TENDENCIES AND PROSPECTS OF CREATING FREE TRADE AREA BETWEEN RUSSIA AND ASEAN COUNTRIES
The paper is devoted to the challenge of formation of Free Trade Area between Russia and ASEAN. The author states the necessity of a diversification of foreign economic relations of Russia. The author speculates on the possibility of redistribution of trading and investment streams between Russia and Europe by redirecting them into Asia. The paper proves the possibility of creating FTA between Russia and South East Asia countries. The author describes potential for increasing trade between Russia and ASEAN. The paper contains some calculations based on gravitational model (in which intensity of trading streams is commensurated with distance between the states and GDP indicators) which prove that modern volumes of trade between the Russian Federation and such countries as Indonesia and Malaysia are considerably lower than sustainable level of long-term potential. The development of a new Free Trade Area could promote reaching this level through liberalization of commodity and investment streams.