SBMA GUNS FOR RUSSIAN INVESTMENTS IN SUBIC

SUBIC BAY FREEPORT — Eyeing a part of the projected $2 billion bilateral trade between Russia and the Philippines, the Subic Bay Metropolitan Authority (SBMA) said it has linked up with the Philippines-Russia Business Council (PRBC) to explore business opportunities with members of the Russian Federation.

SBMA Administrator Armand Arreza said the SBMA is interested establishing links with Russian investors in the fields of logistics, shipbuilding, port operations, manufacturing, information and communications technology, and tourism.

Arreza said the SBMA has joined the PRBC as a corporate member even before a Russian trade delegation visited Malacañang to express interest in investing in the country.

The delegation, headed by Deputy Chairman of the Federation Council Mikhail Nikolaev, said Russia will expand its investments in the Philippines from the current $200 million to at least $2 billion.

“This is a huge opportunity for us, especially since Russia wanted the Philippines to coordinate its trade relations with members of the ASEAN (Association of Southeast Asian Nations),” Arreza said on Wednesday.

“As a commercial port that lies dead center in the Asian region, Subic is in a position to corner much of the action in both trade and tourism,” he said.

The potential for Subic to play a major role in the development of Russian trade with the ASEAN lies in its strategic location in the region, echoed PRBC chairman Roberto de Venecia, who invited the SBMA to join the council in July.

De Venecia said the council is offering the Subic Bay Freeport “for possible Russian trading in the eastern and far eastern Asian region.”

Subic’s tourism industry could also benefit from an upswing in the trade relations between the Philippines and Russia, he added.

De Venecia also pointed out that Russia’s yet “untouched” market offers enormous opportunities for the Philippines, especially since both countries are located in the Asian continent.

“Russia is emerging as a big oil source, and it is currently the second in the world in terms of oil production. Aside from this, Russia is gearing towards the development of the huge untapped resources in Siberia, which has a land area as big as Canada,” he said.

De Venecia said SBMA’s membership in the PRBC is expected to bolster Subic’s attractiveness as a vehicle for trade promotion in the region.

“A lot of entities have signified interest in joining the PRBC, but as of now we limit our membership to dominant business players and individuals who are in the know in so far as the Russian market is concerned,” De Venecia said.

He said that the PRBC also has an overseas-based auxiliary group that contributes in the aspects of banking and finance, cooperation and tie-ups, and advisory.

De Venecia said the PRBC is now focusing on the development of seven areas in RP-Russia trade relations. These are: oil, gas and mineral resources, food and agribusiness, tourism, manpower services, general trading, forestry, and communications.