Struchenevsky concluded. "Business has begun to think about how to make money in the current conditions. I believe that the cheap ruble, alongside relatively high productivity — compared with other developing countries — will allow Russia to move from the import substitution model, which helped to stabilize the economic dynamic, to growth supported by increasing exports."

The financial crisis has also made companies and private individuals more careful when it comes to spending money.

"State-run companies** have finally begun spending in a reasonable way," said Dashkevich. "Consumers are also becoming more literate, trying to find ways of keeping their consumption standards against the backdrop of declining incomes. Of course, all that is painful, but, in the long run, the economy should benefit from it."

(from The Moscow Times)

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SHANGHAI COOPERATION ORGANIZATION

Brief introduction

The Shanghai Cooperation Organization (SCO) is a permanent intergovernmental international organization creation of which was proclaimed on 15 June 2001 in Shanghai (China) by the Republic of Kazakhstan, the People's Republic of China, the

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Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan and the Republic of Uzbekistan.

Prior to that*, all the nations mentioned except Uzbekistan were members of the Shanghai Five mechanism, a political association based on the Agreement on Enhancing Trust** in the Military Area on the Border (Shanghai, 1996), and the Agreement on Mutual Reduction of Armed Forces in the Border Area (Moscow, 1997). The two documents created a mechanism of mutual trust in the military area in the border regions, and helped to establish genuine partnership. After Uzbekistan joined the organization in 2001, the Five turned into the Six and was renamed the SCO.

At present five countries (Afghanistan, India, Iran, Mongolia, and Pakistan) have observer-nation status**, and three more countries (Belarus, Turkey and Sri Lanka), dialogue partner status**.

Initially, the goals of the Shanghai Cooperation Organization were in the area of mutual inter-regional activities on countering terrorist acts, separatism and extremism in Central Asia. In June 2002, The Charter of the Shanghai Cooperation Organization was signed at the organization's Summit in St. Petersburg, which went into effect on 19 September 2003. This is a core charter document stating the organization's goals and principles, its structure and major activities. In addition, the SCO's plans on fighting the international drug mafia as a financial buttress* of global terrorism were announced in 2006, while in 2008, it announced its active participation in normalizing the situation in Afghanistan.

In parallel to this, the SCO's activities also acquired a wide economic dimension**. In September 2003 heads of government of the SCO member states signed the Program of Multilateral Trade and Economic Cooperation, designed for 20 years. Its long-term goal is the creation of a free trade zone in the SCO space, while favourable conditions for trade and investment are to be promoted in the short-term perspective.

The main goals of the SCO are strengthening mutual confidence and goodneighbourly relations among the member countries; promoting effective cooperation in politics, trade and economy, science and technology, culture as well as education, energy, transportation, tourism, environmental protection and other fields; making joint efforts to maintain and ensure peace, security and stability in the region, moving towards the establishment of a new, democratic, just and rational political and economic international order.

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Proceeding from the Spirit of Shanghai the SCO pursues* its internal policy based on the principles of mutual trust, mutual benefit, equal rights, consultations, respect for the diversity of cultures and aspiration towards common development**, its external policy is conducted in accordance with the principles of non-alignment*, nontargeting* anyone and openness.

The Heads of State Council (HSC) is the highest decision-making body in the SCO. It meets once every year to take decisions and give instructions on all important issues of SCO activity. The Heads of Government Council (HGC) meets once every year to discuss a strategy for multilateral cooperation and priority directions within the Organization's framework, to solve some important and pressing issues of cooperation in economic and other areas as well as to adopt the Organization's annual budget. Besides sessions of the HSC and the HGC there are also mechanisms of meetings on the level of Speakers of Parliament, Secretaries of Security Councils, Foreign Ministers, Ministers of Defense, Emergency Relief**, Economy, Transportation, Culture, Education, Healthcare, Heads of Law Enforcement Agencies**, Supreme Courts and Courts of Arbitration, Prosecutors General.

The Council of National Coordinators of SCO Member States (CNC) is in charge of coordinating interaction within the SCO framework. The Organization has two permanent bodies - the Secretariat in Beijing (China) and the Regional Anti-Terrorist Structure in Tashkent. SCO Secretary-General and RATS Executive Committee Director are appointed by the HSC for a period of three years. Since January, 1 2013 these posts are held by Dmitry Mezentsev (Russia) and Zhang Xinfeng (China) respectively.

Russian and Chinese were adopted as the official working languages in the SCO. The rotating presidency* of the SCO member states is held in one year cycles. The

chairing nation* completes its year of presidency with a summit.

The SCO member states occupy a territory of around 30 million 189 thousand square kilometers, which makes up three fifths of the Eurasian continent, and have a population of 1.5 billion, which makes up a quarter of the planet's population.

(from the official website of Russia’s presidency in the Shanghai Cooperation

Organization 2014-2015)

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MEMBER STATES

Kazakhstan

KAZAKHSTAN (REPUBLIC OF KAZAKHSTAN, RК) is a country of Central Asia, in the heartland of the Eurasian continent. With an area of 2.724.900 sq. km Kazakhstan is the ninth largest country in the world. It shares borders with China, Kyrgyzstan, Turkmenistan, Uzbekistan and Russia. The population of the Republic of Kazakhstan is 15 074.2 thousand people. Islam is the largest religion in Kazakhstan followed by Russian Orthodox Church, Roman Catholic and Protestant Churches.

Administratively, the country is divided into 14 provinces, 84 municipalities, of them 39 municipalities of republican and regional subordination. The capital is Astana (as from December 10, 1997). The population of Astana is 528 thousand people. The state language is Kazakh, meanwhile Russian is also officially used pari passu* with Kazakh in the state organizations and municipal self-governance bodies**.

As from 1991 Kazakhstan is a unitary presidential republic. The current Constitution was adopted on August 30, 1995, amendments* were made in 1998. The head of state is the president (President of the Republic of Kazakhstan Nazarbaev Noursultan Abishevich). He is elected for a period of 7 years. The President is the Supreme Commander-in-Chief of the RK Armed Forces. The supreme legislative power in Kazakhstan is vested in a bicameral* Parliament made up of two houses - the Senate and Majilis. The main public and political organizations include the Republican party "Otan" ("Fatherland"), the Civil party, the Agrarian party,

"Ak Zhol" ("Light Way"), and the Communist Party. Today, Kazakhstan is a really functioning market economy. The Republic has large industrial potential and mineral resources. It ranks No.13 worldwide in terms of explored reserves of crude oil and gas. The largest deposits of the iron ore, coal and non-ferrous metals are located in the territory of the Republic. The key industries include the mining, coal, chemical, nonferrous and ferrous industries, mechanical engineering, light and food industries. The oil refining and production of construction materials are also on the surge*.

As for the mineral resources, Kazakhstan ranks No.1 among the CIS countries in terms of the Cr and Pb ore reserves, No.2 in terms of the crude, Ag, Cu, Mg, Zn, Ni and P ore reserves, and No.3 in terms of the coal, Au and Sn ore reserves. The Kazakhstan transport and communications complex is represented by railway, air, sea, river, pipeline transport, network of highways and telecommunication systems.

In October 1990, the Republic of Kazakhstan declared its sovereignty.

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China

CHINA (THE PEOPLE'S REPUBLIC OF CHINA, PRC) is a state located in the eastern part of the Asian continent, on the western coast of the Pacific. The area of its land territory is 9.6 million sq.km. The People's Republic of China is a socialist state under the people's democratic dictatorship led by the working class and based on the alliance of workers and peasants.

The head of state is Chairman of the People's Republic of China Xi Jinping who, as a rule, is also the General Secretary of the Central Committee of the Communist Party of China and Chairman of the Central Military Council of the

People's Republic of China.

The supreme state governing agency (legislative authority) is the National People's Congress. The supreme executive agency is the State Council or Central Government of the People's Republic of

China.

A ruling party is the Communist Party of China (founded in July, 1921). Its membership exceeds 80 million people. 8 democratic parties also function in China. The capital is Beijing. The state language is Chinese. The monetary unit** is Yuan.

The country is divided into 23 provinces, 5 autonomous regions, 4 municipalities of federal subordination and two special administrative regions, Xianggang and Aomen. The land border is 22,800 km long. China shares borders with Northern Korea, Mongolia, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Pakistan, India, Nepal, Bhutan, Burma, Laos and Vietnam. In the east and southeast China shares sea borders with the Republic of Korea, Japan, Philippines, Brunei, Malaysia and Indonesia.

The vast sea area belonging to China covers 5400 islands. The largest islands are Taiwan and Hainan.

China is rich in land and mineral resources. China is one of the world leaders in terms of the coal, iron, Cu, Al, Sb, Mo, Mg, Sn, Pb, Zn and Hg ore reserves. China is rich in crude oil, natural gas, oil shale, phosphorus and sulfur. The rare-earth metal ore reserves in China exceed the total reserves of all other countries. The People's Republic of China was proclaimed on October 1, 1949.

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Kyrgyzstan

Kyrgyzstan (the Kyrgyz Republic) is a country in the southeastern part of Central Asia. The head of state, the President, is elected for 5 years. The President is also the Supreme Commander- in-Chief of the KR Armed Forces.

The supreme legislative agency is Zhogorku Kanesh. The executive power in Kyrgyzstan is vested in the Government. The capital is Bishkek. The state language is Kirgiz. Russian is an official language. The monetary unit is Som. The population of Kyrgyzsatn is 5.2 million people.

Kyrgyzstan has huge reserves of mineral resources. Deposits of non-ferrous and precious metals and other mineral resources are competitive worldwide.

Deposits of coal, nonferrous and rare-earth metals are found in the territory of the Republic. The water resources are the most important natural potential that has an impact on the structure of the national economy. On August 31, 1991 the Declaration

on Independence of the Kyrgyz Republic was adopted.

Russia

RUSSIA (THE RUSSIAN FEDERATION, RF) is the largest country in the world (area – 17.075,4 thousand sq.km). It is a

democratic federative state.

The head of state is President of the Russian Federation V. Putin, elected for 5 years. The President is also the Supreme Commander-in-Chief of the Armed Forces of the Russian Federation. The supreme representative and legislative power is vested in the Federal Assembly (the Parliament of the Russian Federation) made out of two houses: the Council of Federation and the State Duma. The main political parties include "United Russia", "Fair Russia", Communist Party of the Russian Federation, "Motherland", Liberal - Democratic Party, "Apple" etc. The executive power is vested in the Government of the Russian Federation. The capital is Moscow. The official language is Russian. The monetary unit is Rouble.

Russia (the Russian Federation) consists of 89 equal-right subjects (regions), including 21 autonomous republics, 6 territories, 49 regions, 10 autonomous areas, 1 autonomous region and 2 cities with a federal status (Moscow and St.-Petersburg). In 2003, the national power system was reformed to reinforce the central power, to this end seven federal districts headed by the President's political representatives were established.

The Russian land borders are 22,125.33 km long. Russia shares land borders with Norway and Finland in the northwestern sector, with Poland, Estonia, Latvia,

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Lithuania, Byelorussia in the western sector, with Ukraine in the southwestern sector, with Georgia, Azerbaijan, Kazakhstan, China, Mongolia and Democratic People's Republic of Korea in the southern sector.

The national income per capita is 6840 Dollars. The gross domestic product of Russia (as of February, 2007) is 2 trillion 177 billion Roubles. Russia is distinguished with its huge reserves of mineral resources amounting to more that 20 % of the world reserves. It enables Russia to take a special position among the industrially-developed countries. The natural resources used in the Russian economy make 95.7 % of the national wealth. They include the reserves of fresh water and mineral resources (oil, gas, coal and ores) that need large transportation coasts to be delivered to the sites of their processing. The mineral resources prevail in the Russian export to the CIS

countries, Western Europe, China and Japan. They remain the vital structural constituents of the global ecological systems. The Russian Federation ranks No.1 worldwide in terms of the natural gas reserves, No.2 in terms of crude oil production, and No.3 in terms of the coal reserves. It also ranks No.1 worldwide in terms of the explored iron ore reserves, No.2 in terms of the Sn ore

reserves and No.2 in terms of the Pb ore reserves. The Russian forest resources are the largest worldwide.

On June 12, 1990 the First Congress of People's Deputies of the RSFSR declared the state sovereignty of Russia. After 1991 and disintegration of the USSR, it is the Russian Federation.

Tajikistan

Tajikistan (The Republic of Tajikistan, RT) is a democratic republic in the southeast of Central Asia. The capital of the Republic is Dushanbe. The monetary unit is Somoni (1Somoni=100 Dihram), 1 US Dollar = 3.45 Somoni (2006). The state language is Tajik (as from 1989). Russian is a language of interethnic dialogue.

The head of state is the president (Emomali Rahmon - the President of Republic of Tadjikistan), who is elected for 7 years and can not be reelected more than for two periods in succession. The President is also the Supreme Commander-in-Chief of the RT Armed Forces. The supreme representative and legislative authority of the Republic is Majlisi Oli (the Parliament). The executive power in the Republic is vested in the Government. It abdicates as a new president is elected. The local state power is represented by representative (Majilis of People's Deputies) and executive authorities of provinces, municipalities and districts. The governing bodies in the rural areas are called "Jamoats".

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The area of the country is 143.1 thousand sq. km. Tajikistan shares borders with the Republic of Uzbekistan, Republic of Kyrgyzstan, People's Republic of China and Islamic Republic of Afghanistan. The Republic of Tajikistan consists of 3 provinces, 45 districts (including 8 districts of republican subordination), and 19 municipalities. The largest cities of the Republic are Dushanbe,

Leninabad, Kurgan Tyube, Kulyab. The population is about 7 million people. The country is inhabited by more than 80 nationalities, including Tajiks (62 %), Uzbeks (24 %), Russians (about 3 %), Tatars, Kyrghyz people, and other nationalities.

The country generates about 16.7 billion kWh of electricity (2005) mainly at hydroelectric power plants. The key industries include: nonferrous metallurgy, light and food industries. The main branches of farming include: cotton growing, silk farming, fruit growing and viniculture*; in mountain areas - grain agriculture and livestock farming*.

In September 1991, the Supreme Soviet of the Republic adopted the Declaration of Independence and approved the name – the Republic of Tajikistan.

Uzbekistan

Uzbekistan (the Republic of Uzbekistan, RUz) is a country of Central Asia. It shares borders with Kazakhstan, Turkmenistan, Tajikistan, Kirghizia and Afghanistan. It has a coastline of the Aral Sea in the northwest. The total area is 447.4 thousand sq.km. The capital is Tashkent with a population of 2.3 million people. The head of state is the president, elected for 7 years. The President of the Republic of Uzbekistan is Karimov I.A. The supreme state representative body shall be the Oliy Majlis of the Republic of Uzbekistan that exercises legislative power. The Oliy Majlis of the Republic of Uzbekistan shall consist of two chambers — the Legislative Chamber (the lower chamber) and the Senate (the upper chamber). The term of powers of the Legislative chamber and the Senate of the Oliy Majlis of the Republic of Uzbekistan — five years.

More than 100 nations and nationalities live in the territory of Uzbekistan. The population of the country is more than 26.5 million people (Uzbeks - 71.4 %, Russians - 8.3 %, Tajiks - 4.7 %, Kazakhs - 4.1 %, Tatars - 2.4 %, Karakalpaks - 2.1 %, others - 7 %). The state language is Uzbek. Russian is a language of interethnic dialogue. The monetary unit is Sum.

The Republic of Uzbekistan consists of the Karakalpak Autonomous Republic and twelve provinces (viloyats).

The climate is continental with little precipitation expected annually.

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Uzbekistan is rich in mineral resources, about 100 types of mineral resources found in its territory. The Republic is also a leader in production of gold. It ranks No.4 worldwide in terms of its explored reserves. Uzbekistan is one of the ten largest gas producers in the world. Other larger deposits of mineral resources include deposits of coal, uranium ore, nonferrous and rare-earth metals (silver, copper, lead, zinc, tungsten and molybdenum).

The major part of the Uzbekistan industrial potential remains associated with the agriculture and processing of cotton. Other important industries of the national economy include the metallurgy, motor industry, chemical, food-processing industry and manufacture of construction materials. The most important agricultural branch in Uzbekistan is the cotton growing. Besides, fruits, vegetables, grain (wheat, rice and corn) are raised.

On August 31, 1991, the Law on State Independence was adopted. On September 1, 1991, the Republic of Uzbekistan was declared an independent state.

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