Oct. 5--MOSCOW -- Thailand is reviving barter trade plans with Russia in a bid to stimulate bilateral trade after its value plummeted because of the global recession.

Barter trade would improve the purchasing power of the two countries, whose businesses are facing tight liquidity due to the world economic crisis, said Veerasak Jinarat a vice-minister for Commerce. He discussed the idea in Moscow with Sergey Maltsev, vice-president of the Moscow Region Chamber of Commerce, and Andrei Slepnev, Russia's deputy minister of economic development.

Liquidity problems facing both exporters and importers are considered the main cause of a 57 percent drop in two-way trade to only US$905 million in the first seven months of this year.

Thailand's exports fell 59 percent to $224.47 million, with imports from Russia down 56.3 percent to $680.22 million.

Two-way trade last year was worth $3.81 billion. Exports from Thailand totalled $959.11 million and were mostly automobiles and parts, garments, rice, televisions, air-conditioners, plastic pellets, gems and jewellery. Imports amounted to $2.826 billion and were mainly iron and steel products, crude oil, fertilisers, pesticides and minerals.

"The Russian private sector currently has demand for Thai agricultural products such as rice, sugar, cooked chicken and processed food, while Thailand needs raw materials such as oil, petroleum, industrial and agricultural machinery, chemicals, fertiliser and steel," said Mr Veerasak.

"Barter trade will help increase purchasing power of the two countries without using money. This may start from business-to-business and business-to-government deals before expanding to government-to-government."

Thailand and Russia have agreed to set up a joint technical working group to study the possibility of barter trade, said Mr Veerasak. The Trade Negotiations Department chief will lead Thailand's team of negotiators.

To promote more trade and investment, the two countries also plan to set up a joint trade committee during the joint council meeting hosted by Thailand's Foreign Ministry.

Mr Veerasak said Russia was valued for its economic stability, rich natural resources and a population of about 142.8 million.

Potential businesses for Thai investors include spas, restaurants and poultry. Russian investors want to invest mainly in construction, agricultural machinery, chemical products and medical equipment to capitalise on Thailand's planned infrastructure investments.

To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com.

Copyright (c) 2009, Bangkok Post, Thailand

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

<< -- 10/08/2009>>