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Central Asia

Russia seeks cozier ties with ASEAN
By Sergei Blagov

MOSCOW - Russia, with its vast and resource-rich regions in its far east, is keen to join Asia's economic and political integration. Not surprisingly, therefore, that in recent days the Russian capital has witnessed a resurgence in diplomacy related to the 10-member Association of Southeast Asian Nations (ASEAN).

Thai Foreign Minister Surakiart Sathirathai visited Moscow from September 29 to October 1 to meet with his Russian counterpart, Igor Ivanov. According to the Russian official RIA news agency, it was agreed during the talks that Russia and Thailand shared similar views on a number of international issues, notably the key role of the United Nations.

Russian Foreign Ministry spokesman Alexander Yakovenko said that Moscow believed that there were "favorable conditions" now for increasing ties with Thailand, notably trade, as well as technology and military cooperation. According to Yakovenko, in 2001 bilateral trade reached US$410 million.

Russia mainly exports steel, chemical products and fertilizers to Thailand. Russia imports Thai sugar, rice and garment. Russia's entry to the World Trade Organization (WTO) would benefit Thailand by improving access for Thai farm products and the opening up of new sources for oil, Supachai Panitchpakdi, the WTO's director-general, has stated.

Surakiart also discussed the upcoming trip to Moscow of Thai Prime Minister Thaksin Shinawatra, who is due to pay a three-day visit from October 16 to 18. Thaksin and President Vladimir Putin are expected to discuss measures to increase trade through regular and barter deals.

The Thai government also reportedly planned to invite Putin to pay an official visit to Thailand in October 2003, when the country hosts the summit of leaders of the Asia-Pacific Economic Cooperation (APEC). Hence, Putin may become the first Russian leader to visit Thailand for over a century.

The Kremlin is also keen on stronger ties with the ASEAN's most populous nation. From September 25-28, Indonesian Foreign Minister Hassan Wirajuda traveled to Moscow, where he was reported to have urged the application of creative approaches to give bilateral trade a much needed boost.

According to Russian official statistics, in 2001 bilateral trade reached $203.5 million. In the wake of the 1997 Asian crisis, Indonesia canceled plans to procure Russian-built Sukhoi-30 jetfighters. However, Russia media outlets have recently speculated that Indonesia is considering the revival of this nearly $1 billion deal.

Overall, though, the Kremlin has conceded that trade with ASEAN nations was still low, and officials have long urged an increase in trade, while Russia has also called for summit meetings with ASEAN nations. Last March, Malaysian Prime Minister Mahathir Mohamad flew to Moscow on his first official visit to Russia, and the two nations pledged to develop economic ties.

In 2001, bilateral trade between Malaysia and Russia reached $422 million, or up by 9 percent compared to 2000. Russia exports steel, machinery and fertilizers, while Malaysia exports machinery, palm oil and rubber products to Russia.

Bilateral trade also include arms. Malaysia has long been understood to be considering the procurement of Sukhoi aircraft, notably the Su-30 jetfighter, following the purchase of 18 MiG-29s. Russian media outlets have speculated that Malaysia was reviewing the procurement of 78 Russian-made T-90S tanks, BTR-3 and BMP armored vehicles, as well as Metis-M anti-tank missiles and Igla hand-held air defense missiles.

Russia formerly had extensive ties with Vietnam, its once closest ally in Asia during the Cold War, and it still has important economic interests in the country, notably major hydrocarbon projects, such as the $1.3 billion Dung Quat oil refinery and the $1.5 billion Vietsovpetro joint venture, which pumps some 13 million tons a year in waters off the southern port of Vung Tau.

However, in the wake of Russia's early exit from the Cam Ranh Bay naval base in July, Moscow's political leverage in Vietnam is waning. Correspondingly, Russia's trade with Vietnam has dropped to levels close to Russia's trade turnover with other ASEAN nations. In 2001, Russia exported $360 million worth of goods to Vietnam, mainly machinery and steel, while Vietnam sold $190 million in merchandise to Russia, largely textiles and rice.

In a noteworthy development, Russia's ties with ASEAN nations may well take a certain nuclear coloration. Russia has a nuclear agreement with Vietnam, which reportedly involves continued maintenance of the research reactor in Dalat, Lam Dong province, in central Vietnam. Moreover, last March Vietnam announced plans to build its own nuclear power station in either Ninh Thuan, also in central Vietnam, or its neighboring province of Binh Thuan. It is understood that Russia could be interested in joining this project.

Earlier this year, Russia reportedly agreed to help Myanmar construct a center for nuclear studies and a research nuclear reactor with a thermal capacity of 10 megawatts, and two laboratories. The deal would also include structures for the disposal of nuclear waste and a waste burial site. Under the plan, Russia is to deliver the nuclear fuel. However, it is yet to be announced when work will begin.

Apart from economic issues, relations between Russia and ASEAN have recently witnessed a revival of policy dialogue. Earlier this year, Russian officials welcomed Philippine house speaker Jose de Venecia's proposal for an expanded ASEAN Plus 4 grouping. Explaining his ASEAN Plus 4 proposal (China, Japan, Korea and Russia), De Venecia said that Russia's presence may bring about geopolitical "balances of power" in Asia with its major powers in China, Japan, Korea and India.

Jose de Venecia said that this proposal amended the original ASEAN Plus 3 plan that sought to integrate China, Japan and South Korea in the context of Asia's economic and political integration. Therefore, recent developments indicate that ties between Russia and ASEAN may well be heading towards a new high. However, it remains to be seen whether official pronouncements will be accompanied by actual progress in economic and political ties.

(©2002 Asia Times Online Co Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)
 
Oct 3, 2002


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