Russian President Vladimir Putin leads a high-powered team of energy, banking and weapons magnates this week on a three-country tour starting Thursday in Indonesia, before heading to Australia and the United Arab Emirates. This will be Putin's first visit to Indonesia, the world's most populous Muslim nation, where the government is keen to boost foreign investment in developing rich mineral resources. The Kremlin leader, who will be meeting Indonesian President Susilo Bambang Yudhoyono, is expected to preside over major investment deals before going on to Sydney for the Asia Pacific Economic Cooperation (APEC) summit.
The swing is part of a Kremlin strategy of expanding diplomatic influence in Asia and the Middle East on the back of Russia's thriving arms trade and growing importance as an energy power, analysts said. "Russia wants to find a new niche in eastern Asia. Russia wants to enter into the region and establish its presence through the economy, not military bases," said Alexei Voskresensky at the Far East Institute in Moscow. "It's been clear for a while that eastern countries are playing a growing role in Russian foreign policy," he said.
Big business deals are expected in Jakarta, including a memorandum of understanding on a joint venture between Russia's Rusal aluminum giant and Indonesian nickel and gold miner PT Antam for setting up an aluminium smelter in West Kalimantan province, Antam said. Putin's visit is also due to see the signing of a one-billion-dollar credit line for Jakarta to buy Russian military hardware, Kremlin advisor Sergei Prikhodko was quoted as saying by Russian news agencies Monday. Indonesia signed a memorandum of understanding on buying six Sukhoi-30 fighter planes at a Moscow airshow last month.
Russian oil major Lukoil is also expected to sign a deal with state-owned Pertamina on exploration of onshore and offshore fields, Russia's RBK Daily business newspaper reported Tuesday. Accompanying Putin will be the chairman of Lukoil, Vagit Alekperov, the head of the Trade and Industry Chamber, and billionaire investor Vladimir Yevtushenkov, among other business leaders, the Kremlin said. From Indonesia, Putin flies to Australia for an official visit Friday and talks with Prime Minister John Howard, followed by the two-day, 21-nation APEC summit over the weekend, where Putin will meet the Chinese, Japanese, South Korean and US leaders, Interfax reported.
A deal on supplying Australian uranium to Russia for use in civilian nuclear power is widely expected during Putin's visit. The Kremlin leader, who is due to step down next year at the end of his second term, will be accompanied by the head of Russian nuclear agency Rosatom, Sergei Kiriyenko, and businessmen including the chairman of industrial giant Basic Element, the president of state-owned Vneshtorgbank, and the director of Norilsk Nickel. To round off the tour Putin stops Monday in the United Arab Emirates, along with the heads of space agency Roskosmos, Aeroflot, and arms exporter Rosoboronexport. Putin will meet President Sheikh Khalifa bin Zayed al-Nahayan for talks on bilateral relations, WAM news agency said without elaborating.
(AFP)