of Russian economy and make prognosis.

Key words: economic diplomacy, foreign economic policy, international political economy, Saint-Petersburg International Economic Forum.

Russia significantly has changed its foreign policy after the collapse of the Soviet Union. The need to coordinate the actions of business, build foreign economic policy in the period of the transition to market economy to achieve national interests make Russia to use elements of the Economic Diplomacy. Economic Diplomacy is a combination of economics and politics when politics is economized, and the economy is politicized. In the current situation, related to the impact on the Russian economy of trade sanctions (due to the case of Crimea, 2015), caused primarily by political reasons, the study of the economic issues of international relations is particularly topical. The growing importance of Russian economic policy is also determined by the fact of Russia’s accession to the WTO.

Economic diplomacy was also indicated by the Russian government as important instruments to attract foreign direct investments, to help domestic businesses abroad, increase the volume of export and thus promote the sustainable economic growth. Shifting of Russian foreign policy from the hard military emphasis to the geopolitical tools which are elements of the soft power is presented by the new era of Russian economic diplomacy. President Medvedev pointed the importance of modernization using term ‘economic diplomacy’ in his address to the Federal Assembly. [1]

Now we have a possibility to analyze traditional Russian Leader’s presentation at the St. Petersburg International Economic Forum (SPIEF) in 2015 from the point of major theoretical approaches of International Political Economy in order to understand Russian Leader’s position on national economic system of RF and make some prognosis. During the speech Putin in many ways tried to stress on the progress and “good mood’ inside of Russian national economic system despite the sanctions and trade embargos. “The import replacement program’s aim is not to close our market and isolate ourselves from the global economy.” Ideas of “openness and cooperation” became one the indicators of Liberal approach.[2] “We strive to cooperate with everyone – everyone who is ready to work on the basis of equality and mutual respect, and wants to implement mutually beneficial projects”; “Russia is open to the world, to economic, scientific and humanitarian cooperation, and contacts with civil society and business representatives from around the world” [3], Putin said. Therefore, perhaps the main thesis that Putin tried to convey is "Russia is open to the whole world." During his speech, it was the phrase the President repeated at least four times. He stressed the possibility of cooperation with almost all regions, even naming them: “I am confident that the trade and economic partnership with Latin American nations and BRICS states also holds enormous potential”; “Strengthening partnership with APR states is a highly important element of our work to develop Russia’s Far East”, “We will build our relations with the United States, with our European partners and in Asia on the basis of equality and, as I have already said, mutual respect” [3], Putin said. He expressed the thesis that Russia is satisfied with everything and is not closing from the world but want to concentrate on the economical growth and calling foreign partners to invest in Russian business. For example, “Our aim is to offer the freest and most predictable and favorable conditions and opportunities for investors” [3], Putin said. His speech during the SPIEF allows us to make some prognosis for mid-term perspective of development of Russia’s economy. It’s obvious, that Russian economy has its own way of development which can’t be fully introduced by western or American theoretical approaches. But Russia will continue to develop and stand at the way of sustainable development after sanctions period. In the nearest future it will concentrate on the economic growth and measures to encourage investments and technology. Favorable conditions will be created for the whole Russian business sphere (for example, tax rates will be fixed for 4 years). Such measures will give a possibility to small and medium business to produce its products on global market. All these will improve Russian economy.

Thus, summing up, Russian diplomacy is concentrated on the deep integrating into global economy, creating supportive environment for domestic business. Analyzed of Russian Leader’s presentation at SPIEF 2015 allows us to state about his the confident position on developing integration processes and ‘economizing’ of foreign policy.

References:

1) Foreign Policy Concept of the Russian Federation: Osnovnie napravleniya politiki Rossiyskoi Federatsii v sfere mezhdunarodnogo kulturno-gumanitarnogo sotrudnichestva (Approved by the President of the Russian Federation D.A. Medvedev on December 18, 2010). Ministry of Foreign Affairs, from http://www.mid.ru/Ns-osndoc.nsf/arh/45E54C90F9E14EE0C3257845002804F3? OpenDocument

2) Gilpin, Robert. Global Political Economy. Understanding International Economic Order. Princeton: Princeton University Press, 2001.

3) Putin Vladimir. Plenary Session of the 19^th St Petersburg International Economic Forum. June 19, 2015. St. Petersburg//

URL: http://en.kremlin.ru/events/president/news/49733