To Russia, with interest

Local chamber takes cue from Duterte, plans to revisit sisterhood pact

THE Mandaue Chamber of Commerce and Industry (MCCI) is going to revisit its sisterhood agreement with Russia, following the Duterte administration’s signals that it would forge a stronger trade alliance with one of the world’s most powerful economic powerhouses.

“We are now reviewing our agreements in the past and trying to see where we can capitalize,” said MCCI president Glenn Anthony Soco. Soco said the chamber is aligning its programs with that of the government to ensure that the business community of Mandaue would reap economic opportunities.

Along with delegates from Cebu’s local government units, academe, and private sector, MCCI embarked on a trade mission to Russia and visited Moscow, Vladimir Oblast and St. Petersburg in 2008.

During their trip to Russia, MCCI signed a memorandum of understanding (MOU) with the Vladimir Chamber of Commerce and Industry (VCCI).

The agreement binds both chambers to arrange for information exchanges and create opportunities to promote their products and services to both the Philippine and Russian markets.

Opening up

The Philippines’ diplomatic relationship with Russia spans 70 years but is not really mature in terms of trade and investment and commercial relationship, according to the foreign affairs department.

President Rodrigo Duterte has said he would open all avenues of trade and commerce for China and Russia. Among the sectors that would be opened for potential Russian and Chinese investors are telecommunications and commercial aviation.

In 2015, total Russian-Philippine trade turnover amounted to just $0.58 billion, a significant drop from $1.4 billion in 2014.

Among the exports of the Philippines to Russia are carrageenan, seaweeds and other algae; parts of air-conditioning machines; and desiccated coconuts. Oil and petroleum products account for 88 percent of Russia’s exports to the Philippines.

In October 2016, Philippine exports increased for the second straight month after 11 months of decline. Russia, however, was not among the top 20 countries that bought Philippine goods and services. That list continued to be led by Japan, the United States, China, Hong Kong and Singapore.

Neither was Russia among the top 20 countries where the Philippines sourced its imports, at least as of October 2016.

Honorary Consul of the Russian Federation Armi Lopez Garcia, in earlier interviews, said she sees President Duterte’s pronouncement to forge a stronger trade alliance with Russia as an opportunity to open up more business deals between nationals of the two countries.

Interest in tourism, food

Garcia, who is the founding chair of the Philippine Russian Business Assembly (PRBA), said she was happy with the recent developments because Russia is still an unexplored market for Philippine producers.

The consul said there was so much potential for growth between the two countries, especially in technology transfer in industries like solid waste management and military and defense.

Garcia also said there is great interest in tourism and food exports. “Most of the interest is in tourism. However, with the very good impression that our President has brought to the Russian government, I’m sure the Russian government will encourage more business people to come and to really explore business opportunities in the country,” said Garcia.

Food exports like dried mangoes and seafood are also in rising demand in Russia.

When he met with Russian President Vladimir Putin last month in Peru, President Duterte reprotedly said he might take a cue from Russia and pull the country out of the International Criminal Court, after “hypocritical” criticism of his administration’s war on illegal drugs. He has repeatedly expressed admiration for both China and Russia, while criticizing a treaty ally, the United States.