Speaking of Russia's Far East Federal District, this land is really a headache for the Russian government. It covers an area of more than 6 million square kilometers, accounting for one-third of Russia's territory. It has enormous resources, including oil, natural gas, coal, and gold mines. Its oil reserves account for a quarter of the country's total. Coal ranks first in the world. But the problem is that there are very few people in this place, with a population of only 8 million, a density of less than one person per square kilometer, a cold and harsh climate, reaching minus 40 degrees in winter, and the cost of exploiting resources is ridiculously high. Russia has wanted to develop this place since the disintegration of the Soviet Union, but it is still a big financial hole, and it has to throw money from the central government every year to subsidize it. Especially after the Russia-Ukraine conflict in 2022, Western sanctions have made Russia's economy even tighter, the development plan of the Far East has been directly stuck, subsidies have been cut a lot, the local industry and service industries have shrunk, and the population is still running out. Russia knows that this place is like chicken ribs, and it's a pity to throw it away when it tasteless, but it just can't let it go, mainly for fear that others will take advantage of it.
In 1858, Tsarist Russia took 600,000 square kilometers of land north of Heilongjiang from the Qing Dynasty through the Treaty of Aihui. Two years later, the Treaty of Beijing in 1860 confirmed that 400,000 square kilometers east of Ussuri River belonged to Russia. This gives Russia an export to the Pacific Ocean, builds naval bases and ports, and regards the Far East as the gateway to the Pacific Ocean. After World War II, during the Cold War, it became the front line of confrontation between the United States and the Soviet Union. The Soviet Union deployed nuclear missiles, bombers and nuclear submarine bases here to ensure that the United States could not easily raid them. After the disintegration of the Soviet Union, Russia's military strength was once weak, but the strategic position of the Far East remained unchanged. It is Russia's barrier in the Asia-Pacific region, close to China, the United States, Japan and South Korea. If it is lost, Russia's strategic space will be compressed and its Asia-Pacific influence will be finished.
Now that 2025 is in place, the problems in the Far East are still the same. The population loss is serious. More than 1.5 million people have fled in the past 20 years. Young people have all crowded into Moscow and St. Petersburg, leaving behind the elderly and children. There is not enough labor force, and many mines, fishing grounds, and forest farms have been closed. The Russian government has tried to attract immigrants. In 2016, Putin signed a decree to implement a "one hectare of land" policy. Citizens settled on land for free. By 2025, it has attracted 150,000 people, but half of them are just building houses and not really developing them. The climate is too bad and the economy is depressed. Who wants to go there to live in the cold? Industrially, the cost of resource extraction is high. For example, the gold mine in Chukotka has the sixth largest reserves in the world, with more than 300 tons of gold. However, it is impossible to work from November to March of the following year in winter. Helicopters are used to transport them. Thousands of dollars, and the profits are pitifully thin. Agriculture is also limited, and only cold-resistant crops can be grown with low yields. Infrastructure is backward, roads and railways are imperfect, and transporting things is extremely expensive.
Economically, the Far East has always been Russia's drag bottle. After the disintegration of the Soviet Union, Russia put forward many development plans, and after Putin took office, he made it the focus. In 2007, the Ministry of Far East Development was established to manage economic revitalization. In 2013, the Far East Free Port Plan was launched, and districts were set up in cities such as Vladivostok and Khabarovsk to reduce taxes and attract foreign investment. But the effect is average, the development cost is too high, and foreign capital does not like to come. After the conflict between Russia and Ukraine, Western sanctions have caused a sharp drop in fiscal revenue. In 2022, central subsidies will be cut, and the local economy will be worse.
In the first quarter of 2025, the economy of the Far East grew by 5.6%, higher than the national average, but this was mainly driven by resource exports, which turned to Asian markets under sanctions, such as China buying oil and natural gas. However, relying too much on China is also a hidden danger. If China's economy slows down, Russia's exports will be affected. Although the debt of the Far East was reduced by 3.7 billion rubles in the first quarter of 2025, the total debt remained at 287.7 billion rubles, the unemployment rate dropped to 2.8%, and the employed population exceeded 4 million, but behind these figures are structural problems that have not been resolved, and the industry and service industries are not dynamic enough.
In strategic terms, Russia is dead in the Far East, mainly afraid of external forces to interfere. Putin knows that once the hands, China, the United States, Japan may have the opportunity to come in. China in the Northeast has historical memories, Russia is concerned about population infiltration, although China-Russia relations are good, but the resources and location in the Far East are too sensitive. The United States in the Asia-Pacific to strengthen military, Japan with the United States cooperation, Russia has to use the Far East balance. In history, the Far East is the fat meat in the eyes of the great powers, 19th century Russia seized the ground, 20th century Japan-Russia war, after Japan's defeat, the Soviet Union occupied the north of Kushchill Island.
This is the forefront of the Cold War, and now in 2025, Russia is also strengthening its military deployment, withdrawal of nuclear submarine bases.Putin said at the 10th Eastern Economic Forum in September 2025 that the Far East is the 21st century priority, signed a 12 trillion rubles investment agreement, expanded the free port zone, built an international advanced development zone, aimed at upgrading the infrastructure by 2030, railway capacity to 1.8 billion tons.But these plans have to shatter money, the Russian economy as a whole is unstable, fuel shortage, high inflation, and the burden of the Far East is heavier.
Russia's pain lies here. Knowing that the Far East is a burden, it has to carry it. The economic return is low, the population is outflowing, and the development is lagging behind, but the strategic value is great. Losing it is equal to breaking one's arm. Some domestic scholars suggested renting ports for money, but Putin's government refused to do it and continued to struggle. In 2025, there will be more than 2,900 investment projects in the Far East, with industrial production increasing by 30% and mineral mining increasing by 33%. However, these are multiples of the whole country, and the average in Russia is lower. Fishing of aquatic products in the Far East accounts for 75% of the country's total, and processing accounts for 65%. Logistics problems are pain points, and railway bottlenecks keep goods stuck. Russia's policy of turning to the East has accelerated since the Ukraine crisis in 2014. After 2022, it will more comprehensively turn to Asia, Africa, and Latin America, but the Far East is the core. It has deep cooperation with China and focuses on trade and energy, but Russia is worried about China's dominance and balances its relations with India and Japan. Japan is slow to invest, major energy projects, and South Korea is also cautious for fear of sanctions.
The future of the Far East is still unclear. Russia has to face a demographic crisis. The average age is 41.7 years old, with few young people and heavy aging people. The government provides special conditions to recruit talents, but the effect is limited. In 2025, the Far East Federal District wants to change its technical management structure and improve efficiency, but the fundamental problems are finance and geography. The Russian economy as a whole faces challenges. In 2025, it is forecast that GDP growth is low, military spending is high, and inflationary pressure is high. As a resource base in the Far East, it can be alleviated, but if it is not developed well, it will become an infinite loop. Putin's strategy is to accelerate development. Electricity consumption has increased by 28% in the past decade, twice the national average, but infrastructure can't keep up. Russia is unwilling to give up the Far East because it is not only an economy, but also a status symbol, which proves that Russia is a big country and has a share in the Asia-Pacific region. If you really let go, the internal instability and external containment will lead to too great losses.
Russia's dilemma in the Far East is structural, with historical legacy and realistic pressure. The treasure house of resources has become a financial black hole, and the strategic location has become a potential safety hazard. The government spends money to maintain stability, but it has to solve the population and infrastructure in the long run. At the 2025 forum, Putin emphasized cooperation to promote peace and prosperity, but the reality is that under sanctions, he turned to Asia and deepened dependence. Russia has to balance its economy and strategy, and don't make the Far East a bigger trouble. On the other hand, the potential of this place is there. If it can attract more investment and do a good job in logistics, it may be able to turn over. But now, the pain is real, I am reluctant to throw it away, and I can't bear it.