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Vladimir Litvinenko told ambassadors from 11 Latin American countries about the need for state regulation in the raw materials sector

Латинская Америка
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The rector of the Mining University emphasized the fact that many states with a rich resource base are at a low level of development due to their inability to competently monetize natural capital.

On the 319th anniversary of the founding of the city on the Neva, a delegation of Ambassadors of Latin America came to the St. Petersburg Mining University on a working visit. The main issue on the agenda was to improve the efficiency of mineral resources management. The event was organised in cooperation with the International Competence Centre in Mining Engineering Education under the auspices of UNESCO.

The guests' interest in this topic is not accidental. After all, in the depths of the powers they represent lie enormous reserves of hydrocarbons and strategic metals. Increasing the productivity of their management could dramatically improve the quality of life of the citizens of these countries. In theory, they could become 10-12 times richer than the average American.

For example, Argentina's natural gas reserves exceed 8 trillion cubic meters. In addition, the country has large deposits of lithium, uranium and many other resources. Brazil is one of the world's largest oil producers and has every chance to increase its production by 70 percent to 5.3 million barrels per day in the next 10 years. It also exports uranium, coal, iron and niobium ore. With such a huge resource potential, why is the local population so much poorer than people in countries that do not have such reserves?

Литвиненко
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"Transnational management of mineral resources is perceived as a natural part of world politics. But the management of a state's mineral base from abroad is, in fact, a violation of its sovereignty. And it leads to the fact that this state gets by selling its minerals only 10-15% of the possible income. The rest goes to importers engaged in processing and manufacturing of goods of direct consumption," noted the rector of the Mining University, Vladimir Litvinenko.

He emphasized that the strategy of post-industrial countries aimed at monopolizing free access to raw materials leads humanity to a dead end. Today, in light of the ill-conceived sanctions policy against Russia, this is even more evident. Logistical chains that have been built up over decades are breaking down, and the balance between energy, food and welfare is disappearing. This has already resulted in record global inflation, which could well result in mass starvation in many regions of the world.

Europe and the U.S. will pass through the economic crisis less painfully, since they can print banknotes almost without limit, as they have been doing in recent years. Since their currencies are means of international payments, the inflation caused by the issuance of unsecured money is "spread" around the world. Developing countries, on the other hand, can't afford this. Otherwise they would face a sharp decline in the value of their national currencies.

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"States with a rich resource base urgently need to reconsider their resource management policies. In particular, it is necessary to pay the utmost attention to the training of competent engineering personnel, who would be able to improve the efficiency of subsoil use. Moreover we should unite our efforts, create a unified modular approach to the issues of field development which would be based on the priority of national interests rather than transnational companies and western elites," said Vladimir Litvinenko to the participants of the conference.

Among the necessary steps, he mentioned, among others, the emergence of venture capital, which would be available to business and could be used in the implementation of specialized projects. Their payback period has recently increased significantly, including due to the need to invest in social and environmental obligations, and already exceeds 10 years in many cases.

"Managers of large energy and mining companies are now more interested than ever in clear, transparent rules of the game. Otherwise, the lack of a relatively quick financial return can become a serious demotivating factor for them. The government should establish such rules that are beneficial to all market participants: the government, businesses, and hired employees; and monitor their implementation. Only an active, professional and transparent government that manages the entire complex of minerals will ensure the stimulation of economic growth and job creation. This is the basis for strengthening statehood and trust in the mining sector; the only possible option for sustainable development and stabilization of social relations," summarized the Rector of the Mining University.

The Extraordinary and Plenipotentiary Ambassador of the Republic of Argentina in the Russian Federation Eduardo Antonio Zuain, informed Vladimir Litvinenko that he is ready to organize negotiations on cooperation between the La Plata National University and the Mining University. He believes that the collaboration of two such authoritative universities will improve the quality of training engineers internationally and contribute to the implementation of the best available technologies in the oil, gas and mining industry. This includes the Andes, which are the raw material base for most countries in the region. According to him, institutions of higher education from Chile and Bolivia are also interested in developing friendly relations with the oldest technical university in Russia.

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"It is fundamentally important that states manage their mineral resources themselves, not giving this right to foreigners. The structure of the economies of Russia and Argentina is very similar, they are focused on the export of minerals and processed products, so we are interested in the Russian experience of state management of resources. In my opinion, the federal government must stimulate, first of all, domestic consumption. Creating conditions in which natural capital will bring maximum benefit to the inhabitants of the country, in the depths of which it lies," said Eduardo Antonio Zuain.

His colleague from Uruguay, Daniel Castillos Gomez, said that for many years the economy of the smallest country in South America was based on agriculture. But now Montevideo has decided to pay more attention to the raw materials sector. Gold, iron ore, titanium and natural gas are just a few of the minerals that could be extracted.

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"Uruguay is among the countries of the Antarctic region. I know that scientists of the St. Petersburg Mining University have achieved great success at the Vostok station, and joint scientific research could be one of the areas of our cooperation. Equally important is the exchange of experience and implementation of the world's best practices in resource management. Uruguayan universities are interested in cooperating with St. Petersburg Mining University, including in increasing academic mobility. In my opinion, one of the biggest problems of the modern world is that scientists are practically deprived of access to managerial decision-making. Our work together must change the situation," Daniel Castillos Gómez summed up.

It should be noted that during the familiarization with the infrastructure of the Mining University, its guests from Latin America had a meeting with their compatriots studying at the St. Petersburg university. Their number today is not too high and, in general opinion, must be adjusted to an increase.

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Not only ambassadors and consuls, but also representatives of St. Petersburg city administration took part in the working meeting, devoted to improving the efficiency of regulation of the raw materials sector. In particular, the heads of the Committee on Foreign Relations Evgeny Grigoriev, as well as the Committee on Science and Higher School Andrey Maksimov. In addition, the meeting was attended by the heads of the leading universities of the northern capital.

The meeting was organized with the assistance of the International Competence Center in Mining Education under the auspices of UNESCO, established on the basis of the university.

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