Foreign Affairs Secretary Alberto Romulo said that the Philippines is considering Russia as one of its sources of oil in the future, and is eyeing a deal that would put the Philippines in a role as an oil hub for Russian oil exports to Asia.
Romulo and Philippine National Oil Co. (PNOC) president Eduardo Mańalac arrived in Manila during the weekend, following a three-day working visit to the Russian Federation last week which focused on energy cooperation. Romulo also inaugurated the Philippine consulate in St. Petersburg in Western Russia.
He said the Philippines’ proposals on oil cooperation with Russia were warmly welcomed by Russian officials, led by Russian Foreign Minister Sergey Lavrov, as well as Russian oil and gas executives.
The DFA reported that the Russian Ministry of Industry and Energy has agreed to send before the end of the year a delegation to Manila that would further study the Philippines’ proposals on energy cooperation.
"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, noting that the Philippines’ proposals on oil cooperation with Russia will be beneficial to both countries.
Meanwhile, the Philippines is also eyeing increased trade with Russia, particularly increasing Philippine exports like construction materials, furniture and furnishings, food products and electronics, as Russia prepares for its accession to the World Trade Organization (WTO).
The Philippines and Russia are now in the final stages of trade negotiations in Geneva over the issues of market access, tariff rates and reciprocal treatment of goods.
Russia is conducting negotiations with 12 other countries, including the United States, Australia and Brazil, the agreement of which would pave the way for Russia’s accession to the WTO in time for the WTO’s 6th Ministerial Conference in Hong Kong in December.
"I do not see any reason why the Russian Federation should not accede to the WTO by the end of the year," Romulo said.
As of 2003, the Philippines is Russia’s second biggest trade partner in Asia with bilateral trade amounting to over $350 million, although Russia had been enjoying an overwhelming trade surplus.
Romulo said that the Philippines would be in a good position to strengthen its ties with Russia as the Philippines will assume next year the position as coordinator of the Association of Southeast Asian Nations (ASEAN) in charge with the affairs of the ASEAN with Russia.
The Philippines will take over from Singapore and will hold on to the post as ASEAN coordinator for Russia for the next three years.
Romulo also relayed President Arroyo’s invitation to Russian President Vladimir Putin to visit the Philippines next year. Romulo’s visit to Russia is the first of a top Philippine official since former President Fidel Ramos visited the country in 1997. (David Cagahastian)
