Malaysia-Russia bilateral linkages to expand 11 pct this year

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KUALA LUMPUR: Bilateral trade between Malaysia and Russia this year is expected to expand 11 per cent from US$2 billion last year through greater diversification of economic linkages in areas such as nano technology, energy and space exploration.

Russia’s Ambassador to Malaysia, Lyudmila G Vorobyeva, said there was also potential for tie-ups in tourism and education and vast opportunities for Malaysian companies to invest in infrastructure development in her country.

She also did not rule out the possibility of a free trade agreement (FTA)with Malaysia.

“If we have offers from Malaysia, why not,” she said when asked on a possible FTA with Malaysia during a media briefing yesterday.

However, she said Russia was not interested in the Trans-Pacific Partnership agreement being negotiated by nine major regional economies including Malaysia and the US.

The Russian envoy said Russia, which was acceptd as the 155th member of the World Trade Organisation just last month, was also interested in improving ties with other countries particularly in the Asia-Pacific region.

“We want to explore more free trade agreements with other countries.

“Currently, we are negotiating with New Zealand and Vietnam,” she said.

“Last year, our trade with Asean amounted to US$15 billion, of which US$2 billion is with Malaysia,” said Vorobyeva, who has been Russia’s envoy in Malaysia for two years now.

Currently, Malaysia is Russia’s fourth largest trading partner in Asean behind Thailand, Vietnam and Singapore.

She said Malaysian companies were also welcomed to invest in Russia as it offers vast potential for investment, but lamented there was only one Malaysian firm investing in Russia, in a timber processing facility worth US$200 million.

“We need more foreign investments in infrastructure and tourism development particularly in the southern part of Russia and more so with the upcoming Winter Olympics in 2014,” Vorobyeva said.

Sochi, a resort city in Krasnodar Krai and situated along the shores of the Black Sea, will host the games in February 2014.

Russia is keen to develop the southern part of the country, which is known for its subtropical climate and is a popular tourist destination, she said. — Bernama