Australia, Russia look to boost trade

Canberra and Moscow have had a frank discussion about the sale of Australian uranium
to Russia as the two countries explore ways to boost two-way trade.
Trade Minister Simon Crean discussed the issue of possible nuclear sales when he
visited Russia with a delegation of senior business executives, who are looking to
make further inroads into the vast Russian market.
Mr Crean and Russian Agriculture Minister Aleksey Gordeyev co-chaired a meeting of
the Australia-Russia Joint Commission on Trade and Economic Co-operation, a working
group which has had a 13-year hiatus.
"It was a good opportunity to reconnect at the political level," Mr Crean told AAP.
The government believes there are substantial opportunities for Australian companies
willing to put the necessary effort into the Russian market.
"There is huge potential to strengthen the relationship," Mr Crean said.
"It has been underdone for the past 13 years and there is huge opportunity for us.
"It's a tough market, I don't deny that, but what you've got to do is establish the
political contacts and identify ... where they can benefit from opening trade and
investment flows."
Some of the industries looking to take advantage of the new focus on Russia include
financial services, agriculture and infrastructure, as well as the more traditional
mining and energy sectors.
One commodity Russia is keen to get access to is Australian uranium.
The Howard government struck a deal - estimated to be worth about $1 billion - with
Moscow last year to sell uranium to Russia on the proviso it be used for civilian
purposes under strict safeguards.
In September, the federal parliament's Joint Standing Committee on Treaties
recommended the government delay the deal until Australia can be certain Russia will
meet its obligations under the nuclear non-proliferation treaty.
The government is yet to respond to the report.
Mr Crean said he had explained to his Russian counterpart the government's need to
consider the treaty report.
"We made that clear to the Russians and they understood that," he said.
"(Any agreement) will have to have regard to our bilateral relationship and also to
relevant international events.
"We had a good, frank discussion about all of that and as I say, I think they
understand our position clearly. We didn't shirk the issue, we dealt with and that's
what a mature relationship should be able to do."