We wish to add the Chief Executive underscored that any agreement that will be executed or performed for such purpose shall undergo the proper domestic processes.

President Rodrigo Roa Duterte and the members of his delegation hold a bilateral meeting with Russian Prime Minister Dmitry Medvedev and other Russian officials at the Prime Minister's Office in Moscow on October 2, 2019. ROBINSON NIÑAL JR./PRESIDENTIAL PHOTO

Russian companies are expected to play a major role in the country’s energy from here on after they responded positively to President Rodrigo Duterte’s offer for them to invest in the Philippines during his meeting with Rosneft Oil chief executive officer Igor Sechin in Moscow.

The President’s spokesman Salvador Panelo said the President invited Rosneft, the leader in the Russian oil sector, to invest in the Philippines, particularly with regard to oil and gas development.

The Palace official added Mr. Duterte had assured officials of the Russian firm that their investments are safe in the Philippines.

“We wish to add the Chief Executive underscored that any agreement that will be executed or performed for such purpose shall undergo the proper domestic processes and comply with applicable laws and pertinent rules and regulations so as not to leave any room for corruption or irregularity,” Panelo said.

Duterte was joined by Foreign Affairs Secretary Teodoro Locsin Jr., Executive Secretary Salvador Medialdea, Finance Secretary Carlos Dominguez III, Defense Secretary Delfin Lorenzana, Energy Secretary Alfonso Cusi, National Security Adviser Hermogenes Esperon Jr., Sen. Christopher “Bong” Go and Philippine Ambassador to the Russian Federation Carlos Sorreta during the meeting.

Daily Tribune tried to contact Department of Energy Secretary Alfonso Cusi, who was with the Moscow contingent, for details on the possible infusions but he did not give a reply.

Mr. Duterte also gave assurance to Rosneft and his group that included Zeljko Runje, vice president for Offshore Projects of Rosneft; Didier Casimiro, vice president for Refining, Petrochemical, Commerce and Logistics; and Boris Kovalchuk, chief executive officer of Inter RAO — that their investments will be safeguarded when they invest in the country and that “he would not tolerate corruption in the bureaucracy.”

Sorreta said Russia, being a major player in oil and gas, can supply the country’s energy demand and eventually bring down high energy cost.

“That’s what we’re looking at. But we’re looking beyond. We’re looking at supply also to bring down the increase in supply,” Sorreta said.

Beyond that, Sorreta said they want Russia to invest in the energy sector by setting up natural gas plants and in liquefying this.

There are also preliminary discussions on Russian participation in the country’s possible adoption of nuclear energy to meet its growing demand for power, the diplomat said.

“It’s still very early for nuclear power (to proceed) but there are some talks regarding it, trying to understand what Russia can do and what we are ready to absorb,” he said.

But with regard to nuclear use, the Philippines and Russia have very advanced talks in non-energy uses, particularly for medicine and radiology, the ambassador said.

Aside from energy, the Philippines is looking at more Russian investments in other sectors. Sorreta said Russian investors are being enticed to partner with Filipino businesses for agricultural production.

Russia is already exporting trucks to the Philippines, Sorreta said, noting two top Russian brands are now being marketed in the Philippines.

“And hopefully they will see and expand our capabilities to either build components or to assemble. Who knows maybe one day manufacture,” he said.

And like the energy sector, Russia, considered a powerhouse in information technology (IT), is also looking at investing in the country’s IT sector.

“They are very good at what they do. And we should not be closed-minded and you know, learn. It doesn’t mean we’re going to be like them but we have to learn,” he said. “I can’t say but there’s a Philippine company that is very interested in Russian IT.”