Asean-Russia eye cooperation expansion via new initiatives
Asean-Russia eye cooperation expansion via new initiatives
Asean and Russia will look to expand their cooperation, notably economically, through newly proposed initiatives including connectivity and a possible free trade area.
Economic ministers from the 10-member bloc and Russia instructed senior economic officials to further discuss Russia's proposal to establish the Asean-Russia Economic Partnership on connectivity.
The instruction was made following their meeting in Vientiane last week.
The officials will also carry out a feasibility study of a possible free trade area between Asean and the Eurasian Economic Union (EAEU), which comprises Belarus, Kazakhstan, Russia, Armenia and Kyrgyzstan.
Deputy Director General of the Foreign Trade Policy Department and the Ministry of Industry and Commerce, Mr Saysana Sayakone said further talks are needed to work out details, saying that connectivity comprises many aspects including land connectivity.
He believed the proposals were good initiatives which are expected to give a boost to increase trade and investment between Asean and Russia.
Asean's total trade with Russia reached US$13.4 billion in 2015, accounting for 0.6 percent of Asean's total trade, placing Russia as Asean's eighth largest trading partner, according to Asean Trade statistics.
Commenting on the proposed connectivity initiative, Director of the Asean Centre at MGIMO University and the Ministry of Foreign Affairs of Russia Dr Victor Sumsky noted that increasing connectivity, notably trade routes between both sides will drive trade and investment.
“We should give more attention to the prospect of communicating with each other in trade and investment via Russia's far east as the Russian gateway into Asia,” he told Vientiane Times during his working trip to Laos.
The director attended the 5th ERIA (Economic Research Institute for Asean and East Asia) Editors' Roundtable under the theme “Turning Vision into Reality for a Dynamic Asean Community” held on Monday in Vientiane.
Dr Victor added that establishing new transportation routes or transportation corridors along with exploring all the possibilities to improve logistics and initiating investment projects between Asean and Russia would bring mutual economic benefits.
“These are the projects, which in the near future can generate a lot of mutual profits,” he said.
He stated that Russian businesses were very interested in how the establishment of the Asean Economic Community could be conducive to Russian businesses coming in to Asean member countries to establish their presence.
The director noted that Asean offers a number of investment opportunities and, in the context of Laos, hydropower development provides investment potential.
Asean and Russia earlier this year marked the 20th anniversary of their dialogue relations with a Commemorative Summit held in Russia.
The number of visitors from Russia to Asean in 2014 was 2.37 million people while Asean and Russia have held regular dialogue to promote tourism. The 4th Meeting of the Asean-Russian Federation Tourism Consultation was held on January 19, 2013 in Vientiane, which was in conjunction with the Asean Tourism Forum (ATF) 2013.
