Logo of Phnom Penh Post newspaper Phnom Penh Post - Russia and Cambodia look to increase investment

Russia and Cambodia look to increase investment

Prime Minister Hun Sen shakes hands with with Russian Prime Minister Dmitry Medvedev yesterday in Moscow. Photo supplied
Prime Minister Hun Sen shakes hands with with Russian Prime Minister Dmitry Medvedev yesterday in Moscow. Photo supplied

Russia and Cambodia look to increase investment

Cambodia and Russia have officially inked agreements to promote bilateral trade and investment until 2020, although concrete details about how that will be accomplished have yet to be released.

During the ASEAN-Russia Commemorative Summit this week, Prime Minister Hun Sen led a delegation of high ranking officials and members of the business community to discuss ways of boosting economic relations.

In total, Cambodia signed eight agreements with their Russian counterparts. Such business agreements include a memorandum of understanding (MoU) between the Russian Ministry of Communications and Mass Media and the Cambodian Ministry of Posts and Telecommunications to cooperate on information technology.

Pan Sorasak, the newly-appointed Minister of Commerce, signed a joint statement with Alexei Likhachyov, the Russian first deputy Minister of Economic Development, on a list of project proposals aimed at increasing trade and investment up to 2020.

The signing of the agreements were presided over by Russian Prime Minister Dmitry Medvedev and Hun Sen.

“We have signed a list of bilateral projects to be implemented by 2020. It will provide the basis for developing investment cooperation and trade and for addressing a number of other issues,” said Medvedev, according to a transcript from the signing ceremony.

“Although bilateral trade grew by about 40 per cent at the beginning of the year, it is well below our potential in absolute terms,” he said.

Medvedev added that Russia has good prospects for investing in the construction of energy facilities, supplying cargo lifting equipment, and drilling and mining tools. He also highlighted that there was room to develop the agriculture and telecommunications sectors.

Hun Sen welcomed the agreements and said the respective governments would continue to work to strengthen political and economic partnerships.

“We signed six agreements during the prime minister’s visit in November last year, and today we have signed another eight agreements. This is evidence of our trust in each other,” he said, adding that Russia should continue to pursue opening up direct flights between Moscow and Phnom Penh to boost tourism.

Since Medvedev’s first state visit last November, the two countries have been trying to hammer out a bilateral trade deal.

While specific details have yet to emerge on the framework of the agreement, numerous Russian businesses have conducted investment tours throughout the Kingdom.

In March, 16 Russian firms alone visited Cambodia, including the state-run firm JSC Russian Railways, and Inter Rao – an energy holding company.

However, Stephen Higgins, managing partner of investment firm Mekong Strategic Partners, said it would be difficult for Cambodia and Russia to develop a strong trade or investment relationship because each country’s economic advantages do not overlap.

“Russia’s advantage is very much centred on cheap fossil fuels, but that isn’t really going to help Cambodia as we look forward [in the next] five to ten years,” he said.

Trade volume between Russia and Cambodia fell by 16 per cent in 2015, totalling $110.7 million.

MOST VIEWED

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one

  • Water supply authority assures public shortages over early ‘24

    The Phnom Penh Water Supply Authority (PPWSA) asked for understanding from Phnom Penh residents in some communes where water pressure is weak. They assured residents that all supply issues will be resolved by early 2024, but have suggested that residents use water sparingly in the meantime.

  • Khmer ballet documentary debuts April 1

    A new documentary, The Perfect Motion, or Tep Hattha in Khmer, will premiere to the public on April 1. The documentary film follows two intertwined storylines: the creation of a show called Metamorphosis by the late Princess Norodom Buppha Devi (her very last production) and the

  • EU’s Sokha resolution ‘a sovereign rights breach’

    The National Assembly (NA) said the European Parliament (EP) did not respect the Kingdom’s independence and sovereignty when it passed a resolution strongly critical of the recent conviction and sentencing of former opposition leader Kem Sokha for “treason”. On March 16, the EP issued a