Purisima: There’s room for growth in Asean-Russia economic ties

MANILA, Philippines - Russia’s economic ties with the Association of South East Asian Nations still has plenty of room for growth given ASEAN’s growing middle class, robust consumer spending and increased investments for infrastructure.

Purisima, who made this pitch during the 1st Russia-ASEAN business forum held in St. Petersburg, Russia, said that with Europe’s continuing debt crisis, Russia and ASEAN should “start looking to each other as new global growth drivers.”

“I believe that there is substantial potential between ASEAN and Russia that has not yet been tapped. Our trade between each other, from the ASEAN standpoint, represents less than one percent, and from the Russian standpoint, represents just a little over 1.5 per cent”, Purisima said.

Russia, which is part of a growing list of energy supplier to ASEAN,  is currently on investment mode with particular focus on infrastructure.

The total trade between ASEAN and Russia has grown 54.1 percent  from $9.06 billion in 2010 to $ 13.97 billion in 2011. 

In contrast, the total FDI from Russia flows to ASEAN declined from  $60 million to $44 million during the same period.

“ASEAN presents a huge potential for Russia. With its young population, expanding middle class, rising consumer spending, and increased investments in infrastructure, ASEAN would be growing in the next couple of years and Russian business would be wise to take part of this amazing growth story” Purisima pointed out.

Organized by the Russia-ASEAN Business Council with support from the Chamber of Commerce and Industry of the Russian Federation and the Ministry of Foreign Affairs, the Russia-ASEAN Business Forum brought together key business leaders from Russia and the ASEAN Business Advisory Council to discuss opportunities for closer economic and business relations between Russia and ASEAN.

Joining  Purisima in the forum were Georgy Petrov,(vice president of the Chamber of Commerce and Industry of Russia), Dr. Nam Viyketh, Lao (Minister of Industry and Commerce), Alexey Repik (Co-Chairman of Business Russia Association),  Fauziah Talib (chair of the ASEAN Business Advisory Council) and Aleksandr Ruchyov (president of Morton Group, one of Russia’s largest infrastructure companies).