15 October 2005. MOSCOW – Philippine Foreign Secretary Alberto G. Romulo and Russian Foreign Minister Sergey Lavrov reached agreement on a number of key issues, including expanding cooperation in the fields of energy, trade, culture, education, science and technology, sports and transport, as well as counterterrorism, poverty alleviation and antinuclear proliferation and interfaith dialogue.

Meeting at the Russian Foreign Ministry’s historic Spiridonevsky House, Romulo and Lavrov had a frank exchange over various issues concerning bilateral relations, which would mark its 30th anniversary next year, but also in the regional and international spheres. Romulo invited Lavrov to visit the Philippines and passed on an invitation by President Gloria Macapagal-Arroyo to President Vladimir V. Putin to visit next year.

One of the issues topping the agenda was energy cooperation. Together with delegation member Mr Eduardo V. Mañalac, President and CEO of the Philippine National Oil Company (PNOC), Romulo emphasized during the meeting that the Philippines and Russia complement each other’s needs and objectives.

“For the Philippines to sustain its economic development, it must ensure a reliable supply of its energy needs. On the other hand, Russia will continue its role as one of the world’s oil and gas reserves’ center,” Romulo said.

The two ministers may also express support for the speedy conclusion of bilateral negotiations for Russia's accession to the World Trade Organization (WTO), in time for the 6th Ministerial Conference in Hong Kong in December 2005. Philippine-Russian trade talks are now at the final stages in Geneva over market access, tariff rates and reciprocal treatment of goods.

“I do not see any reason why the Russian Federation should not accede to the WTO” by the end of the year, Romulo said. Russia is conducting talks with 13 countries, whose agreement will pave the way for Russia’s joining by the end of the year. Apart from the Philippines, these countries include the United States, Australia and Brazil.

As for regional issues, Romulo supported fully Russia’s participation in the East Asia Summit in Kuala Lumpur in December 2005. Barring that, he said the Philippines would openly welcome Russia at the next Summit, projected to be held in the central Philippine island of Cebu next year, when the Philippines takes over the rotating chairmanship of the Association of Southeast Asian Nations (ASEAN) next year.

The Philippines, an ASEAN founding member, takes over next year from Singapore the role of coordinator in the group’s dealings with Russia. The term of coordinator lasts for three years. ASEAN maintains dialogue partnerships with a number of countries and each ASEAN member is tasked to coordinate relations with specific partners on a rotating basis.

As incoming ASEAN country coordinator for Russia, the Philippines under Romulo’s chairmanship will lead efforts to mark the 10-member grouping’s 13-year old dialogue partnership by further strengthening relations, activities and cooperation between ASEAN and Russia.

Romulo expressed sympathy for the victims of simultaneous terrorist attacks in Nalchik, the capital of Kabardino-Balkaria Republic, situated in Russia's south near Chechnya. The two ministers agreed to speed up the conclusion of their bilateral agreement on fighting transnational crime, including cooperation on counter terrorism.  The two ministers also agreed on the importance of interfaith dialogue in promoting peace, understanding and tolerance.

The two sides also found common ground in the aim to alleviate poverty consistent with the Millennium Development Goals, which the Philippines is pushing through a debt conversion initiative in the education, cultural and science and technology sectors, and which Russia is seeking through economic cooperation package agreements regionally in ASEAN and bilaterally with the Philippines in exactly the same sectors.

On a bilateral level, they reached an agreement to undertake joint events to mark next year’s anniversary with projects and activities that will contribute to stronger and closer ties between the two countries. The Philippines and the Soviet Union established diplomatic relations in June 1976.

With both countries experiencing economic growth and Russia increasingly turning to Asia for trade and investment, the opportunities for bilateral exchanges are ripe in the fields of trade, energy, tourism and culture. Possible trade opportunities for the Philippines include construction materials, furniture and furnishings, food products and electronics. Tourist arrival figures are experiencing record growth for both countries in 2005.

In 2003, annual bilateral trade stood at more than 350 million US dollars, the second in volume after Thailand. However, Russia enjoys an overwhelming surplus. END