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Russia and Egypt sign agreement on creation of Russian industrial zone in Egypt

The zone’s full launch is planned in 2050

MOSCOW, May 23. /TASS/. Russia and Egypt signed an agreement on the creation of the Russian industrial zone in Egypt, a TASS correspondent reported from the signing ceremony.

The document was signed as part of the Russian-Egyptian intergovernmental commission by Industry and Trade Minister Denis Manturov and his Egyptian counterpart Tarek Kabil.

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In February of 2016, Russia and Egypt signed a memorandum of understanding for the creation of a Russian industrial zone near the Suez Canal. Under the memorandum, the industrial zone, which will offer favorable treatment and preferences for Russian resident companies, will cover an area of 2 million square meters in the east of Port Said. Russian carmakers, petrochemical enterprises, energy and medical companies are expected to locate their production facilities within the zone.

The implementation period of the Russian industrial zone project is expected to be 30 years and will be broken down into three stages.

The zone’s full launch is planned in 2050. Investments in the projects were estimated at about $7 billion. Besides Russian companies, several large international funds showed interest in the project.

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