Russia–ASEAN

5 September 2019

Russia–ASEAN

KEY CONCLUSIONS

Good prospects for economic cooperation between Russia and ASEAN countries

“Talking about Russia–Indonesia relationship – economic relationship, of course, both trade and investment, – I think we have a very big capacity, given the fact that both our countries, Russia and Indonesia, are G20 members. Among the G20 members with economy of this size, there is a lot of potential to increase both trade and investment. If you look at the current data, we are actually in a healthy condition. Indonesia is one of the top ten exporters to Russia,” Bambang Brodjonegoro, Minister of National Development Planning of the Republic of Indonesia.

“This time, we arrive to Vladivostok, and we learn that there is big potential for the energy sector here. We expect LNG shipments from Vladivostok to the southern parts of Thailand to develop power supply,” Leophairatana Prachai, Chief Executive Officer, Chairman of Executive Committee, TPI Polene Public Company Limited.

Cooperation between the Russian Federation and the countries of Southeast Asia is successfully developing in many areas

“This year marks the tenth anniversary of the Russia–Singapore Business Council; initially when it was created in 2009 on the initiative of the Russian Chamber of Industry and Commerce with the support of the Ministry of Economic Development and the Rostec State Corporation, the Council included just ten companies. Now we have 70 Russian enterprises and over 40 Singaporean companies,” Nikolay Volobuev, Deputy General Director, Russian Technologies State Corporation.

“Our main achievement is the creation of the RS Trade electronic trade and service platform, which was announced at the Russia–ASEAN summit in Sochi in May 2016, and its work was announced in November of the same year. <...> First of all, this platform allows to promote the products of Russian manufacturers in the countries of Southeast Asia through Singapore,” Nikolay Volobuev, Deputy General Director, Russian Technologies State Corporation.

“We are highly satisfied with our Southeast Asia roadshow; we promoted two products: our Ansat helicopter and Mi-171A2. 20 firm contracts and 20 option contracts were signed for Ansat, and about 20 option contracts for Mi-171A2, totaling nearly half a billion US dollars,” Aleksey Pakhomenko, Deputy General Director for Programs and Strategy, Russian Helicopters.

“As a result of the first half of 2019, we see an increase in export deliveries of completely new types of products, such as nitrogen fertilizers – an increase of nearly 200%, although in absolute terms the numbers are still fairly small – lumber, sunflower oil and food products,” Maxim Kobin, Managing Director for Client Work, Russian Export Center.

PROBLEMS

Weak starting positions

“We set a goal for ourselves to increase the volume of non-primary and non-energy exports: with ASEAN countries it currently stands at only USD 9 billion, which gives us food for thought,” Maxim Kobin, Managing Director for Client Work, Russian Export Center.

“We have active links with Japan, with other countries, but very few links with Russia,” Leophairatana Prachai, Chief Executive Officer, Chairman of Executive Committee, TPI Polene Public Company Limited.

“781 helicopters of various types are presently in operation in ASEAN countries, of which only 41 are Russian-made. Unfortunately, our aircrafts are poorly represented so far. According to our forecasts, the market capacity until 2030 will be about 300 helicopters, totaling more than 2 billion US dollars. In this timeframe, we expect to deliver at least 150 aircrafts,” Aleksey Pakhomenko, Deputy General Director for Programs and Strategy, Russian Helicopters.

Low level of mutual awareness between business circles

“The Indonesian business community does not know much about the Russian business community. It is rather unknown, and I believe it is the same for Russia: many Russian businesses may not know very well about Indonesian economic potential,” Bambang Brodjonegoro, Minister of National Development Planning of the Republic of Indonesia.

SOLUTIONS

Networking between governments and businesses

“The history of our relationship, which was previously a dialogue, goes back twenty years. At the meeting held in Singapore, a new agreement was signed, the level of partnership was raised to strategic interaction. We hope that the level of political relations, which we consider quite high, will have an effect on economic relations as well,” Sergey Katyrin, President, Chamber of Commerce and Industry of the Russian Federation.

“We hold bilateral business conferences, seminars, various events with the participation of Russians and Singaporean politicians. The Russia–Singapore business dialogue was also organized, which was aimed at strengthening mutual trust. We aim to organize regional infrastructure in Southeast Asia, with a goal to strengthen cooperation,” Winnie Teo, General Director, Progression Engineering (S) Pte Ltd.

Developing transport

“Today we are ready to announce the launch of a flight from Vietnam to Vladivostok. It will be a direct flight from Cam Ranh, and another one with a stopover in Seoul,” Nguyen Thanh Hung, Chairman of the Board of Directors, SOVICO Groups.

Expanding cooperation in education and culture

“An important project to strengthen cooperation was the initiative of the Russian government to ensure the interaction of educational and technical institutions of Russia and Singapore. Preparatory courses will be organized at the centre, as well as the opportunity to receive education in a variety of disciplines,” Winnie Teo, General Director, Progression Engineering (S) Pte Ltd.

“Vietnam is Russia’s reliable partner in ASEAN. Hundreds of thousands of Vietnamese people studied or grew up in Russia. <...> We believe that through Vietnam Russia can enter into successful trade with ASEAN countries,” Nguyen Thanh Hung, Chairman of the Board of Directors, SOVICO Groups.

For more information, visit the Roscongress Foundation’s Information and Analytical System at www.roscongress.org

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