Vladimir Putin met with Abdullah Ahmad Badawi who arrived in Moscow for a four-day visit at the invitation of the Russian president in a year which marks 40 years of diplomatic ties.
"This year, we celebrate the 40th anniversary of diplomatic relations, and this fall a Malaysian astronaut will fly to the International Space Station (ISS)," Putin said.
Space
The first Malaysian astronaut, locally referred to as Angkasawan, is being trained in Russia for his flight in October. Doctor Sheikh Muszaphar Shukor Al Masrie will fly on the Russian Soyuz-TMA-11 spacecraft together with the next ISS mission.
"Malaysia is really happy that it has been allowed to join the space exploration project," Badawi said.
Defense sector
The space flight was part of a bilateral deal, which also includes Malaysia acquiring 18 Russian serial Su-30MKM Flanker-C fighters worth $900 million. Russia already delivered the first two fighters June 17, the Sukhoi aircraft manufacturer said.
The contract also stipulates construction of a maintenance center for the Russian aircraft in Malaysia, and Russia's contribution to the country's national space exploration program.
Energy
"Another successful area of cooperation is the oil and gas sector," the Malaysian premier said.
During the Asia Oil and Gas Conference in Kuala Lumpur in mid-June, Russian gas giant Gazprom [RTS: GAZP] and Malaysia's state oil and gas company Petronas signed a memorandum of understanding on possible joint projects worldwide in the gas value chain from upstream to downstream.
Gazprom, Petronas, and France's Total are also developing the second and third blocs of the energy-rich Southern Pars deposit in Iran.
Petronas also acquired $1.1 billion of Rosneft [RTS: ROSN] stock during the Russian state-oil company's share sale last summer.
"Investment cooperation is our priority, including in the oil and gas sector," Putin said. "Consistently developing partnership between Gazprom and Rosneft with Malaysian company Petronas is a good example."
Trade, business
Overall economic ties have been growing steadily in the past few years. "Malaysia is one of the leading trade partners for Russia in the Association of South East Asian Nations [ASEAN]," Putin said.
He said trade topped $1.1 billion last year and, according to Russian statistics, increased by another 62% in the first quarter of this year alone. But Putin confidently said the two countries had the potential to expand trade further to hit the $2 billion mark. "We are quite capable of increasing trade to at least $2 billion," he said.
Badawi concurred with Putin, and said the sides had discussed the need to sign an agreement on increasing, encouraging, and protecting investment, and on avoiding double taxation. He added that businesses played a crucial role in the process.
A Russian-Malaysian business forum is to be held during Badawi's visit to help diversify trade, expand mutual investment, and step up cooperation between the private sectors.
Russia and Malaysia have agreed to sign an agreement to form an intergovernmental commission and stimulate business cooperation.
"We have agreed to complete the work on a contractual basis and ... do all it takes to establish direct contacts between businesses in Russia and Malaysia," Putin said.
