Thai trade representative advocates for discussions on a Free Trade Agreement between Thailand and Russia.
Thailand and Russia Gear Up for Trade Talks
In a bid to bolster commercial ties and reignite negotiations for a free trade agreement (FTA) between Thailand and the Eurasian Economic Union (EAEU), Thailand's Trade Representative, Umesh Pandey, held crucial discussions with Russian officials at the St. Petersburg International Economic Forum in June 2025.
With a focus on ironing out trade hurdles and reviving the frozen FTA discussions between Thailand and the EAEU, these high-level conversations revolved around key negotiating partner, Russia, as it stands as the largest economic power within the Eurasian bloc.
The crux of these talks centered around the following concerns:
- Addressing the suspension of Thai animal feed and canned tuna imports by Russia, a move that threatened market access for Thailand.
- Easing difficulties encountered by tourists and businesses due to restrictions on international financial transactions, issues the Russians agreed to reexamine.
- Seeking support from Russia to encourage other EAEU member states to join FTA negotiations with Thailand, a request met with agreement by the Russian officials.
- Boosting broader bilateral trade and investment ties, as the total trade in 2024 increased by 4.59%, amounting to approximately US$1.58 billion, signaling significant potential for increased commerce[1].
Although Thailand has shown eagerness to delve into FTA discussions with the EAEU, the negotiations currently stand at an early stage compared to other countries actively progressing with similar agreements, such as Mongolia, anticipated to sign in June 2025, and Indonesia, eyeing a signing later in 2025[1][3][5].
The Thai Trade Representative's relentless efforts to advance FTA talks rely heavily on direct engagement with Russian officials, ensuring the resolution of trade barriers and resumption of formal negotiations. However, specific progress and signing timelines remain uncertain as of mid-2025[1][3].
Russian business representatives expressed keen interest in collaborating with their Thai counterparts across sectors including pharmaceuticals, banking, hospitality, and information and communication technology (ICT). The most frequently raised concern from both Thai and Russian businesspeople is the payment system, which is heavily influenced by sanctions and financial barriers, making it a significant concern hindering sustainable trade and investment growth.
With Russia currently serving as Thailand's 35th largest trading partner globally and the largest among EAEU member states, Thailand recorded a trade surplus of US$188.67 million with Russia in 2024. Thai exports to Russia amounted to US$885.46 million, a growth of 7.87% over the previous year, with prime products comprising rubber goods, computers and components, machinery, canned and processed seafood, and gems and jewelry. On the other hand, imports from Russia totaled US$696.79 million, displaying a marginal increase of 0.69%, primarily consisting of fertilizers and pesticides, metal ores and scrap, chemicals, plant products, and assorted categories of seafood.
Reaffirming Thailand's determination to forge closer relationships with Russia along with the public and private sectors, the Trade Representative underscored the necessity of swiftly overcoming existing trade barriers to unlock the latent potential for future growth.
- In an effort to enhance the trading relationship, there is a growing interest among Thai and Russian business representatives to collaborate across sectors such as sports, given the significance of mutual trade in areas like pharmaceuticals, banking, hospitality, and information and communication technology (ICT).
- The resolution of trade barriers, including the payment system, remains crucial for fostering sustainable trade growth, as this issue has been identified as a major concern by both Thai and Russian businesspeople, potentially impacting sports and other sectors.
