Seoul said on Friday that it has started free trade negotiations with Russia in the service and investment areas.

The Ministry of Trade, Industry and Energy said that Minister Yoo Myung-hee and her Russian counterpart, Maxim Oreshkin, announced the official launch of free trade agreement(FTA) talks in Moscow on Thursday.

The announcement comes nearly a year to the day after the two countries agreed to begin discussions on a bilateral free trade deal in the service and investment sectors during a summit last June.

Earlier this month, the country launched similar negotiations with the Philippines, and also agreed to maintain current commitments on free trade with the U.K. regardless of the outcome of its divorce from the European Union, set to occur later this year.

The trade ministry said that the recent moves will reduce South Korea’s heavy trade reliance on the U.S. and China by diversifying its trade portfolio.

It added that the Russia FTA talks align with Seoul's “New Northern Policy” that centers on boosting economic and diplomatic ties with Russia and Central Asia.