SOCHI, September 19 (RIA Novosti) – The whole system behind the security of European is currently under threat, Russian Prime Minister Dmitry Medvedev said Friday at the International Investment Forum 2014 currently underway in Sochi.
"In essence, the whole system of European security is now under threat, as well as basic values, further globalization and, in essence, the whole concept of peaceful development," he said at the forum.
European security has been a concern for NATO, who has been increasing its presence near Russia's borders, citing the need to better protect its allies, and suspending entirely its cooperation with Moscow.
Russia-EU relations have progressively worsened over the Ukrainian crisis that escalated to a military operation in mid-April when Kiev-backed forces were sent to suppress independence supporters in eastern Ukraine.
The European Union, alongside the United States, has implemented economic sanctions against Russian enterprises and certain individuals over the crisis, with the latest batch of sanctions coming into force on September 12, forcing Moscow to retaliate with measures, such as a food import ban.
Medvedev is currently participating in the International Investment Forum 2014 in Sochi that is taking place from September 18 to 21. The forum is dedicated to a constructive dialogue among business representatives and government officials, addressing the development of the global economy and showcasing investment projects in Russia.
West Seems to Forget That Russia Has Own National Interests
The Western countries seem to forget that Russia, as a sovereign state, has the right to shape and pursue its national interests, Russian Prime Minister Dmitry Medvedev said Friday.
"I have a feeling that the West has completely forgotten the fact that Russia has its own national interests," Medvedev noted, speaking at the 2014 International Investment Forum taking place in Sochi.
The United States and the European Union have been imposing sanctions against Russia over its alleged involvement in the Ukrainian crisis, which Moscow has repeatedly denied.
The latest round of sanctions was introduced on September 12, targeting Russia's largest banks, oil and defense companies, as well as certain individuals. The companies were denied access to the European capital markets, while a number of individuals were subject to entry bans and asset freezes.
Russia has prepared, but not yet implemented, a package of response measures to the new Western sanctions. The measures may affect machine-building, the petrochemical and automotive sectors, as well as impose restrictions on imports of used cars and textiles.
Russian President Vladimir Putin has stressed that Moscow may introduce these measures only to protect Russia's interests.
Moscow has responded to previous rounds of Western sanctions with a one-year food ban that targets a range of products from the countries that implemented sanctions against Russia.
All Attempts to Put Pressure on Russia by Sanctions Futile
Russia will not tolerate being pressured with economic sanctions, which are unproductive and only lead to the world economy’s greater instability, Russian Prime Minister Dmitry Medvedev said Friday.
“History clearly shows that all attempts to put pressure on Russia with such measures were futile. We will not tolerate political blackmail. We are the world’s biggest country, a nuclear power which is home to 150 million people, a territory with vast natural reserves and a huge market for goods, services and investment,” he said.
Medvedev added that the West “pretended that Russia does not exist on the global map at all.”
The Russian prime minister went further by arguing that anti-Moscow restrictions undermined the normal functioning of the world economy.
“One thing is for sure - the stability of the global financial and trade systems is currently being demolished. But, undoubtedly, this process can yet be stopped,” he claimed.
Medvedev also underscored that any future sanctions against Russia and pretext for their imposition are unpredictable, but so are Moscow’s responses to them. He added that “no one will be able to predict what effect will sanctions against Russia, the world’s sixth economy, have on the global economy in the long-term perspective.”
The prime minister, however, said Russia kept the door open for Western partners, if they are willing to negotiate.
Washington and Brussels have adopted a range of economic sanctions against Russia over its alleged role in the Ukrainian conflict. The restrictions are targeted primarily Russia’s banking, oil and defense sectors. Moscow has repeatedly labeled the West’s measures as counterproductive and illegal and may appeal against some of them in the World Trade Organization.
Global Financial, Trade Stability Being Undermined
The stability of global financial and trade systems is currently being undermined, Russian Prime Minister Dmitry Medvedev said Friday.
“One thing is for sure - the stability of the global financial and trade systems is currently being demolished. But, undoubtedly, this process can yet be stopped,” he said.
No One Can Forecast How Anti-Russian Sanctions Will Affect Global Economy
It is impossible to forecast how sanctions against Russian will affect global economy, Russian Prime Minister Dmitry Medvedev said Friday.
“We cannot predict what sanctions will be imposed on us and for what reason, and the West cannot predict how we will reply to such unfriendly move. More importantly, no one will be able to predict what effect will sanctions against Russia, the world’s sixth economy, will have on the global economy in the long-term perspective,” he said.
The prime minister added that Russia kept the door open for Western partners, if they are willing to negotiate.
Describing Russia as Closed Economy Inaccurate
Describing Russia as a closed economy is inaccurate, Russian Prime Minister Dmitry Medvedev said Friday, adding that the country was not planning to revise its basic macroeconomic principles.
"I would like to particularly stress that the system of our priorities remains unchanged. I think that any talk about a shift in our development model towards creating a closed economy, [an economy] of mobilization is inaccurate. We are not going to change our course and will preserve the main principles of our macroeconomic policy," Medvedev said.
The prime minister explained that Russia had to resort to protectionist economic measures in certain industries, but hopes to turn this to the country's advantage.
"The sanctions should and must be used to give [the sectors of Russian economy] new opportunities for growth. To an extent, this would be a "forced protectionism" on our behalf, about which we would not have even thought of under different circumstances. But we won't miss a chance like that," Medvedev said.
He listed food, pharmaceutics, aircraft and ship building, rocket and motor industries as those whose capacities could be utilized to a greater extent.
Economic sanctions, imposed be the West against Moscow over its stance on the conflict in Ukraine, were particularly aimed at the Russian oil and banking sectors, as well as at the defense industry. In response, Moscow issued a ban on the import of a range of food products produced by the United States, the European Union and a number of other nations.
Russia’s Growing Cooperation With Asian States Not ‘Revenge on Europe’
Russia's decision to focus on cooperation with Asia-Pacific countries is not "a revenge on Europe," but a well-thought-of response to current trends in the global economy, Russian Prime Minister Dmitry Medvedev said Friday.
"Our new strategy in Asia is not a senseless "revenge on Europe," as Western political experts sometimes describe it. It's a natural stage of development and a well-thought-of response to the changes in the [global] economic development," Medvedev said at the 2014 International Investment Forum taking place in Sochi.
Last week, as a continuation to the previous rounds of sanctions, the European Union and the United States introduced new measures against Russia that target a number of key Russian banks as well as oil and defense companies.
In view of Western sanctions, Russia has started shifting its energy supplies to the Asia-Pacific region.
On September 3, Russian Energy Minister Alexander Novak said Russia could double its oil and gas sales to Asia-Pacific countries in the coming years.
Russian oil supplies to the region currently stand at about 50 million metric tons, while gas supplies amount to around 14 billion cubic meters. According to Novak, the oil supplies could double and the gas supplies could reach 200-300 billion cubic meters.
On September 1, the construction of the 3,000-kilometer (1,860-mile) Power of Siberia pipeline was launched in Yakutia. According to Russian President Vladimir Putin, the new gas pipeline will significantly strengthen Russia's economic cooperation with the governments of the Asia-Pacific region, particularly with China.
In May, Russia's gas giant Gazprom and China National Petroleum Corporation (CNPC) signed a 30-year agreement on the annual export of around 38 billion cubic meters of Russian gas to China.
Russia Should Not Miss Chance to Apply Protectionist Measures
By introducing sanctions, the West gave Russia a chance to introduce protectionist measures, and Moscow should not miss it, Russian Prime Minister Dmitry Medvedev said Friday.
“The sanctions should and must be used to give [Russian businesses] new opportunities for growth. To an extent, this would be a ‘forced protectionism’ on our behalf, about which would not have even thought of under different circumstances. But we won’t miss a chance like that,” Medvedev said.
Decree to Scrap Ukraine’s Trade Preferences Ready and Signed
Russian Prime Minister Dmitry Medvedev said Friday he had already signed a decree to impose customs duties on goods from Ukraine, but it will come into force only if Kiev violates its agreement over European association.
“I would like to inform that today I signed a decree to introduce import customs duties for Ukrainian goods… The matter concerns food, consumer goods and other products,” he said. “But these duties will be introduced only if Ukraine starts to enforce economic provisions [of its EU Association Agreement] before the scheduled date [of January 1, 2016].”
