New Zealand and Russia are talking turkey about the possibility of a free trade agreement.

Trade Minister Tim Groser met his Russian counterpart in Moscow on Monday.

The Minister says Russia has agreed to move towards a formal trade agreement with New Zealand, subject to preliminary talks. Mr. Groser says a deal with Russia, and its partners Belarus and Kazakhstan, is an opportunity for New Zealand to future-proof its relationship with an emerging economic powerhouse.

New Zealand exports to Russia have grown annually at 23% a year since 2000, and were worth $187 million last year.

Meantime, dairy giant Fonterra says $120 million of those exports  were for dairy exports, mostly butter and cheese.

New Zealand has the largest share of butter imported into Russia, last year supplying over 50% of Russia’s internationally imported butter.  Fonterra says it welcomes closer economic ties with the economic giant.