Russia pushes trade, investment links with Philippines

REPORT FROM BUSINESSWORLD The Russian Government is keen on investing in the Philippines’ energy, transportation and infrastructure sectors, Russian Foreign Minister Sergei Lavrov said over the weekend. Russia is also optimistic that bilateral trade could exceed last year’s $170 million, given its current efforts to improve links with Asia, Mr. Lavrov said. "This year, we see a sign of hope. For the first six months, the trade volume increased by 45% from the same period in 2006," he said during a forum last Friday with government and business leaders at the Asian Institute of Management. Investment Areas In particular, Russia plans to invest in the exploration and production of oil and gas, railway construction, development of port facilities, as well as infrastructure in Philippine economic zones. Russia is also ready to offer high-technology engineering services to the Philippines, Mr. Lavrov said. He also said two food industry giants have expressed interest in investing in food and refreshments production in Russia’s key eastern port city, Vladisvostok. "We are satisfied with how we cooperate with the Philippines. In the area of energy cooperation with Russia, which is an area where we have moved quite far, we would be ready to discuss future cooperation with the Philippines," Mr. Lavrov said. To further strengthen regional cooperation with Asia, he said Russia has applied to join Manila-based Asian Development Bank’s pool of donor countries. The proposal was discussed during the 14th ASEAN Regional Forum in Manila last Aug. 2. In addition, he said the Philippine Chamber of Commerce and Industry and its Russian counterpart, the Chamber of Commerce and Industry of the Russian Federation, are expected to sign agreements of cooperation. "Overall, the level of cooperation is quite modest. Our business communities don’t know too much of each other and this information gap should be breached. This agreement between the two chambers is a step in the right direction," he said. Cebu Traders Members of a Russian trade and investment mission met last March with some Cebu-based businessmen for possible cooperation in the tourism, food and furniture trade, with Russian officials saying the country’s population of 150 million is interested in fruits like mangoes and bananas. Russia, they said, is also a potential tourism market. The Cebu Chamber of Commerce and Industry (CCCI) and the Cebu Consulate of the Russian Federation are leading a delegation to Russia this Sept. 20-29 for a trade mission. CCCI President Francis O. Monera said the activity seeks to strengthen trade ties between the said country and the Philippines, especially this city, identify potential business partners, promote investments and joint ventures and offer an opportunity to participants to obtain a better understanding of the business environment in Russia. The delegation, which will focus on trading, will travel to Moscow and St. Petersburg and other locations, depending on the interests of the delegates. In an interview, Cebu Honorary Consul to Russia Armi L. Garcia said one of the major objectives of the Cebu consulate office is to promote trade and business. High-end market She said Cebu-made furniture and fashion accessories have gained the interest of Russians. "Russians love products of higher quality. While everyone else [like furniture and fashion accessory exporters] are into China, we [Cebu] are into the higher-end market. This is a good match with the demand in Russia," she said. During the planned nine-day visit, the delegation plans to meet ministers and officials of the Russian Federation to discuss economic links and to promote Philippine goods and services. The delegation also plans to have one-on-one business meetings with Russian counterparts with matching business interests and visit industrial plants or factories in Russia. — B. S. Sto. Domingo and J.B. Natad/BusinessWorld