DM: Excellency, it’s been almost three decades since the end of the Soviet Union. Would you say that modern Russia has changed dramatically, or do you think that there are some areas still undergoing a comprehensive modernisation and transition process?
H.E. Sergey Y. Nechaev: If someone were to visit Russia today after having been there 30 years ago, I don’t think they’d recognise our country again. In today’s Russia, there is no dominating ideology and no rigid centralisation. Instead, we have a democratic state order, a mature civil society, an established market economy, and strong industry and agriculture. There are many economic areas in which Russia is an international leader. We also know very well how difficult and painful this transition was. But I’m sure that we’re on the right path, despite the difficulties.
Regarding modernisation: It’s a process that needs to be continuously practiced in every country that doesn’t want to fall into stagnation or be pushed onto the sidelines of history. In this sense, we have some clear guidelines that have been announced and solidified by the president of the Russian Federation Vladimir Putin in this year’s state of the nation speech. The most important areas to focus on will be: Improving the investment climate, creating favourable conditions for the middle class, digitalising the economy and state management, increasing productivity through the use of new technologies, supporting the economy of innovation – including digital start-ups –, and developing infrastructure. Of equal importance are national projects in social areas such as improving the quality of our educational and healthcare system, supporting young families, protecting mothers and children, and fighting poverty. Human capital is our most important resource. The wellbeing of our citizens in all aspects should be the highest priority for the state.
You were already working as a diplomat in the embassy of the former GDR at the end of the 70s. According to you, how has the relationship between Berlin and Moscow changed since then?
My familiarity with the GDR began in the early 70s, when I visited through a student exchange program. Back then I was touring through many cities, and gained some really interesting impressions. For the Soviet Union, the GDR was an important ally. I witnessed German reunification in Moscow, when I was working in the headquarters of the Foreign Ministry. It was clear that German-Russian relationships were going to develop a new dimension. And that is exactly what happened. Looking back, I can identify many positive things. This includes the many successes we made through strategic partnerships, by expanding neighbourly relationships, and strengthening our inter-social dialogue. The focus is of course on economic relations. Mutual trade is growing – about 5,000 German companies are active in Russia. Our cooperation with Germany has always been defined through openness and a willingness to exchange experiences over various issues, even if our opinions sometimes differ.
The current political climate between Russia and Germany is, in my opinion, a result of positive developments that have primarily arisen from summit meetings, but also from parliamentary cooperation, national diplomacy, and cultural and youth exchanges. In this regard, I can think of a couple of examples for initiatives that have given our relationship a new dynamic. Let’s think back to the German-Russian cultural meetings in 2003-2004, on the Russian Year in Germany and the German Year in Russia in 2012-2013, or on the themed years of the youth exchanges in 2016-2017, and the regional and municipal partnerships in 2017-2018. The baton is now in the hands of the themed year for higher education and training partnerships from 2018-2020. All of these examples prove that the German-Russian partnership is present in many areas.
Our author Ewald König recently asked in an article he wrote whether Germany today would have a different relationship to Russia if it had kept its GDR diplomats after reunification. Do you share this opinion?
Of course it’s unfair to ignore the role that East German diplomacy played in establishing good neighbourly relations between the newly reunified Germany and the new Russia. In many ways, we have to thank the diplomatic efforts of the GDR and the USSR for the fact that there were many social, communal, and cultural encounters between Russians and Germans in the post-war years. But it’s equally unfair to ignore East policies, which dictated the convergence and the overcoming of mutual distrust. This came from Bonn. So both East and West German diplomats where involved in developing the foundations of our current relationship.
I want to note that currently, our embassy as well as the headquarters of the Foreign Ministry in Moscow maintain constructive working contacts with colleagues from the Federal Foreign Office. Putting aside known foreign policy differences, we – the diplomats in Moscow and Berlin – are united in the task of working for the good of German-Russian relationships and developing bilateral cooperation, in the interest of the citizens of our countries and for the entire European continent.
China is becoming an increasingly important strategic partner for Russia, especially when it comes to energy, defence, and trade. The Russian Far East is especially important here, since it forms the over 4,000-kilometre-long border to China. But exactly that’s where workers, businesses, and investors are missing. What does your government’s strategy look like?
The task of strategically developing the Russian Far East is one of the main areas of focus for the Russian president. There’s even a responsible ministry in the government. The work does not stop. In that region there are now 18 so-called areas of above-average growth, which have received investments of over two trillion ruble (about 300 billion euro) so that ideal conditions for investments can be created and economic growth can be accelerated.
There is a special fund that ensures that investments continue to flow by providing long-term and preferential financing for priority investment projects. In the past five years, 35 billion ruble (about 500 million euro) were used from the fund in order to support priority investments in the region. 56 percent of that were used to build new infrastructure, 32 percent was used for agriculture, and 14 percent for industrial development. 14 projects are currently in motion, totaling about 215 billion ruble (about three billion euro).
The free-trade zone that was meant for Vladivostok has also been expanded to the main ports of the Far East and of the regions Khabarovsk, Primorje, Sakhalin, and Chukotka. Infrastructure will be modernised and expanded (including customs clearance facilities, roads, and railroads), and administrative hurdles that stand in the way of transit are being eliminated.
Russia’s president will present the national program to develop the Russian Far East by 2025 at the Eastern Economic Forum, which will take place in September. The implementation will start on 1 September, and will encompass the measures and development strategies I just listed in all far-eastern regions.
It’s important to understand that these tasks aren’t being done just for the wellbeing of our citizens, but also for international trade- and economic cooperation. One of the priorities of a multilateral cooperation is the creation of a large Eurasian partnership which includes the countries of the EMU, SCO, and ASEAN. The most important elements of these large integrating bonds is the consolidation of the EMU’s potentials, whose five-year-anniversary is coming up, as well as the Chinese “One Belt One Road” initiative. The resulting effects will contribute to strong and stable trade connections—not just bilaterally, but throughout the entire region.
During President Vladimir Putin’s speech in Moscow regarding the state of the nation this year, he promised to reduce the poverty rate by half in the next six years. How do you evaluate these measures? How will this ambitious project be financed?
The poverty problem is a global one. It exists, to some extent, in every single country. For Russia, improving the quality of life and the wealth of our citizens is of the highest priority for the president, the government, and the regional administration.
It should be noted that we have achieved significant progress in fighting poverty. In 2000, over 40 million Russians were registered as low-income. Today, the number is less than half of that. But there’s more work to be done. The President’s speech about “National Goals and Strategic Tasks for the Development of the Russian Federation by 2024” spoke about aiming to reduce the poverty rate by half once again. This ambitious goal was emphasised again during Vladimir Putin’s speech on the state of the nation in February.
In order to achieve this goal, all necessary conditions are in place. The Russian economy is recuperating after a drastic drop in energy prices and is adapting to external restrictions. Since then, it’s been growing steadily for three years in a row. The Russian GDP rose in 2017 by 1.5 percent and in 2018 by 2.3 percent. According to estimates, this year’s growth is projected to be between 1.7 and two percent.
Real wages have been increasing continuously. In 2018 they rose to a record-high of 6.8 percent, higher than they had ever been for the past seven years. Inflation is between four and five percent. In the legislative area, consolidated measures are being taken to give targeted support to those in need, to increase family allowances, and to update taxes and social security figures. The pension reform is also underway.
Concrete, multiplying effects will be brought about by the implementation of national projects in the areas of demography, education, and health. The purpose is to allocate 25.7 billion ruble for this in the next six years. National project will thus become an instrument to solving social issues, and therefore have to bring about comprehensive change in other areas as well.
In an interview with the “Junge Welt” you recently spoke about the large potential that can be found in the cooperation in areas of innovative technology and digitalisation. Where do you see Russia’s competitive advantage here?
Russia is known for its solid higher educational system and good conditions for research. The cooperation with Germany in the areas of science, research, education, and technology has existed for decades. There are over 900 partnerships between German and Russian universities and research institutions that are working on mutual projects. These partnerships are an integral part of the strong foundation for maintaining and developing stable relations between our countries.
The fruits of this cooperation are evident. For example, the world’s largest X-ray free-electron laser, the European XFEL, was just launched and initiated. For the first time in history, it’s possible to follow chemical reactions in real time and record “molecular films.”
A similarly wide cooperation is the exchange we have within the context of PIK and NICA-projects in Russia, including with German partners. Establishing a large research institute is only possible when there is world-class talent at hand. That’s the case in Russia. Large infrastructural research facilities create the foundation for revolutionary research, with basic and applied research whose results will later be implemented in the economy in the form of concrete products and services.
Russia’s economic development is pretty significantly dependent of the energy sector. Let’s pretend it’s 2050: How environmentally friendly and sustainable will Russia’s energy production be?
Gas will play a significant role in Russia’s energy mix in the foreseeable future, just based off of the incredibly large Russian gas reserves. It’s one of the most environmentally friendly fuels. By replacing coal power plants with gas-powered plants, as well as switching to using gas as fuel for water vehicles and cars, we’ll achieve a significant reduction of greenhouse gas emissions. We have been a reliable partner of Germany and all of Europe in the gas sector for many years. We will finish implementing our economic project Nord Stream 2, which is aimed at ensuring European energy security. Unlike Germany, we still have atomic energy, and are developing it and creating modern, safe, and efficient nuclear reactors. In Russia we’re currently resting corresponding breeder reactors. In the future, these will be able to achieve a full fuel cycle.
We’re also developing the renewable energy sector. Within the past six years, Russia has been implementing a consequent renewable energy policy that includes solar and wind power, as well as smaller hydropower plants. From 2014 to 2017 alone we’ve built renewable energy facilities generating over 270 megawatts, mostly from solar parks and a wind park in the area of Ulyanovsk. We are creating a complete value chain – from research all the way up to production and operations. In July 2017, we initiated the production of solar panels in Novocheboksarsk, all on the basis of Russian technology. The modules have a high performance level and are among the top three worldwide in terms of efficient series production. The use of renewable energy has already paid off in remote areas of Russia. Hydropower should also not be ignored, since it’s also a renewable energy source. It currently makes up 15 percent of our country’s energy mix. Since 2015, Russia is also a member of the International Renewable Energy Agency (IRENA).
Therefore I can assume that in 2050, Russia will have a diversified energy mix that will include modern and reliable nuclear power plants, gas power plants, and all renewable energies.
The “Russian Seasons,” which takes place for all of 2019, is a cultural and diplomatic series of events in Germany. What can the public expect?
The “Russian Seasons,” which was already very popular in 2017 and 2018 in Japan and Italy, are introducing culture lovers in Germany to the best Russian creators. We want to cover a wide spectrum of venues and genres: There will be over 400 events in more than 70 German cities –there will be opera, ballet, theatre, concerts, expositions, film screenings, and much more. The “Russian Seasons” were successfully launched into Germany’s cultural orbit at the Berlin Philharmonic, with the participation of world-famous creators such as Valerij Gergijew, Denis Matsuev, Vladimir Spivakov, and Yuri Bashmet, who kicked off this cultural marathon. I invite all music and art lovers, as well as those interested in classical repertoires, to be a part of these celebrations and to experience the diversity and uniqueness of Russia’s multinational culture.
Thank you, Ambassador.
INTERVIEW Enrico Blasnik