Through both business and diplomacy, the ties between Korea and Russia have become among the nation’s most important.

The next step for both countries is to enhance high-level exchanges, boost strategic cooperation and work together on issues relating to the Korean Peninsula and the international stage.

“Last November, when both leaders met, they reached a general agreement that both countries would cooperate in a strategy to modernize the Russian economy, which is a very comprehensive and huge strategy and it’s going quite well,” said Russian Ambassador Konstantin Vnukov to The Korea Herald.

During last year’s meeting, Russian President Dmitri Medvedev and President Lee Myung-bak agreed to raise relations to a higher level by regularizing summit diplomacy.

Bilateral trade grows

Trade between both countries is expected to balloon to $20 billion for the first time this year.

Areas of interest for both countries are the development in the Far East and Siberian regions as well as towards Russia’s economic modernization, one of the country’s main objectives.

“Besides the gas pipeline, there are many ways to work together; it’s a comprehensive strategy for the quickest development of this region because without this region it would be difficult to achieve these economic goals,” he said.

The deal to develop eastern Russia will embrace all spheres of the economy, social life, education while attracting foreign investment.

Far East investments open

“One of my tasks for this year and the future is to present more information to Korean businesses about the investment possibilities in the Asian part of Russia,” he said. “This year, we had several presentations explaining our regions like Sakhalin and Yakutia which is the largest federal subject of Russia.”

Comprising of half of the Far Eastern Federal District, it is the largest sub national governing body by area, just smaller than India and is blessed with tremendous amounts of raw materials.

The ambassador noted that the Yakutia area, otherwise known as the Sakha Republic, contains large reserves of oil, gas, coal, diamonds, gold, silver, tin, tungsten and many rare earths.

Furthermore, 99 percent of all Russian diamonds are mined there, accounting for over 25 percent of the world’s diamond production making Russia the second largest producer of rough diamonds in the world after South Africa.

“It is also the coldest place on earth,” he said with a smile.

“The presentation of business possibilities in Yakutia garnered a lot of interest from Korean companies and now they are conducting negotiations for future agreements concerning the exploration of coal, mining, gas and crude oil, some other metals, and rare earth elements,” Vnukov added.

More rounded relationship

Agreements have been reached recently that will have Russia export to Korea about 17 billion cubic meters of natural gas annually by 2017, with the possibility of increasing that number to 20 billion cubic meters by 2020.

One area of importance to Russia is the relationship that will increase its presence in sectors like information technology, biotechnology, nanotechnology, energy efficiency, medical technology and devices.

“We consider Korea a main partner in this part of the world for the cooperation of the modernization of our economy,” said Vnukov. “We have a highly educated workforce and in some of the sectors, the highest in the world, but what we need with Korea is cooperation in innovation and commercialization.

“Korea is quite advanced in this field so if you combine our advantages we would have a very bright future of cooperation and of course bigger figures of trade and investment.”

It is projected that trade will increase by more than 30 percent compared to the same quarter in the previous year.

“What we need is for future investments from both sides,” he said.

Investments, two-way street

To assist Russian companies in entering into the Korean market, Vnukov is working together with local ministries to supply them relevant information about the possibilities of Russian investments in Korea.

“Russian companies have the desire to invest abroad, they know about Korea’s place in an economic world and the climate here for investments is quite good, it’s safe, with guarantees, then why not,” he said, adding that Korea was more attractive than other countries in the region.

As for outer space cooperation, Vnukov noted that it was an important part of the relationship and included not only rockets but also launch facilities.

Scientists on both sides are examining what caused the failure of the second attempt to launch Korea’s Naro space rocket.

“They have a plan to continue the cooperation and after they check all the possible causes of these failures they will begin their preparation for the next launch,” he said. “There is a neutral commission of experts on both sides, so I have no doubt that we will continue this cooperation, with the launch taking place maybe next year when everything is ready. The question is not time, but success.”

By Yoav Cerralbo (yoav@heraldcorp.com)