Russia’s Unofficial Relations
with Taiwan
Sergey VRADIY

Taiwan is one of the most dynamic centers of financial and economic
development in the Asia-Pacific region. It plays an important role in theeconomy of Pacific Asia as well as in the world.1
From the point of view of potential possibilities for the developmentof business, scientific, and technical cooperation, Taiwan could beconsidered as a prospective partner for Russian business in Southeast Asia.
It is defined by the island’s high degree of import dependence for most
raw material resources and by its leading role in producing a number of
items in the manufacturing industry.
This article will briefly review the contemporary history of Russia’s
unofficial relations with Taiwan. It will also analyze the current status andpresume the possibility of future prospects of bilateral economic and traderelations.
The strategic significance of Taiwan is defined mostly by its
advantageous position on the South China and East China Sea routes aswell as its proximity to the Philippines. For decades, the Guomindang
government, which found refuge on the island after the establishment of
the PRC in 1949, has been taken by the West as a bulwark against the
spread of communism in Asia. Thus, the island has always had great1

Per capita GNP in Taiwan in 2005 was $15,659 (twentieth in the world), and its GNP
was $355 billion. External trade in 2005 was $371 billion (sixteenth in the world), with
export being $189.4 billion and import, $181.6 billion. Foreign exchange reserves in 2005
were $253.3 billion. That is third place in the world after Japan and PRC. Source:
Directorate General of Budget, Accounting and Statistics, the Republic of China.

- 219 -SERGEY VRADIY

political significance. Being equally distant from Korea and Vietnam,
countries that saw some hard fighting during the Cold War, Taiwan was
the base for military operations against the PRC and pro-communist
forces in Indonesia and Indochina.
The major migration to Taiwan from the continent started in theseventeenth century. Considering it to be one of the remote territories of
the Celestial Empire, the Chinese officials paid little attention to thesituation on the island. The indifferent attitude started to change after the
Sino-French War of 1884–1885, when the Qing Dynasty realized that theisland could be used as a base for foreign intervention and influence on
the continent. After the war, Taiwan was given the status of independent
province (the island having been part of Fujian Province). A hero of the
Sino-French War, General Liu Mingquan, was appointed the island’s firstgovernor.
As a result of the Shimonoseki Treaty in 1895, which ended the SinoJapanese War, Taiwan was transferred to Japan, which was promptly
made a Japanese colony. Foreign consulates resumed their activities on
Formosa,2 including Russian activities in 1896. The first Russian consul
was the German native Paul Shabert.
Franklin Roosevelt, Winston Churchill, and Chiang Kaishek agreed
to return Taiwan to China at the Cairo Conference of 1943. Stalin
recognized this agreement during the Teheran Conference. The official
return of Taiwan to China was finally approved at the Potsdam
Conference in July 1945, and in September of the same year, Formosa
was returned under Chinese jurisdiction.
Chiang Kaishek arrived on the island along with one and half million
troops in June 1949. In September 1950, the Soviet UN representative
Iakov Malik demanded the inclusion of Taiwan’s status into the Security
Council agenda and insisted on inviting the PRC delegation. During thediscussion, the Soviet delegation maintained that since Taiwan was anintegral part of China, all American troops located on the island andadjacent territories ought to be withdrawn.

2
Formosa, the name of island popular in English literature, means “magnificent island.”The island was given its name by the Portuguese who first discovered it in the sixteenth
century. The island is located about a hundred kilometers to the east of continental China
and has a territory of approximately fourteen thousand square kilometers.

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RUSSIA’S UNOFFICIAL RELATIONS WITH TAIWAN

After the end of the Korean War in 1954, the US signed a security
treaty with the government of the Republic of China, which included aclause providing for American participation in military action in case of
confrontation with mainland China. The Soviet Union minister of foreign
affairs in a statement called the treaty a “rude violation of international
agreements, sovereignty, and the territorial integrity of the PRC.”
All contact between the USSR and the Republic of China defined by
the Treaty on Friendship and Cooperation of 1945 was broken off. The
announcement of the breakup was made on October 3, 1949 after theSoviet Union became the first country to recognize the PRC on October 1.
Although there have been some weak tendencies towards change in thestatus quo since the late 1950s, up to this day, the Russian Federation has
had no official relations with Taiwan. It is worth mentioning that the
USSR had always adhered to the policy of “one China” but insisted on apolitical solution to deal with the crisis, unlike some Beijing leaders who
were considering military action in 1954 and 1958. Possibly, it was one of
the reasons for the cooling of Sino-Soviet relations at the end of the 1950s.
When in September 1954 bombardment of the Taiwan-adjacentislands provoked the first of the three Matszu-Amoi crises, the Soviet
Union in Nikita Khrushchev’s statement officially announced its supportof the PRC. At the same time, Foreign Minister Viacheslav Molotov
expressed concern that the regional conflict would turn into a major war,
while accusing the US of provoking the conflict.
Not long before the crisis in 1954, Taiwan’s coast guard captured theSoviet oil tanker “Tuapse,” which was on course from Odessa to
Vladivostok. Forty-nine crew members were arrested, four of whom later
managed to escape and returned home. A year later, twenty-nine othercrewmembers were released and returned to the USSR. The rest opted tostay in Taiwan; later, nine of them would eventually immigrate to the US
and Germany. By the end of 1958, seven crewmembers were still in
Taiwan, and the tanker itself stayed in Gaoxiong Port where it remains tothis day.3
3

In 1958, a film called “An Extraordinary Incident” was made in the USSR that was
based on a true story. The black and white movie is full of ideological stamps of socialist
propaganda; however, it remains popular to this day. Despite socialist stereotypes, the main
theme of the film is the courage of the people who were deliberately sacrificed for
ideological reasons. In 1959, the movie was a major hit with 47.5 million viewers in the
country.

- 221 -SERGEY VRADIY

In the summer of 1958, the bombardment of Matszu and Amoi
Islands was resumed (the so-called “second crisis”). Unlike in 1954, when
Soviet diplomats commented on the situation relying mostly on the PRC
media, in 1958, their attention to the issue was more thorough. In addition
to the PRC media, the Hong Kong and Taiwanese press were also taken
into account. A September 5, 1958 article in Pravda reported that attacks
on the PRC would be regarded as attacks on the USSR with all thesubsequent countermeasures.
The 1960s witnessed some substantial changes. The American
military presence on the island was diminished. Although in the 1950s,
Taiwan enjoyed the second place in the amount of American economic
and military support, in the 1960s, this financial flow was considerably
cut down.
Changes in US policy towards Taiwan can be attributed to thefollowing. Firstly, in the hope of weakening its archrival, the USSR,
America started to work with the PRC with the intention of deepening thecontradictions between the two former socialist allies. Secondly, in searchof a way out of the mess in Vietnam, the US was hoping to attract China
as a negotiator between them and the North Vietnamese government.
Finally, and perhaps most importantly, American businesses soon realized
the endless possibilities of the Chinese market. The chance of getting
closer to China was worth sacrificing its former ally.
The official position of the USSR remained the same—the PRC
government is the representative of China in the international arena, not
the Chiang Kaishek clique that took over the island, lawfully belonging to
the PRC.
Unofficial contact between the USSR and Taiwan started at the endof the 1960s, after the tendency toward a US-PRC rapprochement had
become obvious.4 It is well-known that the visits by Richard Nixon andHenry Kissinger resulted in the signing of the so-called Shanghai
communiqué in 1972 when it was declared that the US “acknowledges
that all Chinese on either side of the Taiwan Strait maintain there is but
one China and that Taiwan is a part of China.” Meanwhile, Taiwan hoped4

It is worth mentioning the visit of the Soviet citizen Victor Lui in October 1968, whoworked with London’s Evening Post. He managed to meet with Minister of Defence Jiang
Jingguo, Chiang Kaishek’s son successor. In 1969, the deputy minister of education of
Taiwan visited the USSR.

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RUSSIA’S UNOFFICIAL RELATIONS WITH TAIWAN

that a Soviet-Taiwanese rapprochement would prevent the rising numberof Sino-American contacts. It is possible that the USSR in its turnconsidered that restoration of relations with Taiwan would help to slow
down the aggravation in Soviet-Chinese relations. Taiwan was eager tocompromise since after the weakening of its relations with the US, it had
little to lose. The Soviet Union, however, was very careful in its policy
towards Taiwan, trading with it via Hong Kong, Japan, West Germany,and its East European allies.
The Soviet leadership was probably worried that a reestablishment ofofficial relations with Taiwan would bring too many problems to its
relations with the PRC and could undermine its image. Therefore, most of
the contacts were conducted through third countries on anongovernmental level.
Although diplomatic, economic, and military relations with the PRC
were interrupted for some time, the Soviet Union was unwilling tocompletely forget its former ally and embrace Taiwan. Each time Taiwan
suggested establishing trade relations, the USSR showed restraint for
ideological reasons and refrained from direct contact.
Taiwan was also held back by its traditionally suspicious view ofSoviet policies, as well as by possible disapproval from the American side.
Also, the Taiwanese government was afraid of losing the trust of the anticommunist countries in the case of establishing relations with the USSR.
After the Carter administration reestablished Sino-American relations
from January 1, 1979, the Taiwanese leaders had nothing left to do but totry to diminish their dependence on the US and search for a more flexible
foreign policy.
When the reforms started in the USSR in the 1980s, Taiwan, one of
the “Asian dragons” was often used as an example of a successful market
economy.
In 1990, Taiwan abolished restrictions on direct trade andinvestments in the USSR, stimulating cooperation in the timber industry
and fishery while supporting cultural and technological exchange.
After the breakup of the USSR, Russia became its official successor
internationally. In September 1992, Boris Yeltsin signed the “Relations
between the Russian Federation and Taiwan” decree that at present is thelegal base for further development of their relations. The decree provided
for the creation of an unofficial economic and culture coordinationcommission. Its Moscow representative office was opened in 1993

- 223 -SERGEY VRADIY(Taipei-Moscow Economic and Culture Coordination Commission). The
Taiwanese representative office was established in 1996 in Taipei(Moscow-Taipei Economic and Culture Coordination Commission). The
offices carry the function of a communication channel, support cultural
exchange and economic and trade relations, and provide information
services. The same presidential decree stated that there would be nochange in Russia’s position on the Taiwan issue. Only unofficial contacts
take place between Russia and Taiwan, and all activity is conducted bynongovernmental organizations, private companies, and trade associations.
Since 1991, the Moscow-based Taipei World Trade Center has beenin operation, as well as the representation of the TAITRA, the Taiwan
External Trade Development Council.
In September 1997, Moscow and Taipei signed an agreement on air
communication. In January 1998, a protocol for sea transport was signed,
and in 2002, a protocol for cooperation in small and medium-sizedbusinesses.
At the beginning of the cooperation in 1987, the volume of trade
between the USSR and Taiwan was a mere $7.6 million. Some years later,
however, there was some improvement.
Table 1 is the trade data for the last decade.
The data prove the development of bilateral trade and economic
relations, although the process is far from stable. For instance, there wassome decrease in 1998, 2001, and 2005, but the overall trend is positive.
The year 2004 proved to be a peak year in trade: $2.9 billion.
In 2005, the trade volume was $2.7 billion, while Taiwan’s export to
Russia showed significant growth (19.3 percent). According to thestatistics, the volume of trade in 2005 was 6.9 percent lower than in 2004.
The decrease was mostly caused by a fall in steel prices on the world
market. Taiwanese exports grew because of the increase in the trade of
Taiwanese notebook PCs, cosmetics, etc. In total, the increase in
Taiwanese exports to Russia in 2005 was $83 million.
In the first quarter of 2006, the trade volume was $759.6 million,
which is 29.2 percent less than in the same period in 2005.5

5

http://cus93.trade.gov.tw/english/FSCE/FSC0011E.ASP.

- 224 -

1,205,084,164

1,409,296,630

981,518,681

1,291,077,336

1,565,685,445

865,901,098

1,179,762,679

1,601,280,827

2,901,701,798

2,701,183,012

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

-6.91081.21135.72936.247-44.695

21.27031.539-30.354

16.946-33.125%
change(same
period)512,238,539

429,076,900

301,993,466

252,715,993

262,374,800

186,074,314

107,837,229

137,536,002

172,496,494

141,241,167

Amount(US$)

Export19.38242.08219.499-3.68141.00572.551-21.593-20.267

22.129-18.841%change(same
period)Source: Directorate General of Customs, Ministry of Finance, Republic of China
http://cus93.trade.gov.tw/english/FSCE/FSC0011E.ASP

Amount(US$)

Year

Total Trade Volume

Table 1. Taiwan’s Trade with Russia (1996–2005)

90.306-11.473

2,188,944,473

40.15353.605-56.254

16.59640.197-31.761

16.258-34.652%
change(same
period)2,472,624,898

1,299,287,361

927,046,686

603,526,298

1,379,611,131

1,183,240,107

843,982,679

1,236,800,136

1,063,842,997

Amount(US$)

Import-1,676,705,934-2,043,547,998-997,293,895-674,330,693-341,151,498-1,193,536,817-1,075,402,878-706,446,677-1,064,303,642-922,601,830

Amount(US$)-17.951104.90947.89497.663-71.41710.98552.227-33.624

15.359-36.544%change(same
period)Trade Surplus (Deficit)

Table 2. Statistics on Taiwan’s Imports from Russia
Item2004/01–
2004/12

2005/01–
2005/12

Total

2,472,624,898

2,188,944,473-11.473

Iron and steel

1,775,752,060

1,424,633,783-19.773

Organic chemicals

74,707,758

177,111,988

137.073

Nickel and articles thereof

149,813,303

171,249,231

14.308Mineral fuels, mineral oils andproducts of their distillation;
bituminous substances; mineralwaxes

195,149,714

150,582,261-22.838

Aluminium and articles thereof

111,077,616

91,967,710-17.204

Other base metals; cement;
articles thereof

39,903,137

64,868,409

62.565Paper and paperboard; articles
of paper pulp, of paper or of
paperboard

14,054,304

23,079,574

64.217

Electrical machinery andequipment and parts thereof;
sound recorders andreproducers, television image
and sound recorders andreproducers, and parts andaccessories of such articles

18,275,075

14,655,682-19.805

Miscellaneous chemical
products

9,927,283

14,439,513

45.453

Rubber and articles thereof

11,773,441

11,756,837-0.141

Source: Directorate General of Customs, Ministry of Finance, Republic of China
http://cus93.trade.gov.tw/english/FSCE/FSC0011E.ASP- 226 -GROWTHRATE (%)

Table 3. Statistics on Taiwan’s Exports to Russia
Item2004/01–
2004/12

2005/01–
2005/12

Total

429,076,900

512,238,539

19.382

Nuclear reactors, boiler
machinery and mechanicalappliances; parts thereof

182,513,721

203,256,345

11.365

Electrical machinery andequipment and parts thereof;
sound recorders andreproducers, television image
and sound recorders andreproducers, and parts andaccessories of such articles

57,128,935

79,138,888

38.527

Plastics and articles thereof

34,757,311

45,227,732

30.124

Articles of iron or steel

34,867,352

37,390,240

7.236

Vehicles other than railway or
tramway rolling stock, and parts
and accessories thereof

17,979,376

20,520,954

14.136Iron and steel

18,349,235

15,068,017-17.882

Essential oils and resinoids;
perfumery, cosmetics or toilet
preparations

11,270,165

14,337,291

27.215Tools, implements, cutlery,spoons and forks, of base metal;parts thereof of base metal

10,964,309

12,114,268

10.488

Furniture; bedding, mattresses,
mattress supports, cushions andsimilar stuffed furnishings;
lamps and lighting fittings, notelsewhere specified or included;
illuminated signs, illuminants

4,595,635

10,949,978138.269

Organic chemicals

4,530,621

10,378,919

129.084

Source: Directorate General of Customs, Ministry of Finance, Republic of China
http://cus93.trade.gov.tw/english/FSCE/FSC0011E.ASP- 227 -GROWTHRATE(%)SERGEY VRADIY

As can be seen from the data, Russia keeps a positive balance in its
trade relations with Taiwan thanks to crude oil, cast iron and steel,
nonferrous metals, petrochemical products, ferroalloys, coking coal,timber, and chemical fertilizers. Russia imports mostly electronics andelectronic parts, computers and computer parts, and home appliances.
The negative trade balance ($1.68 billion in 2005) issue is taken
seriously in Taiwan. However, the prevalence of natural resources in
Russian exports and industrial products in Taiwan are considered in
Taiwan to be logical at the present stage of relations.6 To improve thesituation, it is recommended to increase the export of Taiwanese products
to Russia.
The relatively low level of Taiwanese exports to Russia can be
explained by several factors. Firstly, the price of Taiwanese products isstill quite high for most Russian consumers, the rest prefer high-end
European, American, or Japanese products. Secondly, there are difficulties
and complexities involved in bank transfers, which are mostly conducted
through third countries.7 Thirdly, there is insufficient guarantee from thegovernment for foreign investors. Also, the high levels of organized crimein Russia, along with the low levels of security, further impede progress.
As a result, foreign business, including the Taiwanese, prefers to invest in
more stable and predictable regions.8 It is also worth mentioning that
Russia imports many products from the PRC, some of which are in fact
made at Taiwanese-owned operations. However, this trade is officiallyconsidered in the statistics as part of the Russian-PRC trade.
Despite the overall growth of the trade and economic relations
between Russia and Taiwan, proportionally, it is extremely low comparedto the volumes of their overall foreign trade. For instance, in 2005,
6

According to the Taiwan representative in Moscow Chen Rongjie, since Taiwan imports
the resources that the island lacks, the trade deficit can be considered positive. See Chen
Rongjie, “Republic of China Delegation to Russia,” Liberty Times, November 22, 2002.
7
Taiwanese banks are careful with letters of credit issued by Russian banks. The
payments are conducted with bank transfers or in cash. Among the banks that deal with
Taiwanese business are Gazprom Bank, International Industrial Bank, Uralsib Bank,
Globex Bank, Alfa Bank, and Guta Bank.
8
Pavel M. Ivanov, "Nekotorye problemy pazvitiia possiisko-taivan‘skikh otnoshenii na
sovremennom etape," Possiisko-taivan‘skie otnosheniia i ikh rol‘ v razvitii AziatskoTikhookeanskogo regiona: Sb. dokladov konferentsii v Institute stran Azii i Afriki(Moscow: Izdatel‘skii Tsentr ISAA pri MGU, 1997), 48–49.

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RUSSIA’S UNOFFICIAL RELATIONS WITH TAIWAN

Taiwanese exports to Russia accounted for only 0.27 percent of its overall
volume; Russia imports accounted for only 1.2 percent of the whole.
The volume of mutual investments is also low. In Russia, there arearound ten Taiwanese midsize companies operating in trade, service,information, restaurant, and tourism businesses. In St. Petersburg, there
are three Taiwanese companies dealing with sea freight, the tea trade, andtourism. Two companies deal with fishery in the Far East. The rest of the
Taiwanese companies are located in Moscow; these are representatives ofcomputer companies supplying their products to the Russian market.
In 2002, seven Russian companies operated in Taiwan in the areas ofinternational trade, information services, and sea freight.
Besides the above-mentioned reasons, the low level of investment by
the Taiwanese can be explained by the high level of inflation andinefficient procedures for the privatization of state property. Meanwhile,
Taiwanese business is trying to establish direct contacts with some of
Russia’s privately owned businesses, avoiding the inefficient government
structures.
Representatives of trade circles often exchange visits and participate
in various of trade shows and conferences.
In September 2002, the third investment forum of the Asia-Pacific
Economic Cooperation (APEC) was held in Vladivostok. A delegation oftwenty-nine people from Taiwan took part in it. It was led by Zhang
Junxiong, former prime minister of Taiwan, then secretary general of theruling Democratic Progressive Party. Besides him, other members of thedelegation included the Minister of Transportation Lin Lingsan, thechairman of the Labor Committee Chen Jiu, and officials from the
Ministry of Economics and the Committee on Agriculture. According to
the media, it was one of the highest levels of presentation of the
Taiwanese government in Russia in recent memory.
To promote mutual contacts, the Taiwanese often invite Russianpolitical and governmental dignitaries to visit the island. Among those
who have are former USSR president Mikhail Gorbachev, former mayorof Moscow Gavrill Popov, and chairman of the Liberal Democratic Partyof Russia Vladimir Zhirinovskii, to name but a few. In 1990, Vladimir
Putin, then vice mayor of St. Petersburg, met with the future president of
Taiwan Chen Shuibian, then mayor of Taipei.
In 2003, the Taiwan-Russian Association was established on theisland. The former Prime Minister Zhang Junxiong became the chairman- 229 -SERGEY VRADIY

of this organization, which proves the high level of interest of the
Taiwanese in further developing cooperation with Russia.
As for the future prospects of the relations, the Taiwanese side
constantly brings up the subject of direct air flights, which would reducethe distance and make the contacts more intensive.
Trade and economic relations between Russia and Taiwan can begreatly expanded. Taiwanese president Chen Shuibian considers that toachieve this, it is necessary to sign a number of bilateral agreements, suchas an agreement on the protection of investments, a no double taxationagreement, and a customs clearance agreement. Taiwanese businessmen
hope to have the same conditions in Russia as given to foreign investors in
the PRC and Southeast Asia. Moreover, they hope for simpler formalities
in the Russian administration system.
For further development of the relations, Taiwan could invite Russian
specialists. Besides semiconductor technologies, Taiwan conducts a lot ofwork on biotechnologies, the creation of digital archives,
telecommunications, optical electronics, etc.
Many people see good possibilities in buying Russian resources, firstof all, oil. Whilst Russia is very rich in resources, Taiwan is extremely
lacking in them.
At present, the Russian share of Taiwan’s operations with Europe
was a mere 3.6 percent. To develop the relations, according to Russian andTaiwanese businessmen, it is necessary to create a legal basis, sign
agreements providing privileges for joint projects, and establish
correspondent relations between banks. Also, international organizations
such as the WTO (of which Taiwan became a member not long ago andwhich Russia is planning to join) could facilitate the process.
To realize these plans, the participation of competent Russian
governmental structures becomes necessary. However, the absence ofgovernmental agreements between Russia and Taiwan is a great obstacle
for further development of the relations. It is proposed that economic
cooperation can be developed in the absence of governmental cooperation.
In fact, despite there being no diplomatic relations between Beijing andTaipei, the volume of trade over the Taiwan Strait accounts for billions ofdollars.9 Taiwan does not have diplomatic relations with the US or Japan.
9

According to the analysis of leading economists, the overall volume of Taiwanese
investment in continental China is around $70 billion. This is comparable to the sum- 230 -

RUSSIA’S UNOFFICIAL RELATIONS WITH TAIWAN

However, the trade volume between them is many times higher than thatbetween Taiwan and Russia.
Perspectives on Russian-Taiwanese relations drawn by scholars aremostly based on assumptions and are evenly applicable to the economy of
the Primorie region. Now, let us take a look at some of them that havesignificance to the economy of Primor’e.
Opening of a direct air connection between Taipei and Vladivostok
could facilitate the expansion of contacts. The first couple of flights wereconducted at the end of April—beginning of May 2001. The direct airconnection was supposed to have great importance for tourism
development.
Vladivostok is a convenient and potentially important transit point for
Taiwanese going to the northeastern provinces of China, North Korea, orother Russian cities in the Far East and Siberia and even Moscow.
However, first, there was a delay in the organization of flights and later,
the whole project came to a halt for an indefinite time. Vladivostok Avia,
the nongovernmental company that has the license on air transportation to
Taiwan, remains cautions about restoring direct flights, if compared to its
Korean rivals. 10 Even now, some technical issues remain unresolved.
Besides, the Chinese position on the Taiwan issue remains a strong
political factor.
To facilitate this project, there was a plan to relocate part of theinvestments from China and Southeast Asia to the Far East of Russia, an
area rich in resources. The foreign minister of Taiwan stated in 2002 that
Taiwan was ready to invest in the development of natural resources of the
Far East if “the necessary conditions were created, including financial
route control.”invested by the US in China. Although politically, mainland China is opposed to Taiwan,
the Taiwanese economy has become increasingly tied to the Chinese economy. The main
reasons for this are the cheap labor force and huge potential of continental China’s market.
(China’s Ministry of Foreign Trade and Economic Cooperation; US Commerce
Department; Morgan Stanley; Goldman Sachs, in Robyn Meredith, “Giant SlurpingSound,” Forbes Global, October 28, 2002, 34–36).
10
In July 2001, the former Korean prime minister visited Taipei. Among other questions,the issue of reestablishing direct Seoul-Taipei flights that were closed after a diplomatic
breakup in 1992 was discussed. The Koreans hope to send tourists to Taiwan because
many are now afraid to visit Southeast Asia after a sudden rash of highly publicized
terrorist attacks. Before the breakup, up to half a million Koreans visited Taiwan annually.

- 231 -SERGEY VRADIY

Among other prospective areas of bilateral economic cooperation is
Taiwan’s participation in the development, transportation, and utilizing ofenergy resources located in the Far East, Siberia, and Sakhalin. Taiwanese
governmental and commercial organizations are interested in thedevelopment of the Sakhalin oil and gas resources. Sakhalin is close to
Taiwan, and the transportation expenses would therefore be low, and the
supply itself could be more stable than that from the Middle East andother distant regions.
The importance of Primorie’s location is also defined by the terminalof the Trans-Siberian Railway, the world’s longest railway. The railway
could give Taiwanese business an extra opportunity for economic
development of Siberia, Russia, and Eastern Europe. Besides, Taiwan
could be an investor and benefactor of the project connecting the TransSiberian and Trans-Korean Railways.11
In August 2003, the trade port in Vladivostok signed a friendshipagreement with Taiwan’s Gaoxiong Port, which has the same agreementswith ports in the US, Middle East, and Europe. The port in Vladivostok
became the fourteenth in this list and the first in Russia. Gaoxiong Port isone of the five biggest in the world and the biggest in Taiwan. It isconnected with Russia through supplies of steel.
Cooperation between the Russian Far East and Taiwan could also be
profitable in the fishery and replenishing of fishing resources, production
and processing of timber, and the development of business.
Searching for cutting-edge technologies, Taiwan could use Russianscientific and technological findings in the areas where Russia still holds
leading positions. These would be space monitoring to prevent natural
disasters and man-made disasters, minimizing the consequences of suchdisasters, ship building, and biotechnologies.
The scientists of the Far Eastern Branch of the Russian Academy of
Science (FEBRAS) could share their views on processing mineral
resources, dealing with agricultural waste, producing superclean organicand nonorganic materials, water purification technologies, newinformation technologies (including satellite monitoring), biotechnologies,
and many others. At that, because the FEBRAS has a hard time putting
11

The fact that the transportation of a standard container by sea from Southeast Asia to
Europe costs $1,500–1,800 and takes a month when transportation from Busan via Siberia
costs only $600 and takes 13 days proves the expedience of the project.

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RUSSIA’S UNOFFICIAL RELATIONS WITH TAIWAN

these projects into practice and because Taiwan has great experience inselling its products on the world market, there would be new opportunities
for the creation of joint ventures, research centers, techno parks, etc.
At present, neither side sees the other as an enemy, which gives more
opportunities for broadening economic ties, trade, and mutual
understanding.
An analysis of bilateral trade provides considerable evidence of thecompatibility and complementarity of the Russian and Taiwanese
economies. At the same time, existing possibilities for the development oftrade-economic relations are being insufficiently realized.
In its relations with Taiwan, Russia does not recognize the island’s
independence, considering it to be an integral part of China. The
significance of trade and economic relations is recognized by both sides
and remains at an unofficial, nongovernmental level.
For Russia, relations with Taiwan do not necessarily seem to berelated to its direct interests. Indeed, the security and stability of its sharedborder with the PRC appear more decisive, although Russia and Taiwan
have been gradually evolving dialogue relations in economic cooperation.
Many countries, although not having diplomatic relations with
Taiwan, maintain close economic ties with Taiwanese companies, which is
profitable for both sides.
While maintaining a firm position on the Taiwan issue,12 Russia
started developing relations with it in various fields. However, for anumber of reasons, cooperation with Taiwan is limited to Moscow and St.
Petersburg. Primor’e, although located close to Taiwan, has failed tocapitalize on any of its geographical advantages. Meanwhile, Taiwan
proved its importance to the region after quickly recovering from theworld financial crisis.
In conclusion, Russia and Taiwan have a good chance of developing
bilateral trade, investment, and technology cooperation. Although the path
12

Moscow has confirmed its position many times. “We believe that there is only one
China and Taiwan is an integral part of it. We oppose the independence of Taiwan in any
form and do not recognize the concepts of ‘Two Chinas’ or ‘One China and One Taiwan.’This viewpoint is firmly fixed in the Russian-Chinese Treaty on Good Neighborly
Relations and Cooperation of July 16, 2001, as well as in a number of bilateral documents,
and will not be changed,” according to a statement made by the Russian MOF Information
Department on February 6, 2006 in response to the stated intention of the Taiwanesepresident to abolish the Council on National Unity.

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to a good level of cooperation could be difficult and take some time, it isin the interests of both sides.

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