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Russia, Egypt to sign memorandum on Russian industrial zone in Egypt soon

The Russian delegation will be led by Minister of Industry and Trade Denis Manturov

CAIRO, January 24. /TASS/. Russia and Egypt will sign a memorandum of understanding on the establishment of a Russian industrial zone in the area of the Suez Canal during a regular session of the intergovernmental commission due to be held on January 31-February 2 in Cairo, well-informed sources in Cairo told TASS on Sunday.

The Russian delegation will be led by Minister of Industry and Trade Denis Manturov. It will include representatives from some 60 leading Russian companies interested in energy and transport infrastructure projects in Egypt.

Apart from that, the Russian Direct Investment Fund is expected to sign a memorandum with a number of Egyptian commercial banks under the project for the establishment of Egypt’s five-billion-U.S. dollar investment fund with participation of the Russian Direct Investment Fund and the United Arab Emirates. The would-be fund is expected to invest in the construction of subways, a railway line, a logistics center and a tourist hub.

Apart from that, the Russian Direct Investment Fund is interested in co-investment with UAE partners of a project for the construction of grain elevators in Egypt. The Fund’s CEO, Kirill Dmitriyev, said earlier Egypt was losing about 30% of grain. "That is why the subject of grain elevators is very topical. It will help the agrarian sector to be more efficient," he said, adding that the Fund was interested in transport projects to localize Russian car production in Egypt.

Presidents Vladimir Putin of Russia and Abdel Fattah al-Sisi of Egypt agreed in Sochi in August 2014 on the establishment of a Russian industrial zone in Egypt to implement the New Suez Canal project and on a simplified procedure for Egyptian-made goods on the Russian market. According to expert estimates, this component of the New Suez Canal project and possible signing a free trade zone between Egypt and the Customs Union will make it possible to increase national incomes by five to eight percent and will help promote Egyptian goods on the global market. The implementation of these projects will make it possible to create thousands of new jobs to help Egypt cope with unemployment.

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