Russian capitalists eyeing business prospects in PHL

CEBU, Philippines - An influx of Russian investors is expected in the next few months in the country as Russian capitalists are now eyeing the Philippines as a potential investment site specifically in tourism, infrastructure, energy and telecommunications.

Russian Federation Ambassador to the Philippines Niklay Kudashev said that a number of Russian companies are exploring possibilities of investing in the Philippines, in fact some of them are already conducting feasibility studies for possible joint venture projects with Filipino capitalists.

Kudashev, who was in Cebu recently to grace the “Russia Day” event in celebration of the 35th year anniversary of the Philippines and Russia, said that the strengthened trade relationship between the two countries have prompted Russian businessmen to look at the Philippines as good expansion or investment site within Asia.

With the pronouncement of the Philippine government’s thrust to promote private-public-partnership (PPP), Kudashev said that more Russian investors are enticed to pour in their money in the country, via this program.

At present, a Russian-company is looking into investing in the hotel industry through on a joint-venture partnership with a Filipino capitalist. Another company, Russian Electronic Corporation is also talking with big Philippine-based conglomerates for possible joint-venture move.

He added that a reputable firm called Russian Technologies Corporation, which is into military technology development, has also expressed interest to set up plant in the Philippines.

Executives from Russian Technologies Corporation were in the Philippines recently to sign a Memorandum of Agreement (MOA) with the Philippine Chamber of Commerce and Industry (PCCI) for its intention to develop equipment for renewable energy plants.

He said the Philippines is “hungry for technology”, because of this Russia is willing to offer ‘technology-transfer” efforts, mainly in the fields of tourism, infrastructure, telecom, and energy.

“We have rich technology that we can offer to the Philippines, which would provide economic substance for the country,” he added.

Kudashev specifically mentioned the huge opportunity for the Philippines, particularly Cebu to attract more Russian tourists, saying “Russians love the Filipinos’ warm hospitality, weather, food [seafood], among others.”

In 2010, the Philippines recorded 50 thousand Russian tourists visited the country for the year. This is expected to double in the next few years, as more Russians have discovered the charm of the country. Boracay, Cebu and Palawan, are three of the top destinations for Russian visitors, the Ambassador said.

According to Kudashev the trading between the Philippines and Russia is significantly growing. In fact, during the height of the global crisis trading between two countries reached at US$1 billion.

About seven to eight percent requirement of oil of big oil companies in the Philippines is sourced from Russia. He said there is a pending plan that Russia is going to increase its oil supply to these companies to 40 percent.

He mentioned that the Russian government, as well as its private sector are also interested to learn the “success story” of providing economic zone facilities, including how the Philippines was able to get the attention of the world’s BPO (Business Process Outsourcing) market.

Honoray Russian Consul in Cebu Armi Lopez Garcia said the active move of Cebu local government units (LGUs), both the Cebu Province and Cebu City to strengthen ties with Cities in Russia also fueled the strong interest of Russian investors and tourists to come to Cebu.