Putin aims for Asian trade links at summit

Russian president Vladimir Putin will meet other Pacific Rim leaders this weekend at the Asia Pacific Economic Cooperation (APEC…

Russian president Vladimir Putin will meet other Pacific Rim leaders this weekend at the Asia Pacific Economic Cooperation (APEC) forum in Vietnam.

Russia's foreign and economic policies have traditionally been focused on Europe - the recipient of nearly 60 per cent of its exports so far this year compared to less than 12 per cent for APEC countries, according to government data.

Russia accounts for only about 1 per cent of trade within APEC, whose 21 members represent nearly half of global trade.

Under Mr Putin, the Kremlin is working to see that change.

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"Russia no longer sees itself as a global superpower. It sees itself as a regional power in Europe and in Asia and now we are seeing an attempt to rebalance toward Asia," said Eric Kraus, head of the Nikitsky Russia hedge fund

Asia, and in particular energy-hungry China, presents a deep and liquid market for Russia's myriad raw materials. As well as oil and gas - which at present are exported almost exclusively to Europe - Russia can boast minerals, chemicals, ores, pulp and paper and timber.

Ultimately, analysts say, Russia expects that in exchange for committing its vast energy reserves, APEC governments will become future customers for the more high-tech products the nation eventually wants to make as it seeks to diversify its economy and make it less vulnerable to oil price changes.

By developing ties to the rest of Asia, Russia is consciously building a counterweight to the perceived dominance of the United States and EU in global politics.

Increased economic cooperation is also seen as a means to galvanise the economy of Russia's sparsely populated Far East.

AP