Ladies and gentlemen, my name is Nikita Lomagin, I'm Professor World Economy department at St. Petersburg State University. In module two, we will discuss central issues of Russia's place in global economic arena. The module was prepared in close cooperation with Associate Professors of World Economy department Ljudmila Popova and [inaudible] First, I will provide you with basic information on Russian geography and international dimensions of Russian economic development. Second, we will assess Russia's position in international rankings. Third, we will have a look at the economic relations with key Russia's economic partners such as the European Union, China, and the states of the Eurasian Union. We're saying that and let me finish my introductory words, so we can now move to the first question of this module. Let me get started with basic information related to Russian geography. Henry Kissinger once said that nations are formed by their history, by their geography, by cultural legacies. Geography prescribes foreign policy priority since trade with neighbors among other things as rule prevails over trade with overseas partners. Hence, we might expect that Russia's top foreign economic priorities buying large will be tied with your neighbors such as the former Soviet Republics states of European Union and China. Beginning with the reign of Ivan the Terrible in the 16th century, Russia managed to expand at an average rate of 50 square miles per day for four centuries, eventually becoming the largest country on the globe. Buffeted throughout this history by often terrible development in East Asia, Europe and the Middle East, Russia has felt perennially vulnerable and has often displayed the kind of defensive aggressiveness. Russian security has traditionally been partly predicated on moving outwards in the name of preemptive external attack. Today too, smaller countries on Russia's border are viewed less as potential friends than potential beachheads for enemies such as the United States and NATO. Russia remain the largest country in the world. There was breakup of the Soviet Union in 1991, Moscow lost some two million square miles of sovereign territory more than the equivalent of the entire European Union or India. Today Russia borders with 12 countries in Europe and six states in Asia. Such a location gives the opportunity to be a bridge between two economic giants, the EU and Asia. Russia is vast and bulk of your population resides in big cities, but in general population densities substantially lower than in neighboring states such as China and the European Union. Also, Russia has developed for centuries most less landlocked country. It has no natural borders except the Pacific Ocean and the Arctic Ocean. The latter which is now becoming a contested space too. As George Friedman observed, Russia's geographically fundamentally different from the rest of Europe. The rest of Europe is a Maritime region was extensive reverse leading to ports and where no one is more than 400 miles from the sea. Russia is essentially landlocked. The ports on the Arctic Ocean are frequently frozen, and the ports on the Black Sea and the Baltic Sea could have their access to the oceans blogged by the countries that control narrow straits. All of these ports are distant from most of Russia, and this reflected in Russia state building institutions and interaction with the outside world. Russia is extremely rich in raw materials. First of all, in fossil fuels, various ores, timber, freshwater etc, while most of her neighbors lack vital resources. In turn, Russia is looking forward for modernization and diversification of her mostly resource driven economy. But there are formidable obstacles of climates, terrain and distance that hinder exploitation of natural resources, and require huge investments and technology. Also, Russia's resource base is shifting further north and east. That is why there is growing economic interdependence and huge opportunities for mutually beneficial international cooperation.
