CEBU, Philippines - A strategic alliance seen to spur business and trade development between Russia and the Philippines is born.
Honorary Consul of the Russian Federation in the Philippines Armi Lopez-Garcia announced the installation of the Russian-Philippine Business Council (RPBC) which could pave the way for more trade and economic opportunities for Filipino entrepreneurs.
The formation of RPBC, which was approved by the Chamber of Commerce and Industry of the Russian Federation early this month, is also headed by Garcia as the president.
Just recently, the RPBC signed a memorandum of agreement (MOA) with the Philippine Russian Business Assembly (PRBA) which is its counterpart in the Philippines.
“This historic MOA signing of cooperation between the RPBC and the PRBA is proof of the two countries’ commitment to strengthen economic and cultural ties between them,” Garcia said.
For the Philippines, she said, the development should translate to more tourists, more trade, and more investments from Russia. This should also further open the Russian economy for more exports from the Philippines.
The approval of the formation of the Russian-Philippine Business Council last November 9 made the RPBC the 68th business council created under the Chamber of Commerce of the Russian Federation, said George Petrov, vice president of the Russian Federation’s commercial and trade department.
“The RPBC will assist in the development and strengthening of mutually advantageous bilateral economic relations to businesses giving primary attention to medium-sized businesses,” said Petrov.
Petrov said the formation of the RPBC was approved because of the growing trade and economic relations between Russia and the Philippines.
“Bilateral trade turnover has considerably increased if you compare 2009 to 2010. Growth in comparison with 2009 has exceeded 80 percent. As for this year, bilateral trade turnover has exceed $713 million. It is expected that by the end of the year goods turnover between Russia and the Philippines will pass the $1 billion mark,” said Petrov.
Petrov emphasized the growing interest from both countries in transport, communications, tourism, food, telecommunications, energy and power --- healthy signs of more vibrant economic relations in the future.
Record from the Department of Trade and Industry (DTI) revealed that Russia shows a strong potential as a market for finished goods from the Philippines.
Likewise, data from the Bureau of Export Trade Promotion showed that Philippine exports to Russia increased by 15 percent to $39.09 million in 2009 from $33.92 million in 2008. Top Philippine exports to Russia in 2009 were aircraft parts, desiccated coconut, carrageenan, lighters, personal care products, and banana chips.
According to the DTI, there is a steady demand for spare parts with 2.5 million Russians using imported cars. Consumption is also likely to increase for canned products, frozen crab meat, and a range of processed seafood products including canned, pickled, bottled or smoked items.
Snack foods will also become an increasingly important part of Russia’s food culture, with particular emphasis on value-added products. The demand for more ship vessels in Russia is an opportunity for the thriving Philippine shipbuilding industry that services major shipbuilders like Tsuneishi and Hanjin.
Olga Kharlamov, first secretary of the Ministry of Foreign Affairs, said the creation of the RPBC and the MOA signing between the RPBC and PRBA is another fruitful result of the 35-year diplomatic relations between Russia and Philippines.
Kharlamov expressed hope that the PRBC will further contribute to the strengthening of political , business and diplomatic ties between the two countries. (FREEMAN)