Russian Businesses Bullish on Expanding in PH — DTI Chief

MAKATI — Department of Trade and Industry (DTI) Secretary Ramon Lopez revealed that Russian businesses are keen on expanding their operations to the Philippines (PH).

During a meeting with Russian Deputy Minister of Industry and Trade Aleksey Gruzdev and delegation of Russian business executives on 25 September 2019, Sec. Lopez shared PH’s priority industries that Russia can participate in. He highlighted pharmaceutical, medical, as well as vehicle manufacturing sectors that both countries can collaborate on.

“The Philippines, under the leadership of President Rodrigo Duterte welcomes the interest of Russia to pursue economic cooperation engagements with the government and our business sector. We are optimistic that this good bilateral relationship between the two countries would drive investments, trade, and jobs,” said Sec. Lopez.

According to the trade chief, Russian businesses are exploring opportunities on various industries including airport infrastructure, aviation, shipbuilding, railways, satellite navigation system, waste water management, and power.

Deputy Minister Gruzdev expressed confidence with both countries’ strengthened business relationship and economic partnership. He likewise reiterated Russia’s openness for trade cooperation.

The meeting was held prior to President Duterte’s visit to Moscow this week, where DTI will bring over 150 business delegation to link with possible Russian counterparts. Various business agreements will also be signed during the visit. These include sale of PH canned fish and coconut products, as well as distributorship of lifestyle products and healthcare systems.

Also present during the meeting were DTI Assistant Secretary Angelo Taningco, Foreign Trade Service Corps Executive Director Magnolia Uy, Board of Investments Executive Director Ma. Corazon Dichosa, Russian Ambassador Igor Khovaev, and Ministry of Industry and Trade Deputy Director for Asia, Africa, and Latin America Aleksey Meshkov.

PH Food Exporters Showcase Products in Russia

As part of the Department of Trade and Industry - Export Marketing Bureau’s (DTI-EMB) approach in expanding Philippine exports, the Philippines will participate in an Outbound Business Matching Mission (OBMM) to Moscow, Russia on September 20 to October 01, 2019.

This mission is in collaboration with the Philippine Trade and Investment Center (PTIC) - Moscow and Department of Agriculture (DA). The OBMM is just in time for the WorldFood Moscow 2019 that will be held on September 24 - 27, 2019 at the Crocus Expo International Exhibition Center, Moscow, Russia.

The delegation will be composed of 14 Philippine food companies who will feature tropical fruits and juices, artisanal chocolates, banana chips, crackers and biscuits, virgin coconut oils and other coconut products, noodles, condiments, and fishery products.

There will be business matching sessions and market scanning. The delegates will also have a briefing with the Eurasian Economic Commission (EAEC) to inform them on the preferential tariffs provided to beneficiary countries including the Philippines. The EAEC is an economic union composed of Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia with a consumer base of over 170 million.

The OBMM will also provide opportunities for exporters of fishery products which were recently accredited by Russia to promote their products.

“We are now looking at Russia as an emerging market for Philippine exports as we take advantage of the improving trade relations of both countries,” DTI - Trade Promotions Group Undersecretary Abdulgani M. Macatoman said.

WorldFood Moscow is a recognized international food and drink exhibition in Russia which could be an entry point for international manufacturers who aim to penetrate the Russian market. The event connects thousands of businesses from around the world with Russia’s key food and drink buyers, including retail representatives from Russia’s leading supermarket chains, wholesalers, hotel-restaurant-café sector, and food manufacturers.

In 2018, Russia was the Philippines’ 21st trading partner with a total bilateral trade valued at US$1.36 billion or 0.74% of total Philippine trade with the world valued at US$182.15 billion. It is the 33rd export market valued at US$86.07 million or 0.12% share of the total Philippine exports to the world valued at US$69.31 billion and 19th import source accounting for US$1.27 billion or 1.13% share of the total Philippine imports from the world valued at US$112.84 billion.

Moreover, the exports of food products is valued at US$17.12 million in 2018. The top 3 Philippine food exports to Russia were desiccated coconuts, other fruits, nuts, and bananas, including plantains, fresh or dried.