Russia targets Thai and ASEAN trade through Far East corridor

Russia is strengthening its economic links with Thailand and ASEAN through a trade corridor centred on the Russian Far East, with expanded shipping services, agricultural cooperation and investment partnerships supporting a target of US$45 billion in trade by 2035.

The global economic map is being redrawn amid geopolitical turbulence and increasingly divided trading relationships. Western sanctions have accelerated Russia’s efforts to shift its economic focus away from Europe and towards the East.

Over the past decade, trade between Russia and ASEAN has increased by almost 58%, reaching approximately US$21 billion in 2025. Growth continued in the first half of 2026, with two-way trade expanding by around 10%.

Sergey Katyrin, president of the Chamber of Commerce and Industry of the Russian Federation, described the Russia-ASEAN strategic partnership as an important source of stability for the Asia-Pacific region during a period of geopolitical uncertainty.

“The almost 58% increase in trade over the past decade is only the beginning. The untapped potential is enormous, and the geographical proximity of the Far East to ASEAN creates real opportunities to turn friendship into tangible economic results,” he said.

The Russia-ASEAN Business Dialogue at the 2026 Eastern Economic Forum (EEF) in Vladivostok highlighted this changing direction, alongside the 35th anniversary of Russia-ASEAN relations.

Once widely associated with cold weather and remoteness, the Russian Far East is increasingly being presented as a gateway connecting Russia, Eurasia and Southeast Asia, opening discussions on broader economic cooperation.

Vietnam positions itself as an ASEAN distribution hub

At the bilateral level, ASEAN countries offer different strengths and connections within this emerging economic network.

Vietnam occupies a prominent position, with two-way trade with Russia valued at US$4.7 billion, described as approximately one-quarter of Russia’s total trade with ASEAN. It was also the first ASEAN member to conclude a free trade agreement with the Eurasian Economic Union (EAEU).

Vietnamese Finance Minister Ngo Van Tuan outlined five priority directions for cooperation, signalling the country’s readiness to deepen commercial ties with Russia.

As Vietnam enters a new phase of development, targeting average annual economic growth of more than 10%, it is offering to serve as a bridge for Russian businesses entering ASEAN. Its trade agreement with the EAEU also provides opportunities to expand exports to Eurasian markets.

For Cambodia, Lim Phanphearak, undersecretary of state at the Commerce Ministry, emphasised that the relationship was not new, pointing to 70 years of diplomatic ties with Russia.

Cambodia’s approach to the trade corridor focuses on bringing micro, small and medium-sized enterprises into global production networks.

Myanmar, meanwhile, is pursuing structural reforms through a newly established Ministry of Digital Development and Communications and the preparation of its first digital law.

Its strategy rests on three pillars: digital government, the digital economy and a digital society. A flagship initiative involves developing the country’s first “cybercity” in its central region, with advanced Russian technology playing a core role.

Indonesia is approaching the final stages of its free-trade arrangements with the EAEU. Trade between Russia and the Philippines also increased in the first half of 2026, rising by 6%, according to the Russia-ASEAN Business Council’s account of the dialogue.

Agricultural opportunities for Thailand

Trade between Russia and Thailand grew by 32% in the first half of 2026. Meat and dairy products were among the prominent categories, supported by Russian efforts to remove trade barriers, improve product standards and obtain halal certification for exports to Thailand and other ASEAN markets.

Thailand also serves as an important container collection point and port of origin within the region’s feeder-shipping network.

Cargo from Bangkok is consolidated in Ho Chi Minh City before being shipped to Vladivostok and transported onwards to major Russian markets, including Moscow.

Another promising area involves financial cooperation and large-scale investment.

AFK Sistema, a major Russian investment and technology group, sees particular potential in Thailand and is discussing joint ventures in agriculture, food security and infrastructure in the Russian Far East, including projects in Khabarovsk.

Artem Zasurskiy, Sistema’s vice-president for international cooperation, said that doing business internationally was not always straightforward, but ASEAN had emerged as an unexpectedly promising opportunity. Many businesses in the region were open to working with Russian partners.

“We are currently piloting smart-city systems, AI facial-recognition technology and solutions that support cyber sovereignty without dependence on the United States,” he said.

“Crucially, we are discussing agricultural and infrastructure joint ventures with organisations in Thailand, because financing costs there are below 2%, compared with more than 14% in Russia.

“This creates a major opportunity to connect liquidity and competitively priced capital, making large joint projects more commercially viable.”

Shipping and rail connections reduce distance

Distance and volatile freight rates have historically been major obstacles to Russia-ASEAN trade.

FESCO Transportation Group is seeking to address those challenges by connecting shipping, ports and rail services, reducing dependence on Western shipping lines.

Its FESCO Intra Asia Service (FIAS) operates a regional feeder loop linking Ho Chi Minh City with Port Klang and Pasir Gudang in Malaysia, Bangkok in Thailand, and then back to Ho Chi Minh City. The supplied account puts the full rotation at 13 days. FESCO’s published route confirms those ports of call.

The next stage connects the Vietnamese hub with Russia. FESCO operates direct services between Vietnam and Vladivostok, with onward rail connections carrying containers towards Moscow, Novosibirsk and other inland destinations.

The company’s published schedule lists an 11-day voyage from Ho Chi Minh City to Vladivostok and seven days in the reverse direction. It also offers services between Vietnam and St Petersburg, with onward inland distribution.

German Maslov, who heads FESCO’s liner and logistics division, described the network as a bridge between the regions and a means of maintaining Russia’s logistical independence.

“Vietnam has become our main logistics hub. We use feeder vessels to collect cargo from Thailand, Cambodia, Indonesia and Malaysia and consolidate it in Ho Chi Minh City before sending it onwards to Vladivostok and St Petersburg,” he said.

“This allows seafood, agricultural products and fruit from Asia to reach the heart of Russia quickly.

“We may look far apart on the map, but through FESCO’s shipping and railway network, we have created a real bridge between the two regions.”

Cross-border QR payments enter the discussion

Even with improved shipping connections, cross-border payments remain one of the most difficult issues facing international trade.

The discussion presented a financial landscape increasingly divided by sanctions and the political use of the dollar and international banking networks.

It described four emerging clusters: the Western dollar-based system, China’s digital financial system, an evolving “Islamic banking 2.0” model and Latin American payment networks. The question for Russia is how to position itself so that trade can continue without disruption.

Elina Sidorenko, director-general of the Platform for Working with Entrepreneurs’ Appeals and a member of the Russian Presidential Council for Civil Society and Human Rights, said commercial partnerships were easier to develop when payments were convenient and secure.

She argued that Russia should move in the same direction as ASEAN, where countries were connecting payment systems rather than requiring members to adopt a common digital currency.

“ASEAN does not force its members to create a shared digital currency. Instead, it has chosen the simplest approach: connecting through cross-border QR codes, such as Vietnam’s VietQR and the systems used in Indonesia and Malaysia,” she said.

Sidorenko argued that this approach could remove intermediaries and complex correspondent-banking arrangements. She also claimed it could eliminate exposure to Western sanctions, an assertion that should be distinguished from the legal requirements governing the underlying transactions.

She said the immediate priorities were to resolve technical issues and align anti-money-laundering (AML) rules, creating the conditions for sustained annual trade growth of more than 20%.

A US$45bn trade target for 2035

The Russia-ASEAN corridor is intended to extend beyond solving immediate transport problems or expanding conventional merchandise trade.

Its longer-term ambitions include digital economic networks, smart cities and interconnected technology systems.

Nikita Kondratyev, director of the Department of Multilateral Economic Cooperation and Special Projects at Russia’s Economic Development Ministry, said the government was working to remove tariff and non-tariff barriers.

The aim was to make it easier for meat, dairy and other agricultural products to enter Southeast Asian markets.

He said a new Russia-ASEAN cooperation programme running to 2035 was expected to be approved by the end of September, with a target of US$45 billion in two-way trade.

Kondratyev expressed confidence that stronger commercial links, physical infrastructure and exports of smart-city and other digital technologies would help deliver that goal.

For Thailand, the emerging corridor offers connections spanning agricultural trade, food security, shipping and investment, linking its role within ASEAN with Russia’s expanding economic focus on the Far East.

Source: Krungthep Turakij