Russia seeks to boost bilateral trade

Russia seeks to boost bilateral trade

Thailand urged to sign more aviation deals.

Russian Helicopters hopes to seal more deals with Thailand. It says its products are as reliable as Western-built helicopters yet half the cost. BOONSONG KOSITCHOTETHANA
Russian Helicopters hopes to seal more deals with Thailand. It says its products are as reliable as Western-built helicopters yet half the cost. BOONSONG KOSITCHOTETHANA

Besides its key traditional trading partners in Asia such as China and India, Russia is counting on Thailand for expanded bilateral trade.

Moscow's intent to foster economic ties with Thailand has now become even more visible as the Western world seeks to isolate Russia and its companies with sanctions.

Thailand hopes to make it on the list of Russia's principal global trading partners, excluding the Commonwealth of Independent States, China, India and Vietnam as well as several South American nations that share certain political doctrines and economic policies with Moscow.

Despite Thailand's past inclination towards the West, Russia does not perceive Thailand as an ally of the West, and such a perception will pave the way for greater bilateral ties, said Viktor Kladov, head of the International Cooperation Department at Rostec State Corporation.

Heralding a new era of closer ties is the bilateral accord signed in Bangkok in April by Russian Prime Minister Dmitry Medvedev and his Thai counterpart Gen Prayut Chan-o-cha, aimed at doubling bilateral trade to US$10 billion by next year.

Bilateral trade between the two countries surpassed $4 billion last year but in Russia's favour, according to the Russian Federal Customs Service.

"We don't view Thailand as an ally [of the West] but rather as a close friend for more than 100 years," said Mr Kladov.

He was referring to King Chulalongkorn's visit to Russia in July 1897, when diplomatic relations between Russia and Siam were formalised.

Rostec, a conglomerate covering more than 700 state entities in Russia, is keen to turn the targeted trade volume into a reality.

The conglomerate is in talks to provide new markets for Thai commodities such as rubber, rice, food and fishery products.

In return, it wants Thailand to purchase helicopters, commercial aeroplanes, trucks, defence systems and high-tech products among others.

"We are in the middle of negotiations, and that will be a complex deal," Mr Kladov said.

JSC United Aircraft Corporation, part of Rostec, is seeking to boost sales of its Sukhoi Superjet 100, a 100-seat twin-engine jet, to Thailand.

Last year, the Royal Thai Air Force (RTAF) agreed to acquire three of the aeroplanes.

Meanwhile, Russian Helicopters, under Rostec's umbrella, is on course to deliver two more Mi-17 medium multirole helicopters to the RTAF next year, adding to three units delivered last year, marketing director Valery Pashko said.

The company has proposed two other helicopter versions for Thailand -- the Mi-8/17 series and Ansat light helicopter.

Russian Helicopters' sales pitch to Thailand is that their products are as reliable as Western-built helicopters yet half the cost.

That message is echoed by other Rostec subsidiaries wanting to boost hardware exports to Thailand.

About 8,500 Russian helicopters are operating in more than 100 countries.

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