The Russian Far East: The Region as a Whole Excerpts from The Russian Far East: A Business Reference Guide, 1996, pp. 1­6. Reprinted with permission from Russian Far East Update, a monthly business briefing on the Russian Far East out of Seattle, WA. Tel: (206) 447-2668, Fax: (206) 628-0979, Email: 72124.2526@compuserve.com. Political Structure The Russian Far East is a group of ten territories, all of which have approximately equal political stature as subjects of the Russian Federation (except for the Republic of Sakha which has greater autonomy). Two of these entities, the Jewish Autonomous Oblast and Chukotka Autonomous Okrug, reached this status in the last few years. Regions have considerable, though varying, powers in many economic matters, first of all in taxation. The Russian Far East territories as a grouping have no formal political authority. The region's Governors have attempted to form a political organization entitled The Association of Far Eastern and Trans-Baikal Territories to represent its interests. However, conflict between the separate territories has meant limited success. The Russian Far East, then, is simply an economic grouping of territories which encompasses the easternmost lands of Russia not bound in any effective political confederation. These Russian Far East territories do, however, share many similarities: abundant natural resources, underdeveloped economies, and a geographic location that provides relatively easy access to Pacific Rim Markets. Each territory is currently governed by the Head of the Administration (often called the "Governor") appointed by the President of the Russian Federation. Legislative bodies (the local duma) are also represented in each territory. The executive branch (the Governor) is usually the more important authority in territorial matters.   Economy The Russian Far East is one of the least developed regions in Russia. It produces only six percent of Russia's national product and depends primarily on resource extraction. Its three major natural resources are marine biological resources, nonferrous metals, and timber. The region produces almost all of the diamonds and tin of Russia and much more than half of its gold and fish products. At the same time the region must import almost all of its oil, a substantial part of its coal, and one-half of its foodstuffs. Secondary to the extractive sectors-less understood, but still significant-is manufacturing: machine building, defense production (both marine and aviation construction), and ship repair.   Basic Infrastructure Transportation infrastructure in the Russian Far East is determined by the region's severe climate. Air transport is vital, especially in the region's north. The bulk of railroads lie in the southern portion of the Russian Far East. Permafrost limits the construction of roads in the north. Rivers and coastal waterways remain important means of transport, although navigation is limited to months of the year when waters are ice-free. Ice roads are a mode of transportation in the winter months. Deficiencies are significant. For example, there is no automobile bridge across the Amur River linking Khabarovsk with the west bank of the river. The single railroad bridge needs modernization. Bottlenecks in the railroad-seaport intermodal link continue to present a barrier to increases in international trade flows. We mention the need for flood-control measures (in the south) as part of a plan for rational land use.   Geography First, the region we are talking about is large: two-thirds the size of all the United States. Khabarovsk Krai alone is 1.5 times the size of France. Second, and most notable, is the region's distance from Moscow (the distance between Moscow and Vladivostok is 9,216 kilometers or 5,620 miles), and its proximity to Pacific Rim nations. The region shares a 2,200-kilometer border with China (1,342 miles) and a border with North Korea. Only several kilometers separate Sakhalin and Japan, or Chukotka and Alaska.   Geopolitics The Russian Far East's relationship with its Asian neighbors can be described, for the most part, as relatively peaceful. Occasional disputes arise with China-over border traffic, border demarcations, illegal trade-but these for the most part are isolated and minor incidents. In the recent effort to finish a complete demarcation of the Russian-Chinese border, a local quarrel broke out, fueled by nationalistic local politicians, but this quickly settled down, with Moscow showing no interest. Japan's dispute with Russia over four islands in the Kurile Islands chain has been going on for decades and is nearly impossible to solve in a mutually non-humilating way. This problem can not really be the main obstacle that prevents Japanese investment in the Russian Far East, however Japanese officials do use this unresolved problem to block international development projects, hurting the region's potential growth. The Russian Far East has a considerable Korean minority (mostly on Sakhalin) that helps to develop economic and cultural ties with South Korea.   Ethnic Relations The region has a multitude of indigenous peoples that are often not happy with industrial development projects that threaten their traditional environment. In a number of cases native peoples have been able to either stop development, or seriously limit the scope of such projects. Also, in recent years, two new political territories were created in a bow to the rights of their native inhabitants: Chukotka Autonomous Okrug and Koryak Autonomous Okrug. Though a largely symbolic gesture, this did help to satisfy non-Russian minorities in the region to some degree. One of the largest Russian Far East territories, the Republic of Sakha, was founded as a national semi-state for Yakuts who constitute less than half of its total population. In short, ethnic dissent and tensions are rather an exception here. The Russian-American Chamber of Commerce® is a nonprofit, nonpartisan organization acting to promote American business interests in the Russian marketplace. The Russian-American Chamber of Commerce® Last Updated: November 27, 2001. Copyright the Russian-American Chamber of Commerce® 1995-2003. All rights reserved.