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Russia set to boost economic ties with Pakistan - ministry

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ISLAMABAD, September 5 (RIA Novosti) - Russia is seeking to expand its economic presence in Pakistan, the head of a delegation that has arrived in the Asian country said Tuesday.

The Soviet Union maintained close ties with Pakistan and now Russia is moving to restore its influence in the region, including by re-establishing ties with its former partner.

Yelena Danilova, who is in charge of foreign ties with the Economic Development and Trade Ministry, said cooperation between the two countries was far from intensive despite a recent rise in trade.

"In 2002, trade between Russia and Pakistan was only about $100 million but in 2005 the figure rose to $278 million," she said, adding that Russian exports had doubled in the past year, according Pakistani sources.

The head of the Russian delegation, who will be in Pakistan until September 7, also said that her country was ready to join a multi-billion-dollar project to build a gas pipeline to transport Iran's natural gas to India and Pakistan.

Pakistan has invited Russia to join the 2,500-kilometer (1,555 mile) pipeline project, and Russian natural gas giant Gazprom showed interest in the offer when the company's chief executive, Alexei Miller, met with Pakistani President Pervez Musharraf last October. The project is set to get under way in mid-2007.

Danilova also said Russia was interested in building thermo-power and hydropower plants in Pakistan, which has a population of about 148 million.

"In this sector, we have presence in countries neighboring Pakistan, and now intend to enter this market too," Danilova said.

The delegation head said the governments of the two countries had agreed to set up a commission for trade and economic cooperation in 2000.

"But the commission has not been formed, and therefore the visit of our delegation is virtually the first event in the past six years designed to consider bilateral economic potential comprehensively," she said.

Danilova said her delegation, including officials from the Foreign and Economic Development and Trade ministries, had already met with Pakistani diplomats, and would also talk to representatives of other top ministries and leading companies in the country.

The Russian official added that Pakistan was ready to cooperate in telecommunications, in particular, using Russian spacecraft for communication purposes, geological surveying and to provide early warning of natural disasters. About 80,000 people died in an earthquake that hit Pakistan last year.

Danilova also said Russia was interested in exporting agricultural equipment to Pakistan. "We had contacts in this area in Soviet times, and now we are set to revive them," she said, adding that Pakistan also needed Russian railroad cars, fertilizers and automobiles.

"A joint venture has been opened to assemble [Russia's] Kamaz trucks in Pakistan," she said. "A total of 200 trucks have already been made, and it is only the beginning."

She also said her delegation planned to discuss the legal aspect of further relations, including guarantees for Russian investors.

Pakistan has also proposed signing an agreement on a free trade zone but Danilova said that Russia was considering the idea.

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