Putin seeks energy arms deals on a diplomatic trip to Vietnam

Vladimir Putin arrived in Vietnam, where the President welcomed him To Lam. Vietnam and Russia share longstanding ties. As noted by Bloomberg, the visit is not only diplomatic but also sets the stage for investments by Russian giants Rosatom and Novatek.

Putin arrived on Thursday morning, Eastern Time, in the Vietnamese capital of Hanoi. According to Bloomberg, Vietnam views Russia as a strategic counterbalance to both Beijing and Washington.

During his visit, Putin will hold talks with top Vietnamese officials, including Nguyen Phu Trong, the General Secretary of the ruling Communist Party of Vietnam.

On his arrival in Hanoi, Putin expressed "appreciation for Vietnam's balanced stance on the crisis in Ukraine" in an article published in the organ of the ruling Communist Party of Vietnam. He also noted that Russia and Vietnam share "similar positions on the situation in the Asia-Pacific region."

According to Reuters, Vietnam, which pursues a neutral foreign policy known as "bamboo diplomacy," has refrained from condemning the Russian invasion of Ukraine, a stance the West views negatively. Unlike North Korea, Vietnam aims to maintain good relations with the United States and the European Union.

Cooperation with Russia is crucial for Vietnam, even though Russia is not its main trading partner. As Bloomberg points out, Vietnam's exports to Russia last year amounted to just under $2 billion, compared to $97 billion to the USA. However, Moscow still has much to offer.

Vietnam is a significant focus for Russian gas ambitions, particularly liquefied natural gas (LNG). Before his visit, Vladimir Putin revealed in an interview with the Communist Party's national newspaper "Nhan Dan" that the Russian company Novatek PJSC plans projects related to LNG in Vietnam, but he did not provide details.

Putin also mentioned establishing an energy and nuclear technology center with the support of the Russian state nuclear conglomerate Rosatom. Additionally, the company intends to develop wind energy in Vietnam.

Vietnam has historically developed its military through contracts with Russia, purchasing aircraft and submarines. However, as Bloomberg explains, it has to hold off on further purchases due to concerns about secondary Western sanctions.

Putin highlighted that nearly 60% of trade transactions between the two countries are conducted in rubles and Vietnamese dong. As Bloomberg points out, Russia relies on alternative payment systems since its banks are cut off from the international SWIFT payment system.