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- "Southeast Asia and Latin America account for more than 70% of export-import transactions"
"Southeast Asia and Latin America account for more than 70% of export-import transactions"
Trade with the economies of Southeast Asia and Latin America already accounts for more than 70% of Russia's export-import operations, and the share of settlements in national currencies on foreign contracts with them is about 90%, Deputy Foreign Minister Alexander Pankin said in an interview with Izvestia. Moscow will continue to deepen cooperation with the countries of these regions at the international level. The doors to BRICS and the EAEU remain open, the diplomat emphasized. In particular, the Eurasian Economic Union is counting on the active involvement of Nicaragua, which claims observer status. The conclusion of an FTA agreement with Indonesia is at the final stage. Expectations from APEC-2025, plans for the development of the North-South ITC and counteraction to sanctions are discussed in Alexander Pankin's exclusive interview with Izvestia.
"Our partners appreciate honesty in us"
- What is the most important thing for you in the work of a diplomat? How do you see an ideal diplomatic worker? What qualities should he possess?
- The most important thing in a diplomat's work is probably, first of all, faith in one's country. Belief that a diplomat is doing an important and necessary job and doing it well, that it contributes to strengthening Russia's image and satisfying and taking into account our interests in the international arena. Ultimately, it promotes active cooperation with various countries, which benefits them, us, and our people.
An ideal diplomat is, first of all, the ability to listen and understand, to speak and deliver information and arguments. Psychologically, it is the ability to be ready for unpleasant and difficult conversations, to show respect, never to get personal, because the interlocutor-diplomat is doing the same work. And, of course, it is the knowledge of culture, everyday life and traditions of the interlocutor in order not to offend and not to violate his habitual ways. It is important to find a way out of seemingly deadlocked situations, to show ingenuity, to reach compromises without compromising the fundamental interests of your country, and to believe in what you say.
Is there such an ideal diplomat? Our president is a great diplomat. My boss (Russian Foreign Minister Sergei Lavrov - Izvestia). In general, we have a huge cohort of people in this building (Russian Foreign Ministry. - Izvestia) and outside it, who are involved in diplomacy - public, public and at the highest level.
We have an honest diplomacy. Perhaps the perception of it has been distorted for many years, decades and even centuries. I, for example, absolutely do not share the view that a diplomat thinks one thing, says another and does another. Our partners appreciate honesty in us. Maybe we don't say things that we can't say, but we never deceive.
"The BRICS doors remain open."
- Now, in rather difficult times for diplomacy, settlements in national currencies are becoming particularly relevant. Thus, Russia, together with the central banks of the BRICS countries, is developing the BRICS Bridge settlement platform. Should we expect its launch in 2025? Have they managed to agree on the introduction of a single digital currency?
- Indeed, during Russia's presidency of BRICS in 2024, much attention was paid to the creation of a settlement and payment infrastructure equally accessible to all BRICS member countries. We are talking about promoting practical initiatives proposed by Russia to create mechanisms for cross-border payments, settlement, clearing and reinsurance infrastructure. The relevant agencies continue to be actively engaged in this work, including the interconnection of the financial markets of the BRICS countries and the introduction of new settlement schemes. We expect that this work will continue during the current Brazilian Chairmanship.
A single BRICS currency, which is the subject of much speculation and rumors, is out of the question at the moment. The main focus of attention of the member states is now on creating conditions for the widespread use of national currencies in mutual settlements. All BRICS countries are determined to achieve practical results and are ready to increase such cooperation. This was confirmed at last year's summit in Kazan on October 22-24.
- BRICS has recently added a new category of partner countries. Should we expect this list to be expanded in 2025? Do you suppose that in 2025, or maybe within two or three years, BRICS will have new full-fledged members?
- In accordance with the agreement reached at the Kazan summit, from January 2025, Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Nigeria, Thailand, Uganda and Uzbekistan have become BRICS partners. Indonesia became a full member. We are convinced that the inclusion of new like-minded countries in the work of the association contributes to the formation of a more fair, equitable and multipolar architecture of international cooperation. During the Brazilian "watch" period, in agreement with all BRICS members, we will promote the inclusion of partner states in cooperation with the BRICS members wherever possible, primarily in the "outreach" and BRICS+ formats.
Of course, we cannot ignore the growing interest on the part of the world's majority states in building cooperation with the BRICS. This confirms the attractiveness of our strategic partnership and the principles on which cooperation in the association is based. These are mutual respect, balance of interests and consensus. The doors of BRICS remain open and the priority remains to improve the efficiency and consolidation of the expanded strategic partnership.
"We count on Nicaragua's active immersion in the processes of Eurasian integration"
- Growing interest is also evident in other projects, organizations or associations where Russia is present in one way or another. For example, more than 10 countries have already joined the North-South international transportation corridor, and Oman and Qatar are showing interest. What partners will be added to the project in the near future? Are there plans to create a single operator?
- In connection with the destruction of established international transportation and logistics routes due to illegitimate Western sanctions against a number of countries, including Russia, with regard to air traffic, shipping (creation of various blacklists of tankers) and so on, the signs of unbalance in global trade are becoming more and more evident. This could lead to unpredictable social and economic consequences around the world. Against this background, Russia is involved in the creation of a new, independent supply chain architecture in Eurasia. The core element here is the construction of the North-South international multimodal transportation corridor. It is intended to become the backbone of the continent's transportation and logistics framework. The agreement on it was signed by Russia, India and Iran 25 years ago, in 2000.
Twelve countries have already become participants of the North-South ITC, and more and more countries are showing interest in it, seeing prospects in joining its creation. The goal is clear - to increase their trade turnover and to enter international markets. Last year, Turkmenistan submitted an official application. Russia, like other project participants, is open to cooperation with constructive partners in developing the ITC and strengthening regional interconnectivity. We note the importance of combining international efforts with the prospect of possibly linking the North-South ITC with other regional and transportation initiatives - there are many of them.
Relevant consultations are being held with partners on the creation of a single operator along the so-called western and eastern branches of the ITC. We expect good results.
- The EAEU offers obvious opportunities for expanding cooperation. January 1, 2025 marked the 10th anniversary of the entry into force of the agreement on the Eurasian Economic Union. It is worth noting that the EAEU is developing not only in Eurasia, but also covers other parts of the planet. For example, Cuba is among the EAEU observers, and Nicaragua is also interested in this status. Will there be new EAEU observers in 2025?
- In the 10 years since the formation of the EAEU, or EurAsEC, as an integration association, impressive work has been done, including on the international track. There are now four observer states in the union - Uzbekistan, Cuba and, more recently, Iran. This status gives additional impetus to cooperation with Tehran, in addition to the free trade agreement that has already been signed and has practical benefits for our economies. Moldova is also among the observers, although it has this status, but due to its domestic and foreign policy, it is now refraining from participating in Eurasian economic integration.
Leon, Nicaragua
Speaking about Cuba, I note Havana's active interest in the work of the Eurasian Economic Commission and the Cubans' desire to increase and strengthen dialog on a wide range of economic sectors - this is important, interesting and extremely necessary. The EAEU began its cooperation with Nicaragua a little over a year ago, when a memorandum of cooperation between the EEC and the Nicaraguan government was signed in January 2024. Nevertheless, a good pace of work has been gained over the year, and the first meeting of the joint working group was held. During the meeting, projects for potential cooperation were announced and contacts were established through the EAEU Business Council. We expect the Nicaraguan side to actively immerse itself in the processes of Eurasian integration, including through participation in public events within the Union.
- Are agreements on a free trade zone with India, Indonesia and the UAE expected to be concluded this year?
- The process of harmonization of the relevant documents can take quite a long time and depends on many factors. The main stage of negotiations with the UAE has been completed, and the draft agreement is undergoing internal harmonization in the EAEU member states, as well as in the Emirates themselves. Following the results, additional consultations may be required, then the parties will conduct internal procedures for signing the agreement, after which preparations for the relevant ceremony can begin. As for the free trade agreement with Indonesia, most of the documents have already been agreed upon. At this stage, the text is being finalized, and we can safely say that the finish line is near. With India, on the other hand, the future agreement is being discussed at the expert level. There are no official negotiations yet, but I am convinced that sooner or later they will definitely begin.
I would like to emphasize that the EAEU is open to new countries and integration associations both in the region and beyond and is ready to establish cooperation in areas of mutual interest.
"The Asia-Pacific region is a point of special application of Russian efforts"
- Russia is also involved in initiatives that are even larger in geographical terms. Among them is the Asia-Pacific Economic Cooperation. How do you assess Russia's participation in the APEC forum?
- APEC is the largest leading platform for region-wide economic cooperation in the Asia-Pacific region. It has a healthy asean-centric core and a balanced composition of participants, including Russia and China, which prevent its potential from being used for opportunistic purposes, as Western APEC partners often like to do. It also brings together close Latin American friends with whom we have consistently strengthened productive ties on a broad economic agenda.
The Asia-Pacific region is a point of special application of Russian efforts. It is one of the most dynamic engines of the global system. Trade with the economies of Southeast Asia and Latin America already accounts for more than 70% of our country's export-import operations, and the share of settlements in national currencies under foreign contracts with them is very high - about 90%. The network of free trade and economic partnership agreements is dynamically expanding. We already have such EAEU agreements with Vietnam and China, and negotiations are underway, as I have already mentioned, with Indonesia and other countries.
Along with traditional areas, such as transportation, logistics, energy, food security and health care, we cooperate intensively in innovative areas, including e-commerce, promotion of low-emission energy sources - gas, renewable sources, peaceful nuclear power, as well as advanced technologies, including in the field of ecology, marine engineering and medicine. In general, we view APEC as a creative platform, a kind of thought factory that promotes the development of open and mutually beneficial economic relations in Asia. And in tandem with like-minded partners - primarily the People's Republic of China and ASEAN partners - we are advancing a balanced proposal to achieve APEC's key benchmark of building an open, dynamic, viable and peaceful community in the Asia-Pacific region by 2040.
To this end, we are successfully countering the lopsided geopolitical narratives imposed by Western economies and working to fully depoliticize APEC discussions. In light of the so-called transactional approaches to relations with partners adopted by the new U.S. administration, APEC's own regional trade wars deserve condemnation, not political plots outside APEC.
- This year's APEC forum will be held in South Korea. What goals is Russia setting for itself at the upcoming forum?
- In general, we are impressed with the APEC 2025 priorities proposed by the current chairmanship of the Republic of Korea. They include strengthening economic connectivity, digitalization and artificial intelligence. It is important that the topic of demography is raised in the context of low birth rates. All of these areas reflect the key vectors of development of the modern economy, including the Russian economy. We intend to discuss ways of overcoming trade and economic imbalances, the digital divide, and regulation of the digital sphere. We will focus on the topic of balanced energy transitions.
We have significant achievements on the above-mentioned tracks, which are worthy of replication in the Asia-Pacific region. We will continue to implement APEC-demanded initiatives in such topical areas as the digital economy, increasing the potential of remote and rural areas, overcoming the effects of climate change, sustainable finance, assistance to small and medium-sized enterprises, and women's entrepreneurship.
- With which APEC economies does Russia intend to strengthen its relations?
- In recent years, Russia has implemented more than 80 applied projects on this platform, and today nine more initiatives are in the active phase. Last year, the Ministry of Economic Development published an APEC report on green finance in APEC, and the Ministry of Finance and African partners held a seminar on the economic aspects of radio frequency spectrum utilization. In addition to APEC economies, Brazil and Colombia were also participants.
We will continue to establish mutually beneficial contacts with all constructive partners. Naturally, we have close coordination with the People's Republic of China, as our approaches to current global and regional processes largely coincide. We are engaged in an active dialog with ASEAN. Both the Global South and the East see Russia as a reliable partner with broad economic interests and potential. It is no coincidence that four major APEC economies have joined BRICS - Vietnam, Malaysia and Thailand as partners and Indonesia as a full member. At the same time, as Russian President Vladimir Putin has repeatedly emphasized, we do not refuse to cooperate with all participants of the forum who are ready for such a constructive and pragmatic dialogue. Let's see how it goes.
"Within the SCO framework, special attention is paid to jointly parrying challenges and threats"
- Speaking about Russia's cooperation at the international level, it is impossible not to mention the SCO. Does the organization have the potential to effectively counter Western sanctions against Russia?
- First of all, it should be emphasized that the Charter of the Shanghai Cooperation Organization, among its main goals and objectives, provides for the promotion of comprehensive balanced economic growth, as well as joint work on the basis of equal partnership in the interests of improving the living standards of the peoples of the member states of this association and the region as a whole.
The SCO consistently opposes any illegitimate economic sanctions that undermine the established system of international cooperation. Along with Russia, other SCO members - China, Iran and Belarus - are also subject to aggressive pressure from the West. Naturally, in bilateral cooperation and within the SCO, special attention is paid to jointly addressing challenges and threats, including economic ones. As a result, national currencies are used in Russia's trade with other SCO members. In addition, the organization is taking measures to implement a road map for gradually increasing the share of national currencies in mutual settlements, which will make it possible to reduce the influence of other toxic currencies.
Russia, as Chairman of the SCO Council of Heads of Government, intends to vigorously promote cooperation in the economic sphere and to give new content and quality to the economic dimension of the SCO in the light of the changing complex geopolitical realities.
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