PHILIPPINES-RUSSIA

BILATERAL RELATIONS

I. BACKGROUND OF RUSSIA

Russian Federation

Fig. 1. Flag and Emblem of Russia

Formerly the Russian Soviet Federative Socialist Republic (RSFSR), a republic

of the Union of Soviet Socialist Republics (USSR), Russia became the Russian
Federation following the dissolution of the Soviet Union in December 1991. After
the Soviet era, the area, population, and industrial production of the Soviet
Union (then one of the world's two Cold War superpowers, the other being
the United States) that were located in Russia passed on to the Russian
Federation.
The Russian Federation emerged as a great power in the early twenty-first
century, also considered to be an energy superpower. The country is considered
the Soviet Union's successor state in diplomatic matters and is a permanent
member of the United Nations Security Council.1
The country, which is commonly known as Russia, is located partly in Eastern
Europe and partly in northern Asia, bordering the Arctic Ocean in the
North. Russia is bordered by 14 countries.
Furthermore, it shares maritime borders with Japan, Sweden, Turkey and
the United States. With an area of 17,098,242 km, it is the largest country in
the world, covering more than 11% of Earth's land areas.

Fig. 2. Map of Russia

 But vast regions of the country were uninhabited or uninhabitable. Russia is a
country with a very low population density of 8.5 people/km. But still, Russia has
the world's ninth-largest population with a population of 146 million people in
2016, according to World Bank.
Moscow is the capital and core of political power and the center of culture,
and trade, St. Petersburg is Russia's second largest city and an important
Russian port on the Baltic Sea. Its official currency is Russian Ruble ( ).2
In terms of political system, Russia is a federal republic and in theory a multi-
party representative democracy, wherein the President is the head of state and
the Prime Minister is the head of government. The President is also the Supreme
Commander-in-Chief of the Armed Forces of the Russian Federation. Russia's
legislature is the bi-cameral Federal Assembly of Russia (parliament), which
consists of the State Duma (lower house), and the Federation Council (upper
house), headed by the Chairman of the Federation Council (speaker). 3

Fig. 3. Federation Council Fig. 4. State Duma

The current president of Russia is Vladimir Putin, holding the office since
May 07, 2012. He was Prime Minister from 1999 to 2000, President from 2000 to
2008, and again Prime Minister from 2008 to 2012. The Russian Ministry of
Foreign Affairs is government institution in charge the foreign policy and foreign
relations of Russia.4

Fig. 5. Russian President Vladimir Putin

II. OVERVIEW OF PHILIPPINES RUSSIAN FEDERATION RELATIONS

The history of the Philippine diplomatic mission in Moscow can be divided

into two distinct periods: relations with the Union of Soviet Socialist Republics
(USSR) from 1976 to 1991 and relations with the Russian Federation and the
Soviet successor states from 1992 up to the present.

Fig. 6. The USSR Fig. 7. The Russian Federation

As early as 19th century the rulers of Russia got interested in developing ties
with the Southeast Asia countries. This interest was stemming from the necessity
to ensure food and raw materials supply to the new territories of the Russian
Empire in the Far East as communication between these remote areas and
European part of the country was extremely difficult.
Irish born american, Peter Dobell, was the first businessman living in
Southeast Asia who tried to promote relations with the Russian Far East,
particularly Kamchatka Peninsula region.
In 1813 Emperor Alexander the 1st endorsed Dobells plan on trade and
development with Southeast Asia countries.
In 1817 the Russian Government took a decision to establish a Russian
Consulate General in Manila - the first Russian diplomatic mission in the region.
Peter Dobell naturalized in Russia as Petr Vasilievich Dobel and has been
appointed as the Consul General in the Philippines. 5

Fig. 8. Peter Dobell Fig. 9. Tsar Alexander I

Launching an official Russian mission in Philippines was not an easy task as

Spaniard colonial officials declined to recognize Russian diplomatic
representation in Manila. However a compromise has been found and Peter
Dobel has been allowed to stay and act in Manila as an unofficial representative
of the Russian government in the Philippine islands.
 The Russian consular mission has started to work at the end of the 19th
century. But its activity was carried out mostly by merchants from France, the so-
called freelance consuls, rather than Russians. This status of relation continued
till 1917.6

After the
October
Revolution
contacts between
Soviet Russia
and the
Philippines were
maintained
through
Komintern, Prof-
Intern (Red
Labor Unions)
and the Communist party of the USA (Philippines
were then the colony of the USA). In 1928 the
Congress of the Philippines workers (Congreso
Obrero de Filipinas) joined Prof-Intern which is an
international body established by the Communist
International with the aim of coordinating
Communist activities within trade unions.7

Fig. 10. Logo of Prof-Intern

In 1920s and 1930s militants from Philippine labor unions had underwent
training in the USSR and participated in the international events of the global
communist movement. For example, they took part in the 7th Congress of
Komintern in 1935 as observers and attended other international conferences of
the world labor union movement. Many of them joined the Communist party of
the Philippines established in 1930. When this party had been outlawed some
leaders remained prominent members of the leftist movement in the country. Due
to restrictive policy of the Philippine colonial government contacts between
communists of the Soviet Union and the Philippines gradually waned.

After gaining independence in 1946, the Philippines continued abstained

policy and ignored diplomatic relations with socialist countries. In 1965 President
Ferdinand Marcos opted a policy of balancing interaction with different countries
including socialist ones aimed at opening up new markets for Philippines export.

In 1960's and 1970's the Philippines and

the USSR exchanged delegations of
parliament members, businessmen and non-
governmental organizations. In 1972
Philippines USSR Friendship Society was
created.
To jump-start trade between two countries
a Philippine Foreign Trade Company was
established in July 21, 1973 through
Presidential Decree (PD) 252 to pioneer in
establishing Philippine trade with the Socialist
and Other Centrally Planned Economy
Countries (SOCPEC).8 Fig. 11. PITC Logo
 Also, In 1974 the Agreement on Cultural Cooperation between the
Philippines and the USSR was signed.Finally, the Philippines and the USSR
agreed to formally establish diplomatic relations during the state visit to the
USSR of President and Mrs. Ferdinand E. Marcos from 21 May to 7 June 1976.

On 2 June 1976, the Joint

Communiqu on the Establishment of
Diplomatic Relations between the
Philippines and the Union of Soviet
Socialist Republics was signed by
President Marcos and Mr. Nikolay V.
Podgorny, then President of the
Presidium of the USSR Supreme Soviet.

Following the dissolution of the

USSR in December 1991, the
responsibilities and obligations of the
Soviet Union arising from bilateral
Philippines-USSR agreements were
taken over by the Russian Federation.9
Fig. 12. Former President Marcos in Russia
The Philippines and the Russian Federation have since enjoyed cordial and
expanding relations. Philippines-Russia engagement has increased markedly
with high-level exchanges of visits and meetings conducted in the past few years,
notably the meeting of Philippine President Rodrigo Roa Duterte with Russian
President Vladimir Putin at the sidelines of the APEC Economic Leaders Meeting
in Lima, Peru on 19 November 2016; and President Dutertes meeting with
Russian Prime Minister Dmitry Medvedev at the sidelines of the ASEAN Summit
in Vientiane, Lao PDR on 08 September 2016. 10
Also, Philippine President Dutertes truncated visit to Russia in May 2017 is
seen as part of an attempt by his administration to pursue a more balanced
foreign policy by re-orienting the countrys foreign relations away from the US
and strengthening ties with other major powers.
President Duterte is particularly keen to develop defense cooperation with
Russia, though the generally pro-US Philippine national security establishment
remains more cautious. Philippine-Russia military exercises and Russian arms
transfers to the Philippines is also taken into consideration.11

Fig. 13. Philippine President Rodrigo Duterte and Russian President Vladimir Putin
 During President Dutertes first meeting with President Putin, both leaders
agreed to enhance bilateral relations and cooperation in defense, economic and
socio-cultural areas. An invitation to visit Russia was conveyed by President
Putin to President Duterte.

Fig. 14. President Duterte President with Prime Minister Medvedev

During President Dutertes meeting with Prime Minister Medvedev, the two
discussed a wide range of bilateral issues as well as ways which the Philippines
and Russia can enhance bilateral relations, particularly in trade and investments,
cooperation in combating illegal drugs, and cultural and educational cooperation,
among others.12
Recent high-level visits to Manila include the visit of Prime Minister Dmitry
Medvedev on 18-20 November 2015 for the APEC Leaders Meeting; Secretary
of Security Council Nikolay P. Patrushev on 15-17 February 2017; and Deputy
Minister for Economic Development Alexander V. Tsybulskiy, as RF Chair for the
PH-RF JCTEC) on 26 January 2017.

Meanwhile, the most recent high-level visit of Philippine officials to Moscow is

that of Foreign Affairs Secretary Perfecto R. Yasay and Defense Secretary Delfin
N. Lorenzana on 3-6 December 2016. Secretary Yasay called on Foreign
Minister Sergey Lavrov, while Secretary Lorenzana called on Deputy Defense
Minister Anatoly Antonov and Director Alexander Fomin of the Federation Service
for Military Technical Cooperation.13

The Philippines and Russia also

engage in cordial and active inter-
parliamentary relations. Federation
Council Chairperson Valentina
Matviyenko visited Manila on 10
November 2014. In reciprocation,
Senate Pres. Franklin Drilon visited
Moscow on 18-23 October 2015,
wherein he and Chair Matviyenko
signed the Agreement on
Cooperation Between the Council of
the Federation of the Federal
Assembly of the Russian Federation
and the Senate of the Congress of
the Republic of the Philippines on 20
October 2015.14
 Fig. 15. Senate President Drilon in Russia

Fig. 16. Carlos D. Sorreta Fig. 17. Igor A. Khovaev

The Philippine Ambassador to the Russian Federation is H.E. Carlos D.

Sorreta. The Philippines has Honorary Consulates in Vladivostok and in St.
Petersburg. While the Russian Federation has a resident diplomatic mission in
the Philippines. The Ambassador is H.E. Igor A. Khovaev, who presented his
credentials to President Benigno S. Aquino III. Russia has an honorary consulate
in Cebu City.

Fig. 18. Russian Embassy & Philippine Embassy

The Embassy of the Republic of the Philippines in Moscow is the principal

representative of the Philippine Government in the conduct of its relations with
the Government of the Russian Federation and the countries under the
jurisdiction of the Embassy and in advancing and promoting Philippine interests.
It promotes the foreign policy thrusts and directives of the Philippines, including,
among others, the following:

1. Enhancement of closer and mutually beneficial bilateral relations with the

Russian Federation and other countries under the Embassys jurisdiction;

2. Enhancement of national security, promotion of territorial integrity and

protection of national sovereignty;

3. Promotion of economic diplomacy to sustain and support national

development;

4. Promotion of greater understanding of Philippine culture for mutually

beneficial ties with other countries;

5. Projection of a positive image of the Philippines;

 6. Promotion and protection of the rights and welfare of Filipinos overseas

Russia also has an embassy in Manila specifically in Makati City. The

Russian embassy is one of 181 foreign representations in the Philippines, and
one of 137 foreign representations in Manila. 15

ECONOMIC TIES: PH-RF JOINT COMMISSION ON TRADE AND ECONOMIC

COOPERATION (JCTEC)

The Philippines and Russia held discussions to forge closer economic

cooperation and strengthen two-way bilateral trade and investment relations.
Deputy Minister of Economic Development of the Russian Federation Mr.
Alexander V. Tsybulskiy met with Undersecretary Ceferino S. Rodolfo from the
Department of Trade and Industry (DTI) in Manila during the Co-Chairs Meeting
of the PhilippinesRussia Joint Commission on Trade and Economic Cooperation
(JCTEC) on Thursday, 26 January 2017. The Co-Chairs meeting discussed
various areas of cooperationincluding trade and investments, agriculture,
industry, energy, manufacturing, infrastructure, transport, tourism, science and
nuclear technology, labor and higher educationthat will be tabled during the
inaugural session of the recently created JCTEC. The inaugural session is
scheduled to convene in the first half of 2017 in Manila in preparation for the visit
of President Rodrigo Duterte to Russia.16

Fig 19. During the Co-Chairs Meeting of

the PhilippinesRussia JCTEC

The JCTEC is the primary bilateral mechanism for both sides to discuss ways
to enhance trade, investments and economic cooperation. It was established in
18 November 2015 under the Agreement signed during bilateral talks on the
sidelines of the 23rd APEC Economic Leaders Meeting in Manila.

The Co-Chairs Meeting was held following the executive ratification of the
Agreement by President Rodrigo Duterte and mutual high level policy
pronouncements on deepening bilateral engagement. To improve current
bilateral trade relations, the Philippines is set to maximize opportunities in the
Russian market as it becomes more globally integrated. The convening of the 1 st
Philippine-Russia JCTEC will be an ideal opportunity to initiate deepening of
bilateral economic ties.17
TRADE RELATIONS: PHILIPPINES-RUSSIA BILATERAL TRADE

Fig. 20. JCTEC Meeting

 In 2015, Russia was the Philippines 31 st trading partner, 44th export market,
and 27th import supplier.18

TOURISM SECTOR: TOURIST ARRIVALS FROM RUSSIA

PRESENT :)

In terms of tourist arrivals, visitors from Russia slightly recovered in 2016

after registering declines in 2014 and 2015.
Arrivals peaked in 2013 but that [segment] has not been performing better
since then noting that Russians share in total tourist arrivals in the Philippines
was only 0.47 percent in 2016, providing a vast room for improvement. 19

ON SECURITY COOPERATION

The Duterte Administration sees that a renewed ties Russia would provide a
healthy opportunity to appreciate and understand these two countries. They
envision that an enhanced relations with Russia will bolster our international
relations and give us more room to grow, expand, and become more rooted as
we get to know ourselves better as a nation in a community of nations. 20
However, Russia have been very clear on the notion that there will be no
Philippines-Russia security alliance to happen at the moment. The Philippines
may be acquiring weapons from Russia, but the two countries will not forge a
strategic security alliance and will only focus on boosting economic ties. 21
President Duterte, in Russia for a four-day official visit, has announced plans
of acquiring precision-guided bombs to strengthen efforts against rebels and
Islamic State-inspired terrorist groups. He said Russia is ready to provide the
 country all the defense equipment it needs. But Sorreta clarified that the
acquisition of weapons from Russia is different from forging a strategic defense
alliance. He said Russia sells firearms without conditions unlike the US, which
he said provided the Philippine armaments that are loaded with
conditionalities.22

In addition, a media release said Lorenzana had his first bilateral meeting
with Russian Defense Minister Sergey Shoygu last April 26 at the sidelines of the
Moscow Conference on International Security.

Lorenzana said that the Department of

National Defense is ready to finalize a
framework agreement with the Russian
Federations Minisitry of Defense. The
Philippines looks forward to enhanced
security and defense engagement in terms
of training, exchange of information and
expertise, and port calls, among others,
according to the Depatment of Foreign
Affairs.23

Fig. 20. Defense Sec. Lorenzana & Defense Minister Shoygu

NON-INTERFERENCE

Russia follows a policy of non-interference especially with Dutertes drug

war, unlike US and the European Union and that Russia is seeking to expand
economic ties with Asia but not meddle in the internal affairs of other nations.

They basically respect a countrys

decision on what to do. For
example, human rights is a big
issue for Western countries, and
Philippine ambassadors have
been summoned and given the
views of the host country. Russia,
on the other hand, believes
that sovereign states are capable
of making decisions for
themselves and would benefit or
suffer by those decisions.
Fig 21. Non-Interference

Russia has not taken sides on the South China Sea dispute, which involves
its ally China, Taiwan and Southeast Asian countries the Philippines, Malaysia,
Vietnam and Brunei. While western countries are accusing him of being a killer
and human rights violator, Duterte is greatly admired by Russians for his strong
leadership.24

ON EDUCATION TIES: None yet

There is no existing bilateral agreement between Philippines and Russia on
the aspect of education.

ON INVESTMENT DEALS: The $875 million amount of investments

President Dutertes abbreviated trip in Moscow, Russia produced business
deals to nearly $1 billion, which may be considered small compared with China
and other countries he had earlier visited but already a record-breaking economic
accomplishment in Manilas 41-year-old diplomatic ties with Russia.

The Trade Secretary, Ramon Lopez,

who led nearly 200 Filipino businessmen, to
break business and investment deals with
their Russian counterpart disclosed that so
far, $875 million worth of trade have been
agreed upon by Filipino and Russian firms.25
Fig. 22. Trade Secretary of the
Philippines
However, the estimated investments for the business deals already accounts
to four times the total P220 million bilateral trade between the two nations in
2016. So far, there is around $875 million business to business projects between
Philippine and Russian companies.

During the Philippines-Russia

Business Forum last May 25, 2017 at the
Four Seasons hotel, Trade Secretary
Lopez led a huge Philippine delegation of
businessmen. Aside from that, Filipino
traders, state economic and trade
officials held another business forum in
St. Petersburg where another huge
delegation of Russian investors attended.
Lopez invited Russian businessmen to
take advantage of the Philippines vastly
improving economy by investing in the
areas of iron and steel, transport,
agribusiness, multi-purpose vehicles,
power, energy, transport and construction. Fig. 23. The Phil-Russia Business Forum
Secretary Lopez was among the handful Cabinet officials left in Moscow by
Duterte who had to rush back home to personally attend to the Marawi crisis that
prompted him to declare martial law in the entire Mindanao. He said that
business deals were formally sealed among private and government institutions
such as the Department of Trade and Industrys Philippine International Trading
Corp, the Bureau of Investments and industry associations like the Philippine
Chamber of Commerce and Industry and the Roscongress Foundation and
CCRIF of Russia.
At least 200 business delegates from the Philippines met with their Russian
counterparts, who represented about 90 Russian companies and immediately
discussed business. According to Lopez, the business event here seeks to pave
the way for more Russian companies to invest in the Philippines and for Filipino
businessmen to be able to bag lucrative deals from Russia, known for their steel,
oil and gas, infrastructure and arms industries.26

LATEST AGREEMENTS SIGNED: TEN AGREEMENTS

Russia and the Philippines have entered into 10 key bilateral agreements,
including the defense cooperation deal, in a bid to invigorate both countries' ties.
The signing of agreements between the two countries pushed through in Moscow
even sans the presence of President Rodrigo Duterte. Duterte, who had to cut
short his Russia trip and return to Manila due to reported clashes between
government forces and Maute group, was instead represented by Foreign Affairs
Secretary Alan Peter Cayetano. The agreements will help boost economy and
achieve peace and security in the Philippines. The signing of these 10
 agreements manifests the interest and desire of both the Philippines and Russia
to pursue a wide range of cooperation.27

(1) DEFENSE

A defense cooperation agreement was

signed by the Department of National
Defense and Russia's Ministry of
Defense to expand exchanges in terms
of training, seminars and best practices
between the two countries.
(2) SECURITY

Also signed was a memorandum of

understanding (MOU) between the
National Security Council Secretariat
and Russia's Security Council in the
field of security.

(3) TRADE AND INDUSTRY

The Department of Trade and

Industry and Russia's Ministry of
Economic Development inked a
memorandum of intent to foster
mutually beneficial trade and
investment cooperation between the
two countries.

(4) AGRICULTURE

On the field of agriculture, an MOU was

signed to bring about food security in
the Philippines through cooperation
and research in agriculture and
fisheries; livestock breeding;
processing, transportation and storage
of agriculture and fishery products.

(5) TOURISM

The Department of Tourism and

Russia's Ministry of Tourism signed an
MOU and a joint action program for
the period of 2017 to 2019 to promote
tourism and exchange of best
practices between the two countries.

(6) INDUSTRY DEVELOPMENT

 Also signed was an MOU on
cooperation in industry development
related to the products and
technologies intended to strengthen
the industries of both countries.

(7) TRANSPORTATION COOPERATION

An agreement on transportation
cooperation was signed to exchange
technology and best practices in
transportation, with Russia rendering
support and technical assistance in
transport area, and cooperation in the
framework of research projects.
(8) CULTURE & ARTS

The National Commission for Culture

and the Arts and Russia's Ministry of
Culture signed a protocol on
cooperation to promote participation
in international film and art festivals in
both countries; and exchange of
music, circus, dance and theater
groups or individual artist.

(9) NUCLEAR ENERGY

The two countries also signed a deal

that seeks cooperation on the use of
nuclear energy for peaceful
purposes.

(10) CONSULTATIONS

The Department of Foreign Affairs

and Russian Ministry of Foreign
Affairs also inked plan of
consultations starting this year until
2019.

BENEFITS GAINED FROM THE BILATERAL RELATIONS OF THE

PHILIPPINES AND RUSSIA

I. PHILIPPINES benefits from its Relations with Russia

Russia have resources, technologies and expertise that can have

transformative impact on the Philippine economy and society,
 particularly in the fields of energy, mining, infrastructure, industry and
education.

According to 2016 International Energy Agency Statistics, Russia is the

worlds largest net exporter of natural gas and Russian energy
companies Gazprom, Rosneft and Lukoil ranked as the worlds largest,
second largest and 9th largest public oil and gas companies respectively.
Thus, the Philippines might be able to get its oil resources from
Russia in a much cheaper price.

With its technology, experience and financing, Russian participation

in the Philippines energy exploration, development and
infrastructure can contribute to the countrys energy security. As
most of these companies are state-owned or with a significant
government stake, improved political relations can surely help facilitate
better commercial ties between them and their Philippine counterparts
(e.g. PNOC, private Philippine energy companies).

As the closest Southeast Asian state to the Russian Far East, the
Philippines can also position itself as a potential hub for the
distribution of Russian energy in the region, an aspiration aired by
the former Arroyo government.

Russia also represents enormous market potentials for Philippine

agricultural exports and tourism. Figures from the International Trade
Centre reveal that Russia is the worlds 4th largest importers of bananas
respectively. The country already supplies about 95% of the Asian market
and entering a new market in Russia will tremendously benefit local
banana growers. The prospects for other top agricultural exports like
pineapples, mangoes and seafoods also look bright.

Russian investments can also be tapped to enhance processing

and packaging of Filipino products to comply with host quarantine
requirements. Russia is also the 6th largest outbound tourist market.

Russia can serve as investors in Philippine infrastructure, industry

and agriculture, as well as provide tremendous markets for major
Philippine exports. Financing and cooperation in knowledge, skills and
technology sharing can also help the country move up the value chain
eventually graduating from exporting low-value raw materials into
processed intermediate or even final goods.28

II. RUSSIA benefits from its Relations with the Philippines

It's easy to see how stronger ties with the superpower that is Russia would
benefit the Philippines. But what does Russia stand to gain from warmer relations
with a small developing country? Philippine Ambassador to Russia Carlos
Sorreta explained how the Philippines' pivot to Russia dovetails with Russia's
"Turn to the East" policy.
Improving relations with the Philippines is yet another manifestation of this
"Turn to the East" policy. Of all the Southeast Asian countries, the Philippines is
the lowest in terms of relations with Russia. If they are able to improve that, it
becomes a metric that the 'Turn [to the] East' policy is succeeding.29
The Philippines also holds a critical role this year as chairman of
the Association of Southeast Asian Nations (ASEAN), the regional bloc growing
the fastest in Asia.The focus on improving economic ties is best proven by the
large business contingent that accompanied Duterte to Russia.
 The contingent is composed of 260 businessmen interested in doing
business with Russian companies or attracting Russian investment. In terms of
size, this delegation comes second only to the business delegation to China
which numbered around 400 businessmen.
The delegation members to Russia represent companies from a variety of
industries including agriculture, tourism, and energy, according to Trade
Undersecretary Rowel Barba. Big names in business are represented, including
Manuel Pangilinan's MVP Group of Companies and Michael Tan's LT Group of
Companies. Economic ties with the Philippines and ASEAN in general give
Russian companies access to a large market. Aside from that, the following
are the benefits Russia is to gain from its relations with the Philippines.

Russian policymakers have recently begun to view the Philippines as a

linchpin in their strategy to economically engage the ASEAN bloc. This
change in perspective has been triggered by the Philippines economic
vibrancy in recent years. In 2016, the Philippine economy grew by 6.7
percent, the fastest rate of growth in Southeast Asia.

Even though trade negotiations between Russian and Philippine

diplomats have encompassed a wide range of industries, Russian
investors have highlighted the Philippines agriculture sector as a
particularly lucrative area of cooperation. During the November 2016
APEC leaders meeting in Lima, Russia agreed to increase its imports of
Philippine agricultural products from $46 million to $2.5 billion per year.

Philippine Trade Secretary Ramon Lopez announced that this trade

expansion would be achieved through a massive increase in Russias
purchases of Philippine bananas and mangoes. Philippine officials hope
that Moscows purchases of Philippine fruits will be matched by Russias
increased willingness to export non-GMO meat products, which are in
short supply in the Philippines.

These lucrative trade linkages have caused some Russian analysts to

argue that the Philippines could be the key in Moscows ambition to forge
a free trade agreement between the Eurasian Economic Union (EEU)
and the ASEAN bloc.

In May 2016, Philippine Ambassador to Russia Carlos Sorreta responded

positively to Russias calls for tighter EEU-ASEAN economic links. As
Vietnam, Thailand, and Cambodia have also strengthened their
relationships with Russia in recent years, Filipino support for an EEU-
ASEAN trade pact could greatly bolster Moscows bargaining power over
more reluctant Southeast Asian leaders.

Why is Russia so keen on the Philippines?

Since Duterte assumed office, Russia has responded enthusiastically to his

overtures for three reasons.30

1. First, by strengthening relations with the Philippines, the Kremlin can

argue that its turn to the east policy is delivering positive and substantive
results, and that Russia has not become dependent on China. Putin introduced
his Asia pivot in 2012 to reduce the countrys economic exposure to the West
and to bolster trade ties with Asias fast-growing economy. The policy was
given added impetus in 2014 when falling oil prices (Russias principal export)
and Western-imposed sanctions in the wake of Russias annexation of Crimea
ravaged the Russian economy. However, detractors have criticized the policy
 as being too China-centric with not enough attention being given to Southest
Asia and ASEAN-led forums such as the EAS (which Putin has failed to attend
since Russia was admitted in 2011). President Dutertes visit to Russia
provided the Kremlin with a riposte to those critics who have accused it of
neglecting Southeast Asia.

2. The second reason is transactional, particularly arms sales. Russia is

the second largest arms exporter after the US, and Southeast Asia is an
important market due to rising national defence budgets. Between 2010 and
2016, Russia sold US$6.31 billion worth of military equipmentincluding
submarines, frigates, fighter aircraft and helicoptersto Southeast Asia
representing 13.2 per cent of its total global arms sales.18 Its three biggest
customers were Vietnam (US$4.9 billion), Indonesia (US$675 million) and
Myanmar (US$663 million), and it also made defence sales to Thailand,
Malaysia and Laos. Because of the Philippines longstanding alliance with the
US, however, Russian defence companies have found it almost impossible to
enter the Philippine market. This situation looks set to change under Duterte,
though Russian arms sales will likely be modest given the countrys small
defence budget and the problem of interoperability, as well as opposition from
the AFP which prefers US-supplied equipment.

3. Third, President Putin opposes US primacy and, like China with which it
has forged a close strategic partnership, seeks to undermine Americas system
of global alliances and partnerships. For both Moscow and Beijing, the Duterte
administrations recalibration of the countrys foreign policy provides a window
of opportunity to develop military-to military ties with the Philippines, thereby
weakening the US-Philippine alliance.

CHALLENGES IN THE RELATIONS OF THE PHILIPPINES AND RUSSIA

Probably, the main challenge that the Philippines and Russian relations will
have is the continuing presence of americans in the Philippines, and its
influences in the Philippine culture. No matter how Philippines and Russia try to
disregard it, historically, America remains, and is likely to remain, as the
Philippines primary partner in terms of security and other matters. And our ties
with US will never be disconnected - it may at least be weakened, but it will exist
as it is.

CONCLUSION:

Although President Rodrigo Dutertes trip to Moscow was cut short due to an
outbreak of violence in Mindanao, for two reasons his official visit to Russia on
22-24 May 2017 can be considered a qualified success for both countries. First,
by travelling to Russia, Duterte was able to demonstrate his seriousness about
enhancing relations with so-called nontraditional partners, a key element of his
pledge to pursue an independent foreign policy that reduces the countrys
perceived dependence on the US.

For Russia, Dutertes visit was a public relations success because it helps
strengthen the Kremlins narrative that the countrys turn to the east is real,
substantive and not just about China. Second, the two countries signed a series
of agreements aimed at broadening and deepening bilateral relations which have
always been rather tenuous. However, while both sides recognize the
potentialities, it will take considerable time and effort before the Philippines and
Russia become serious trade and security partner. Dutertes Moscow trip helped
both the Philippines and Russia advance their respective foreign policy goals, at
least symbolically.

President Duterte on Russia:

Russia is a country that we must work with. There are
opportunities for cooperation that cannot be ignored. With its
geographic footprint in the Asia-Pacific region and strategic
interests in the region, a positive engagement is required to
find areas of synergies and interests.

- The END -

Record of Concluded Bilateral Agreements between Philippines and Russia

1. Memorandum of Understanding between the Academy of Labour and Social

Relations (ALSR) and the University of San Carlos (4 May 2009)

2. Memorandum of Understanding on the Air Services Agreement (ASA)

Between the Government of the Republic of the Philippines and the
Government of the Russian Federation Exchange of views and agreed ad
referendum on the ASA (11 December 2008) Note: The ASA is ready for
signing.

3. Agreement on Cooperation Between the Council of Federation of the Federal

Assembly of the Russian Federation and the Senate of the Congress of the
Republic of the Philippines (20 October 2008)

4. Sister City Agreement between Cebu City and Vladimir (24 September-1
October 2008)

5. Agency Agreement between the Russian JSC Arctic Trade and Transport
Company (ATTK) and the Philippine Aerospace Development Corporation
(PADC) for the Supply of Aircrafts BE-103 (11 September 2008)

6. Cooperation Agreement between the Russian Irkut Corporation and the

Philippine Aerospace Development Corporation (PADC) (10 September
2008)

7. Proprietary Information Agreement between the Russian Irkut Corporation

and the Philippine Aerospace Development Corporation (PADC) (10
September 2008)

8. Cooperation Agreement between the Philippine Chamber of Commerce and

Industry and the Chamber of Commerce and Industry of the Russian
Federation (25 January 2008)

9. Agreement between the Government of the Republic of the Philippines and

the Government of the Russian Federation on the Condition of Mutual Visits
of the Holders of Diplomatic and Service (Official) Passports (August 2007)
10. Agreement between the Philippine Drug Enforcement Agency and the
Federal Service of the Russian Federation for Narcotics Traffic Control on
Cooperation in Combating Illicit Traffic on Narcotics Drugs, Psychotropic
Substances and their Precursors (August 2007)

11. Program of Cultural and Educational Cooperation 2006-2008 (May 2006)

12. Agreement on Tourism Cooperation (14 March 2006)

13. Memorandum of Understanding between DFA and Russian MFA on Issues

Relating to Cooperation on the Training of Diplomatic Personnel (29 July
1998)

14. Programme on Cultural Cooperation (29 July 1998)

15. Cultural Cooperation Agreement (12 September 1997)

16. Agreement on the Promotion and Reciprocal Protection of Investments (12

September 1997)

17. Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with Respect to Taxes on Income and Capital (20 July 1995)

18. Air Transport Agreement (20 July 1992)

19. Commercial Air Services Agreement between PAL and Aeroflot

20. Agreement on Cooperation in the Field of Science and Technology (08
July 1982)

20. Agreement on the Issuance of Multiple Visas on the Basis of Reciprocity to

Embassy Officials and their Family Members (22 October 1979)

21. Agreement on Trade Cooperation (02 June 1976)

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Biography: Vladimir Putin. Retrieved from:
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When an Irishman became Russias first envoy to the Philippines.
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-first-envoy-to-the-philippines_655609
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No Philippines-Russia security alliance, but closer economic ties.
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