The Philippines, with its policy of “friend to all, enemy to no one” will continue to trade with Russia and does not see any changes to its economic relations as of the moment amid sanctions slapped by big countries against Moscow, according to Trade Secretary Ramon Lopez.
There might in fact be a sliver of silver lining in the ongoing conflict between Ukraine and Russia.
Lopez yesterday said the rising prices of the nickel and copper in the world market can benefit the country, being a major exporter of these minerals.
“We continue commercial relations with Russia , Ukraine and the west. Right now, per report from (trade post in Moscow), business and commercial transactions continue in Russia. Malls, banks and business establishments are open. People are working and in schools,” Lopez said in a text message.
But Lopez said financial transactions of Russia with other countries may get affected following the announcement by the United States, Britain, Europe and Canada of sanctions, including blocking certain lenders’ access to the SWIFT international payment system. This would also effectively curb Russian exports and imports.
The European Union has vowed to introduce measures to crimp Russia’s technological position in key areas – from high-tech components to cutting-edge software.
The US earlier said it was implementing export controls that will severely restrict Russia’s access to semiconductors, computers, telecommunications, information security equipment, lasers, and sensors that it needs to sustain its military capabilities.
“(Russia’s) production, supply chain, trade and payments with other countries will be more difficult. Technology transfers between Russia and the west, accordingly, will also be disrupted,” Lopez added.
Lopez also does not see changes in the timetable of the Philippines-Russian Federation Joint Commission on Trade and Economic Cooperation (JCTEC), a mechanism to improve bilateral economic relations in line with the country’s objective of re-balancing the country’s portfolio by pursuing non-traditional markets in the Asia Pacific region.
JCTEC’s last engagement in April 2018 discussed initiatives on trade promotion, accreditation of products for export, utilization on the the Eurasian Economic Union Generalized System of Preferences , proposal for a free trade agreement and updating of the 1992 Investment Promotion and Protection Agreement.
Globally, Lopez said the conflict
has started to disrupt commodity prices.
“Oil price immediately reacted with price rising above $100 per barrel only to subside back to around $92 when it was announced that sanctions may exclude energy transactions. Other commodities that can be affected would be wheat, aluminum, platinum, nickel, and copper,” Lopez said.
But the Philippines stands to gain from the increase in prices.
Lopez added the uncertainties can affect the major economies and their production, inflation and trade will eventually impact partners like the Philippines.
He said the impact depends on the extent and how long the Ukraine-Russia conflict will last and the sanctions on Russia
“It is important that the conflict does not escalate further. Peace and development is still the best policy,” he added.
“We continue to trade with all and develop mutually beneficial development, trade and investment collaboration with all,” Lopez said.
