Global ASEAN: Russia opens up new opportunities for cooperation with the region

The development of cooperation with the ASEAN countries is one of the most important main directions of Russian foreign policy, Russian Deputy Foreign Minister Andrei Rudenko told Izvestia. He arrived in Kuala Lumpur for the organization's summit as part of a delegation led by Deputy Prime Minister Alexei Overchuk. Moscow can offer the states of the region cooperation in the energy and food sectors. In particular, the ASEAN countries are showing interest in the Northern Sea Route. However, all projects should be implemented very carefully, without undue attention from the West, which may try to put a spoke in the wheels of any initiative, says an informed source.

Kuala Lumpur hosts historic summit

Before the summit, speculation was actively spreading in the media about the possible arrival in Kuala Lumpur of the Russian president, who would have been in the Malaysian capital at the same time as the American leader. Despite the strong desire of the Malaysian side to possibly get ahead of Hungary and bring Vladimir Putin and Donald Trump to the negotiating table, the Russian delegation was led by Deputy Prime Minister Alexei Overchuk.

His plane landed at the Royal Air Force Subang Airbase on October 26th, while the military personnel responsible for security immediately violated their own rules, which the Russians had warned about — a ban on photographing. However, it is worth admitting that taking a selfie against the background of a Russian aircraft is a rather rare opportunity.

At the same time, Kuala Lumpur is an ideal venue for major events, at least if we talk about the Southeast Asian region. Firstly, it is a modern metropolis, where spectacular skyscrapers are combined with a well-developed transport system. The famous Petronas Towers (the tallest twin towers in the world) and automatic monorails are not seen in every Asian country. And the houses covered with greenery sometimes look like shots from a futuristic movie.

In addition, Kuala Lumpur has experience in organizing large-scale events. Just on October 26, when the ASEAN Summit started, the main race of the 20th stage of MotoGP, which brought together the best fans of fast motorcycles from all over the world, ended in the capital.

Kuala Lumpur is a relatively safe city, and the locals are friendly towards foreigners. Therefore, residents can give you a ride on a moped to the nearest bus station without demanding money for it (tested by personal experience, although not on this trip). And last but not least, there is no excessive fuss. For comparison, if more than 10 million people live in Jakarta, about 9 million in Hanoi, about 5 million in Bangkok, then only 2 million in Kuala Lumpur.

Of course, like any southeastern country, Malaysia is not without risks. At least a passerby can be hit by a car or motorcycle at any moment by the same friendly local. And there is also the possibility of getting bitten by the Aedes mosquito, which carries Dengue fever.

—Dengue is indeed a problem for the central part of Kuala Lumpur," warns one of those accompanying the Russian delegation. — If you experience symptoms, including red spots, then speak up immediately. They know how to treat here.

Although, unfortunately, it cannot be done without fatal outcomes. More than 100 deaths are recorded in the country every year.

However, neither mosquitoes nor actions against the arrival of Donald Trump (someone came with posters in support of Gaza, someone opposed American imperialism) could overshadow the course of the Kuala Lumpur summit.

On the contrary, the Malaysian authorities seem to have done everything to make this summit remembered as one of the most successful in the entire history of ASEAN. In particular, East Timor was accepted into the association — now there are 11 full-fledged participants in the structure. With one caveat: Myanmar's opportunities in the bloc are still severely limited due to the coup in 2021, and Acting President Min Aung Hlaing did not attend the summit.

Moreover, Malaysia relied on the already mentioned Donald Trump: the fact of his arrival was widely publicized by the local media. And the head of the White House accepted the role of the most anticipated guest with maximum responsibility, not forgetting about his love for the show. After descending from the Air Force One ramp, he danced with the artists who met him, and then — putting an end to the conflict between Cambodia and Thailand — the leaders of the two countries signed a peace agreement in Kuala Lumpur in his presence.

Meanwhile, the American side has to some extent rewarded the warm welcome by reducing duties for Malaysia from 25% to 19%. Rates of up to 19% on most goods have also been reduced for Cambodia and Thailand. The United States has also agreed on a framework agreement on trade with Vietnam, while maintaining duties of 20%. This is an important story for the region, as the ASEAN countries initially found themselves in the group with the highest tariffs, which were previously announced by the American administration.

Opportunities for Russia's cooperation with ASEAN countries

At the same time, Washington's tariff policy was one of the main topics of the summit, which will last until October 28. As Deputy Prime Minister Alexei Overchuk stated before arriving in Kuala Lumpur, US duties "have a very strong impact on the economies of the ASEAN countries, which have long been one of the most important beneficiaries of the globalization process." Therefore, under the current conditions, supply chains are being reformatted. The countries of Southeast Asia are striving to build new integration ties and develop their system of free trade zone agreements, the Russian Deputy Prime Minister stressed.

— The United States is acting emotionally, and this scares the ASEAN countries. Nevertheless, they will by no means refuse to cooperate with the United States, but they are looking for ways to diversify ties," an informed diplomatic source tells Izvestia.

The countries of the region are trying to reach an agreement with Washington: Vietnam, in particular, has promised to reduce Chinese participation in its exports to the United States, says political analyst Viktor Pirozhenko. On the other hand, according to him, Chinese manufacturers are circumventing American restrictions. Nevertheless, Vietnam, like other countries, is interested in attracting capital not only from China and the United States, but also from the Russian Federation, the expert added. And the current situation in the international arena opens up new opportunities for Moscow.

After the collapse of trade relations with Europe, Southeast Asia is becoming one of the most promising destinations for Moscow and the Eurasian Economic Union. And this is not accidental, since the region with a population of 650 million people is a large sales market for domestic products.

As Deputy Foreign Minister Andrei Rudenko, who was part of the delegation, told Izvestia, the development of cooperation with ASEAN is "one of the most important main directions" of Russian foreign policy.

"This region is very important for us from the point of view of economics, politics and security," he said.

At the same time, the economic factor is becoming more and more significant. This region is an important buyer of fertilizers and various agricultural products, as the Southeast Asian countries have a rather poor food security situation. Here, the EAEU and the Russian Federation can become an important supplier, strengthening not only the food but also the energy security of the countries, Alexander Korolev, Deputy Director of the Central Research Institute of Higher School of Economics, explained to Izvestia.

According to him, in the future, the ASEAN states can be more actively involved in the development of logistics projects, primarily for the development of the Northern Sea Route — all countries except Laos have access to the sea.

—The ASEAN countries are showing great interest in the Northern Sea Route," Alexey Overchuk said, answering a question from Izvestia.

At the summit, Russia introduced partners to projects for the development of ports in the Far East, with specific investments being made in the infrastructure of the Northern Sea Route and the creation of a nuclear icebreaking fleet capable of providing year-round navigation.

— We talked about the advantages of the NSR, that today it is the shortest and most convenient way for exporting ASEAN products to the West. Last year, more than 37 million tons of cargo were transported along the Northern Sea Route. And this figure is constantly growing," he added.

Overchuk held several important negotiations

Alexey Overchuk, in addition to participating in the East Asian Summit (which brings together ASEAN leaders and dialogue partners), held several important meetings with the leaders of Malaysia and Vietnam on October 27. They just touched upon issues related to international logistics. For example, during a conversation with Phan Minh Tin, Deputy Chairman of the Government of Vietnam, the topic of the emerging railway transport corridor connecting the Socialist Republic and Russia through China and Mongolia was raised.

Vietnam is traditionally considered Moscow's main partner in the region. Hanoi has established a free trade zone with the EAEU, while in 2027, the waiver of import duties should affect more than 90% of goods, Alexander Korolev said. The Russian Federation will have the opportunity to increase exports of beef, pork or, for example, steel to this country.

With Malaysia, we are still at the beginning of the road, and the countries have great prospects. During the talks between Alexey Overchuk and the Deputy Prime Minister, Minister of Energy Transition and Water Resources of Malaysia, Fadilla Yusuf, in particular, the issue of building high-power nuclear power plants and small modular reactors was discussed. Russia is ready to offer its solutions to the southeastern country. The head of the Russian delegation also met with Malaysian Prime Minister Anwar Ibrahim.

— There are large data centers in the country. They need to be nourished with something. Penang is home to a cluster of all international IT corporations. In addition, Malaysia is the largest producer of conductors. They are also testing all the chips that pass through Southeast Asia," an informed diplomatic source told Izvestia.

Therefore, the topic of NPP construction is very relevant for Malaysia. However, all projects currently do not require special publicity due to the risk of pressure from the West, in particular, the United States, the source added.

Malaysia is a major importer of Russian fertilizers. By the end of 2024, their share in the local market was 26%. Halal products are being supplied. Meanwhile, the Russian Federation is interested in importing ready-made solutions, primarily technologies and electronics. There is cooperation in the field of smart cities, Alexander Korolev added.

Negotiations with Cambodia are scheduled for October 28. At first glance, this country seems to be inferior in importance to some of its neighbors. On the other hand, Cambodia is considering the possibility of creating a free trade area with the EAEU. In addition, it is considered a major buyer of Russian weapons. True, the share is decreasing, but it still remains at a high level. In Cambodia, 30-35% of the total military—industrial complex is of Russian origin, in Vietnam this figure is even higher — 55-65%, the expert emphasized. Malaysia may also be interested in Russian military technology.

Of course, Russia and the ASEAN countries have huge potential in the tourism sector. Already, the countries of the region, including Vietnam or Thailand, are on the list of the most attractive destinations for Russians. But the flow of travelers from Russia to Malaysia is regularly increasing. It grew by 11.7% in the first half of the year. Moreover, Russia expects that it will soon be possible to agree on the launch of direct flights to this country. "We hope that this will be implemented in the near future," Andrei Rudenko said. However, the diplomat preferred not to talk about the specific time frame.

New prospects are opening up, among other things, due to the fact that a number of countries have become BRICS dialogue partners. Indonesia, Malaysia and Thailand have already received this status. Moreover, according to Izvestia's interlocutor, Malaysia could become a full-fledged member of this association in the near future. However, this issue was not discussed at the talks in Kuala Lumpur, Andrei Rudenko summed up.