Russia-Thai Trade Surges Amid Settlement Hurdles; FTA Pushed at Investment Forum

Key summary

Bilateral trade between Russia and Thailand reached approximately $1.7 billion in 2025 and grew to $1.55 billion in the first eight months of 2026, representing a 25 per cent year-on-year increase driven by a 90 per cent rise in Russian exports totaling $1.05 billion. Accumulated Russian foreign direct investment (FDI) in Thailand has reached $1.155 billion, more than doubling the $500.2 million recorded in 2018. However, business leaders warn that the lack of direct financial infrastructure forces over 100 Russian firms to route payments through third-party jurisdictions like China and Laos or use alternative instruments, significantly increasing transaction costs. Ivan Demchenko, Chairman of the Russia–Thailand Business Council, highlighted these settlement bottlenecks at the upcoming 2nd Russian–Thai Investment Forum, themed "Russia and Thailand: A New Era of Economic Cooperation," where discussions will focus on establishing direct currency clearing channels. Beyond payments, representatives are advocating for a comprehensive Free Trade Agreement (FTA) between Thailand and the Eurasian Economic Union (EAEU) to address tariff reductions and non-tariff barriers such as certification and standardisation. While Russian exports surged in industrial and agricultural supplies—including organic fertiliser (+25 per cent), aluminium (+60 per cent), plastic (+80 per cent), and fur products (more than doubled)—Russian imports from Thailand dropped by 27 per cent to $500 million in the first eight months of 2026. To facilitate market access for non-resource goods, the Russia–Thailand Business Council signed an agreement in September 2026 with the Russian Export Center to open a permanent "Made in Russia" national pavilion in Bangkok, which will provide support on Thai veterinary, phytosanitary, and technical certification rules. The investment landscape is also shifting from real estate towards high-technology sectors and digital services, supported by the Thailand Board of Investment (BOI), which facilitated over 40 Russian projects between 2015 and 2025. Forum organisers are publishing an investment catalogue with 81 promising projects valued at over $4.6 billion, backed by the Roscongress Foundation and RK-Invest.