AEC Offers Trade, Investment Opportunities For EAEU - Outgoing Russian Envoy

By Nur Ashikin Abdul Aziz and Tengku Faezah Tengku Yusof KUALA LUMPUR, Feb 5 (Bernama) -- The setting up of the Asean Economic Community (AEC) by year end during Malaysia's chairmanship offers the region a great opportunity for trade and investment with the Eurasian Economic Union (EAEU), especially Russia. Outgoing Russian ambassador to Malaysia Lyudmila G. Vorobyeva said EAEU, which was established early this year, was looking for new markets like Asean for economic cooperation. Currently, EAEU comprises Russia, Belarus and Kazakhstan but it will soon be joined by Armenia and Kyrgyzstan, she told Bernama in an interview at Bernama headquarters here Thursday. "We (EAEU) are looking at a really vast market with a very big population and are really hopeful to use this potential to develop our own economy and to boost bilateral trade and investment ties. "For Russia, it is very important as we are under the European Union (EU) and the US sanctions," she said, adding that this prompted, Russians businesses to turn more towards Asia Pacific, especially Asean to look for business opportunities. The EAEU is an integrated single market of 176 million people with gross domestic product of over US$4 trillion. Vorobyeva said that the AEC, with a market of over 600 million people, would definitely be of interest to Asean dialogue partners, including Russia. Celebrating 20 years of Asean dialogue partnership next year, Vorobyeva said the regional grouping has been one of Russia's priorities in its foreign policy. "We attach great importance in boosting our ties with Asean as an organisation and bilateral ties with its members, especially Malaysia now that it has become the Asean chairman and the coordinator of Russia-Asean dialogue (2012-2015)," she said. Vorobyeva said Russia is expected to attend various meetings hosted by Malaysia during its chairmanship, including the Asean Defence Minister Meeting, the Asean Regional Forum on Security and the East Asia Summit. Russia's engagement with Asean dated back in July 1991 when it attended the 24th Asean Ministerial Meeting (AMM) in Kuala Lumpur as a guest of the Malaysian government. Russia was subsequently elevated to Asean's full dialogue partner at the 29th AMM in July 1996. On Russia-Malaysia bilateral trade, Vorobyeva said the volume reached US$2 billion last year, an estimated increase of 25 per cent, but Russia is still ranked 26th among Malaysia’s trade partners. She said that Russia is interested in attracting more Malaysian investors and hoped to further enhance cooperation in sectors such as high technology, defence, civilian aviation, aerospace, oil and gas technologies, and food security. Vorobyeva said Russia has reacted to the sanctions by taking counter measures such as banning food imports from the EU and shifting focus to Latin America and Asean, including Malaysia for further cooperation. Russia and Malaysia have started joint investment projects in biotechnology, fertilisers production and distribution, she added. -- BERNAMA