Russian firms bullish on Philippines

MANILA, Philippines — Russian companies have expressed interest to invest in critical sectors of the Philippine economy after a state and business delegation met with local counterparts last week, the Board of Investments (BOI) said.

The BOI said Russian firms have identified the sectors of transport infrastructure/construction, aerospace, iron and steel, automotive, power generation equipment, minerals processing and agriculture as potential areas for investments or joint venture development.

The agency attributed the growing interest among Russian companies to invest in the Philippines to the recently-established stronger economic ties between the two countries.

“The visit of President Duterte in May 2017 resulted in an increase in the number of incoming Russian business delegations to the Philippines and visits of government officials to Russia,” Trade Undersecretary Rowel Barba said.

A roundtable meeting between Russian government and business delegation and their local counterparts was held last week as a side activity for the Philippines-Russia Joint Commission on Trade and Economic Cooperation meeting.

Barba said the visit showed the commitment of both sides in pursing closer business relations that would hopefully increase bilateral trade and investments.

“There are number of trade and investment opportunities that the Philippines can offer to Russia,” Barba said.

The BOI is encouraging more Russian firms to consider the benefits in making the Philippines as their production hub and gateway to the ASEAN and Asia markets, which in turn would complement their existing foothold in Europe.

Last year, the agency said Russia ranked as the 24th import supplier, 29th trading partner and 37th export market of the Philippines. There is also a 23.12 percent increase recorded in the country’s exports to Russia from $49.83 million in 2016 to $61.35 million last year.