3 - Current State of Russia–ASEAN Trade and Economic Relations

Summary

GENERAL ATMOSPHERE OF RELATIONS

Since the first seminar on ASEAN–Russia relations in Singapore in March 2005, we have seen some new political developments: the First ASEAN– Russia Summit was held in December 2005, the Comprehensive Programme of Action to Promote Cooperation between the ASEAN and the Russian Federation in 2005–15 and the Agreement on Economic and Development Cooperation were signed in Malaysia in December 2005.

In 2006 a ten-year anniversary of Russia–ASEAN dialogue was celebrated as well as a thirty-year anniversary of Russia/Soviet Union diplomatic relations with the Republic of Philippines — the country-in-charge of the ASEAN–Russia dialogue this year. According to the statement made by Foreign Minister Lavrov of the Russian Federation in Malaysia in July 2006, both sides are working for an implementation of the Agreement on Economic and Development Cooperation between Russia and ASEAN. The question is whether all those agreements by themselves can influence greatly or will boost development of bilateral economic and trade ties?

As the First ASEAN–Russia Summit of 2005 has shown, it is easier to improve further a rather developed political dialogue than to achieve a real breakthrough in economic cooperation, particularly when there is not much history in Russia–ASEAN economic relations, except for Russia–Vietnam relations during the Soviet times and, to some extent, Russia/Soviet Union– Singapore bilateral economic ties.

Russia–ASEAN economic ties are still not big news in media coverage both in Russia and ASEAN member-countries. On the other hand, Russia's eagerness to be part of East Asia economically cannot be achieved without development of comprehensive economic ties with ASEAN as a group as well as with its major individual members (ASEAN-6).

In general, Russia's economic relations with ASEAN represent primarily a part of Russia's involvement into a forming united East Asia economy under the process of regional economic integration, but not a separate issue.

That is why Russia's economic relations with ASEAN as a group are still waiting for self-establishment. It is clear that much has to be done before Russia–ASEAN economic ties will accumulate its own value for both sides and eventually become well established.