Russia bets billions on turn towards Asia with Apec summit

Once a mysterious closed city during Soviet times, Vladivostok is ready to strut in the world spotlight as host of the Asia-Pacific Economic Co-operation summit.

Russia has splashed out US$20 billion preparing for the summit in Vladivostok, its largest but long-neglected Pacific port, as part of a grand plan to become a bigger player in Asian markets. The spending included building the city’s first sewage treatment system.

But most of what was built seems intended to impress the heads of state and business executives visiting for this week’s meetings. After arriving at a new international airport, they will be whisked into the city on a new highway and then across the world’s longest cable-stayed bridge to Russky Island, where a US-style university campus has risen from the rocks. Some of the buildings still reek of fresh paint.

Here they will be welcomed on Friday by President Vladimir Putin, who has set out to turn Russia east and tap into the growing Asian economies.

Russia has been largely oriented toward Europe, doing fully half of its foreign trade with the European Union. But a crisis among the 17 countries that use the euro is cutting demand for Russian energy supplies and undermining global growth.

Less than a quarter of Russia’s trade is with Apec, whose 21 members include China, Japan and other Asian economies in addition to the United States.