this month the russian city of lot of us stock hosted the apec summit for the first time since russia joined the group fifteen years ago there were a lot of us took some me to was in a bid to need to for russia to diversify its tight throughout the asia pacific rim during plea europe accounts for around a home of russia's foreign trade well trade stands at about a quarter but that is sad to change. them so trade with europe accounts for fifty one percent of the whole world its trade with the asia pacific region makes up twenty four percent however with economic growth in the asia pacific is much russia's trade with this region will also increase this doesn't mean that we should stay idle and just watch as things unfold we understand these processes and should adapt to them are we preparing for this yes we are how we are expanding infrastructure capabilities this sun we also resulted in a number of new investment projects such as the launch of them as assembly line in florida will start

a hyundai engine plant and many others asia pacific companies have already penetrated the russian economy and their products and services are in high demand we suppose there is a huge demand in russia in japan a solution. when i came here very found that unfortunately cables take the technology is not developed here so they found out for us to be huge fear to develop at the moment. in several projects such as construction of the mystery dome and said it better to be build by world cup two thousand and eighteen as well as we are providing engineering solutions for construction so and so if you quality again if the goal is achieved then many more asian businesses come to russia the government says this would not happen at the expense of the country european partners nonetheless as the euro crisis drags on countries like russia have every reason to be with its trade eastward that is yourself undermining arts.

simon i'm going to go to you now. a lot of us are they say they want to turn to the east but most most of russia's trade is to the west the european union how realistic and what timeframe we looking at turning to the east where absolutely right i mean at least fifty percent of russian trade is through the but europe has been going through absolute turmoil over the past few years and the looks like it continue for the super forseeable future growth rate asia office a substantial opportunity and it's one of the few growing regions in the in on in the world. is going to it's going to have an enormous amount of infrastructure cost associated with that but i mean it's just it is the natural natural route for russian trade and it's the most obvious way ok ben it's a natural route i agree but the cost is immense ok let's remind our viewers pipelines don't you can't twist them around and move them in a different direction to build a new one ok the coast is in for tests and more compared to mount of money we're

talking about with trade i mean i think we have to put this all into context you know the much vaunted globalization place they were at the very beginning of the process. goldman sachs to report that total global trade was worth thirty percent of g.d.p. global g.d.p. ten years ago now it's hard it will be eighty percent in the next decade and we're talking about hundreds of trillions of dollars and so in that context russia to actually focus on trade this is going to be the enormous tectonic change that's going on in the world and it's exactly right and what you need to do you need to put the infrastructure into place but once you've done that you're going to see enormous volumes of money goods and lot of us like i saw a lot of infrastructure there but i think it's not there's not even a question of volved here i mean the west is the past east the east is the future i mean it sounds like a bit now latino but i've been saying so for the last decade or so. russia has got

to look east if it wants to keep up with the global development also today we're going to keep this in perspective though in apec russia is a member of apec it is accounts for one point five percent of apec trade i mean let's go back there's a lot to do here there's a lot to do and a lot of the infrastructure is going to be financed with asian money the chinese are you know overwhelmed with dollar reserves they don't know what to do with their reserves and in numerous countries they are prefunding all sorts of export projects they're doing it in argentina they do it in brazil they do it in the ukraine so the chinese under proper conditions will certainly finance a lot of the means which will bring them what they're looking for and. it's the synergy made in heaven between china and russia to look at the russians have the roots and they have the rovers the raw materials and the chinese have the money and the demand to have a lot of noise if you think you have to be the country and simon let me go to you i

mean russia over the last twenty years is finally attained its economic sovereignty is it willing to go into such broad partnerships with other countries and china has more money than god right now i mean but they have certain ways of doing business their own workers their own ideas on trade and what direction i mean there's an opportunity here but there are some kind of risks as well yeah i mean it certainly has more money than god but at the same time it has severe lack of natural resources when i mean bennett mentioned the natural resource and natural gas and japan and south korea is something like four times the cost that it is and it is in the us it's nearly sixty percent higher than it is in europe so i mean there are the absolute advantages for russia forging ahead with the infrastructure projects and trying to push out its energy energy resources and it makes absolute sense there the real problem i think is more psychological and political economic economic economically it's a no brainer the problem is that both both sides there's a certain. distrusts there is

a history of misunderstandings between the soviet union and china the russians still are a bit afraid of the yellow peril the chinese aren't too sure what governments are going to be dealing with so it's taking time to build the bridges and has been working assiduously at this for a number of years and we're beginning to see the fruits of that now i mean russian trade with china has gone from a fast growing in in significant two thousand growing and now very significant it's russia's largest trading partner is the russian government doing the right thing for a private enterprise to get involved in this. it's still a lot of work to do i mean you know with the infrastructure it's hard to do business however i mean increasingly like eric said i mean this is not a natural marriage of love between these two countries but increasingly we're seeing a pragmatism coming in i mean the whole lot of our stock event was the showcase the russians put their flag in the ground and said this is. the we want to know you know you bring up a point i think it's very interesting i mean is this just some are also

a little bit of grandstanding with the west and their dissatisfaction with what's going on in the eurozone because you know whatever happens in the euro zone hits this country very strong it's a fundamental part of russian foreign policy and they said from the beginning that they wanted a multi-polar relations to govern the world and not this uni polar in other words the states. we've progressed to the point where this sort of political ideology is being manifest on the ground in terms of building bridges and roads and rails and i ceased tying these economies together and so it's in the russian industry it's not so much the turning away from the west it's just the opportunity lies the east and we're going to build that out and it looks like the west is also scored a spectacular own goal they have been antagonizing russia for the last fifteen years and russia basically threatens no one except itself occasionally. the problem is if there is going to be a threat to the dominance of the west it is not russia it is from china russia is a status quo power china is. rapidly growing power which is seeking to extend its

influence and they have forced russia into closer and closer political alliance with china and that he's saying so i'm going to give you the last word before we go to the break go ahead. i mean complete agreement with mr grimes that i mean you know the the coming together of these two is that it's the chinese the chinese growth is phenomenal and it's how it's had that the relationship between russia and china and there's always been fractured and sometimes not exactly friendly in the slightest the evolution of that will be interesting to say the least i'm sure that the u.s. politicians are watching this with with fear in many ways ok all right john i'm going to jump in here after a short break we'll continue our discussion how much is economy and much more state park.

my parents really truly honestly believe that what had happened was as a result of my father's exposure to agent orange i was born with multiple problems . i was missing my leg and my fingers and my big toe on my right foot i use my hands a lot in my artwork i find myself drawing my hands quite a bit to me for my hands you know just as if anyone would. but they do tell a story they tell a story of. oxen. wealthy

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zone free broadcast plug in video for your media projects free media. close. to. eleven welcome back. to mind you were talking about russia's trade reorientation been if i go back to you i mean i was in boston i was and i was extremely impressed and what they've done i mean it's vast they have built a whole new city here ok but it's a bike a baseball field will be. come i mean what are they going to what do foreign investors looking for i mean you could be looking at the joint venture is there

because a lot of assad doesn't have a lot of really modern facilities. where they're trying to build they're trying to build an capital asian capital i mean there's a huge chunk of the territories in asia and very must give us the overseas a lot of that and the investors will come if there's opportunity i mean there's a market a manufacturing base is a possibility into to the whole pacific rim certainly a transport hub i mean you're seeing it's one of the most amazing ports you could ever imagine it's very it happens to be placed in the midst of the world's largest trade. highway that basically the advantage of the countries which have done that's the developing countries which have done best are those where they are placed physically geographically in the midst of the high trade floats this is where a lot of africans out of south america has been left behind because they're out of the physical flow vladivostok is rate of the middle of it and bullets very far away from scale so i mean what kind of opportunity you think foreign investors will be

looking at if we look at the third the third capital of rush of lot of our stuff well one of the most important things that there's there's a labor force it's highly educated obviously the university has been set up that twenty five thousand students one of the key things will be fine because the population of like the fact of the value slot stock fell from a million to six hundred thousand key is having a highly trained and skilled workforce and that's one of the primary things that and the fact that i mean obviously russia's skolkovo project will probably have a far east and a far eastern wing into it and there will be then make the most logical sense as i want to mention that the russians of reopen the so-called northern routes this is a shipping route that goes not round africa to asia but it goes over the top and it's like two thirds of the distance and so it's faster and cheaper and that's already started because of the icebreakers nuclear powered icebreakers and those trade flows that way they. only increases but it looks importance you know if you're sending goods from asia to europe and so. on global warming benefits at

least one country in the world right yeah i mean if putin said moscow with palm trees what's so bad about. changing gears a little bit let's take a look at russian perspective here simon how is russia doing it compared to its emerging market peers ok because we still have a lot of turbulence out there yeah absolutely i mean russia's highly impacted by the quantity prices it's brazil and its base had actually fallen off a cliff and india is doing very badly. i mean we're having rolling blackouts across india china i mean china we haven't you know between seven point two and seven point five percent growth i was talking to a construction bank of china and they said that that feels like an absolute recession thank you imagine a seven that's a gross recession a great i mean a seven half percent is just i mean our profit friends in western europe would die for that so yes seven and a half percent but it fails very very bad and that's not is not a great thing erica so rusher in comparison is doing now we've had a slowdown but where if you know would run for four percent you can still see that the consumer spending here russian oil and i think it ben you pointed out earlier i

mean we look i mean when you're in the employment in moscow is at an all time low all time five point two percent. of the economy is running at full capacity and. russia has basically you know the several fives we're looking at about five percent inflation we're looking about five percent unemployment that we were looking at five percent growth maybe four percent growth now plus a budget surplus or at least no deficit russia is extremely dead it has the best macros of any country almost any country in the world right now maybe except for norway think that's because you know and you know we're old hands you think that's because of the one nine hundred ninety s. because of the other day because it was a miserable there's the despair i don't you miserable experience the meltdown and all that it left that extremely fearful of becoming in that the way the germans are scared of inflation the russians are now scared to death so they've been hyper can . servite also because we have a political system which is a lot of work in process the government has not had to buy support from the

populace until now so they have been able to limit their spending whereas the europeans have just been having to you know keep buying the support of the lower middle classes and you see with it eventually it could be the reform project immediately and we've been watching it for quite a long time now with distributors how did how and putin doing with his reforms because you have these two things you have to balance all of the time the first thing to say is that the russian government's never been good at doing everything at once and so they focus in on the areas topics be given though you know the vertical capital but on the things that they're working on for example the capital markets that's about to be transformed russia will be hooked up to euro clear and you can buy russian sovereign bonds from your chair in london and that could be transformational i mean the the amount of money going into sovereign debt here will triple in the first few months just as people rebound that brings up a very good point i mean it's more globalization of finance but you know there's

a lot of contained in out there i mean this is something i think the russians have to worry about yeah i mean absolutely i mean if the markets take a turn for the worst and an honest sovereign crisis in europe can still completely explode that will have an absolutely detrimental effect on russia unfortunately i mean the world is so into combined fifty percent of trade to be said to be said before when europe europe takes a nosedive into a serious recession russia will suffer on fortunately. the. yeah we have to differentiate between financial flows trade fluency and russia also has a very deep internal market russia is increasingly producing things for russians everybody talks about oil what they're missing is that i think the most important story maybe agriculture right now russia and the soviet union was the world's great agricultural importer now russia is becoming a major force first in grains now they're going to be exporting chicken fairly soon and they're basically going to become self-sufficient in beef so russia can feed

itself it can feed asia and there's just going to have to be a transformation of the economy you know it's only paint it's one of the interesting things during the soviet period almost everything people in the soviet union used and bought was made in the soviet union some stuff from eastern europe east german stuff today you go to stores what is made in in russia for for russians i mean my main it's coming up but i mean it's still pretty spicy i mean it's been difficult in so much as. because of the increases in wages and per capita the cost of labor is going up and up and so that stage when they could have invested in line manufacturing and made things for themselves because they were excluded from the bluto it didn't really happen and people are actually too rich and too expensive in order to make it worthwhile investing into that kind of thing when you can go to ukraine or kazakstan or somewhere else so russia's got a bit of a problem there but then that's why the governments focused on high tech and really that is the only solution they have to do the high value added things and they're

pouring money into the other problem is china has sort of blocked the first run on the latter countries used to go from making cheap transistor radios to making computer disk drives to making jet fighters the chinese and asia in general has occupied the light manufacture now if you go to the shop here most of your fast moving consumer goods are made in russia right foodstuffs because a lot of companies they could be for frequently foreign companies don't know want and the like. but. they're producing in russia the automobile sector is almost entirely made russian under foreign marques anything that contraflow long distance like food is made here in the car things because within that's been there and that's another place where the reform process has worked very well and very well and the state has encouraged and pushed that and everybody's doubling tripling quadrupling their productions i mean where do you have one automobile plant per year in russia was russia like with my russian cars ok simon let me go back to you i mean ben i mean it made the point do you think that the russians have to jump

into the high tech and words more value added yeah i mean david makes absolute sense i mean you know the days of a lot of code dominating the eastern europe are gone and i think russia has thank goodness for yeah absolutely you know the truth and maybe not but. you know i actually think that that the push into high tech and you know acquiring silicon valley type skills russia has some highly highly educated engineers and software engineers i think it's a four it's a move forward step forward and who knows where innovations have come from that science i mean there was a survey just out last week saying russia has the best educated population in the world i mean there's problems in the academic education sector but the population remains best educated and the other hand the biz the way business operates in russia is just not up to scratch there are some small businesses which are doing brilliantly well there are some wonderful stories but by and large a lot has got to be done to improve the business climate so that russian invention inventions can be developed can be commercialized can be manufactured in russia

we're still a long way so i'm simon last time we did this program or in between time my group went on vacation and we went to vladivostok it was one story that dominated the the papers and the internet that was pussy riot and none of this what we've been talking about here where it's russia's political risk because that's the only story we heard for about what six weeks or so as russia's political risk changed whatsoever because of that or what i would call russia's kone two thousand and twelve i mean i think there's a. the hypocrisy of the store store in the western press. in the u.k. where there were the riots during the summer a couple years ago and we had instant instant courts and cameron saying that we must put these people in prison and yet with where we are with russia you know all of a sudden i would push the right everybody condemning the verdict the girls were very stupid there probably wasn't the best choice of place but it was a western western plot where the western press just went a little bit ballistic ok eric well they were you wrote a lot about this basically this was god's gift to the kremlin puts you right

because the russian every man i mean the guy who works in an automobile factory the woman who sells food in the shop and they don't talk to western journalists by the way to them now the russian opposition is associated with people who defy all the holiest pay place at russian religion and who carried out a series of extremely obscene acts and then broadcast them on the internet in some sort of a weird political protest and this is in many ways unfortunate because russia needs an opposition every country needs an opposition ben last word you have to put it in context i mean the west made a big deal out of it in russia eighty percent of russians consider themselves to be orthodox and people were genuinely shocked about the desecration of the cathedral and the poll say more than half russians think because you've got what they deserved and that's the context of the story here which is totally different from what any report is only stupid because if you're trying to arrange the russian people up against the putin regime you don't start by attacking their fundamental

belief structure it's done on that point many thanks to my guests and thanks to our viewers for watching on the money see you next time on our team. news. the french invasion of russia has started again after two hundred years up at the.

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my parents really truly honestly believe that what had happened was as a result of my father's exposure to agent orange i was born with multiple problems . i was missing my leg and my fingers and my big toe on my right foot i use my hands a lot in my artwork i find myself drawing my hands quite a bit to me for my hands you know just as anyone would but they do tell a story they tell us

a story of. oxen. think . it is.