As part of President Vladimir Putin's plan to take leadership of Eurasia's economic expansion, Alexey Gruzdev, Russia's deputy minister of economic development, along with the largest Russian business delegation to Thailand in modern history, have embarked on a three-day trip here, with the Eastern Economic Corridor (EEC) the main attraction.
Some 50 Russian companies from various sectors, including transport, logistics, energy, IT, digital technology, medicine and biotechnology, took part in business matching sessions with Thai companies on Tuesday before joining a press conference. The delegation is scheduled to visit the EEC today to check on Thailand's readiness and the latest development projects.
The companies include Rostec's Rite, CJSC Transmashholding (the largest maker of locomotives and rail equipment in Russia), Vagonmash (the leading Russian maker of components for freight rolling stock) and Metiz Impeks (a maker of components and materials for production of lower-limb prostheses).
"Thailand is our key partner in Southeast Asia in various capacities," Mr Gruzdev told Thai reporters. "This includes military cooperation and civil aviation, where we have already supplied aircraft such as regional jets and helicopters. We intended to build on this experience and are thinking about organising maintenance and repair services here in Thailand. There are also a lot of other spheres for cooperation."
Earlier this month, the National Legislative Assembly approved a bill on development of the EEC, spanning Chon Buri, Rayong and Chachoengsao provinces. The development of the EEC is expected to attract 300 billion baht in foreign direct investment in its first year.
"The EEC is one of the reasons for us to come here, but it is not the only one, as Russia and Thailand's relationship is developing, but there is more room for improvement," Mr Gruzdev said.
He said trade turnover for the two countries in 2017 was US$2.2 billion (69.3 billion baht), according to Russian estimates. Even if the figure were $3 billion, in line with Thai estimates, it would still not be enough, he said, as there is a lot of untapped potential.
Mr Gruzdev said there is a need to explore new areas such as petrochemicals, pharmaceuticals, medical equipment, robotics, IT and cybersecurity.
The forms of cooperation that the Russian companies are seeking include joint ventures and investment, as well as partnership in R&D, technology, product development and services.
Russian producers are interested in exports of meat and dairy products to Thailand, Mr Gruzdev said.
Victor Kladov, director of international cooperation and regional policy at Russia's state-run Rostec, the defence and high-tech holding giant and maker of the famed AK-47 assault rifle, told reporters that the company is planning to further develop its relationship with the country. Rostec already supplies military and civilian helicopters to Thailand.
The Russian side is further planning to develop its repair and overhaul facilities in Thailand because of the EEC development.
"When the number of helicopters grows big enough, it becomes feasible to set up a technical service centre," Mr Kladov said. "Recently we have signed an agreement with a local Thai company to set up a technical centre in Thailand.
"We are now looking at the possibility of [setting up shop] in the EEC, as we are still looking for a place that is convenient for the end-users. There is huge demand for helicopters, not just military ones. We will be supplying civilian helicopters to Thailand. We have a few ongoing civilian projects and I hope the first civilian helicopter will arrive by the end of this year."
Mikhail Petukhov, deputy director of Russia's Federal Service for Military-Technical Cooperation, said Thailand this year is set to receive enough Kalashnikov assault rifles to arm one or two divisions of the country's armed forces.