Russian trade delegation talks expansion of industrial zone

CAIRO- 1 March 2017: A Russian Industrial delegation arrived in Cairo Wednesday to discuss establishing a Russian industrial zone in eastern Port Said city, north of the Suez Canal, the Russian Ministry of Industry and Trade said in a statement Wednesday.

“Russia's First Deputy Minister of Industry and Trade Gleb Nikitin and heads of large Russian companies will pay a working visit to Cairo … where they will discuss the terms of establishing a Russian industrial zone in Egypt, planned to be located in the area of east Port Said city," reported Sputnik, citing the statement.

An official from the Egyptian Ministry of Trade and Industry told Youm7 Wednesday that the 35-member delegation will discuss the possibility of expanding the a piece of land allocated for the industrial zone during their two-day visit.

The official, who spoke on condition of anonymity as he was not authorized to brief the media, added that the Russian side seeks to expand the allocated area from 800 square km to 20,000 square km, noting the delegation will present the expansion proposal in a meeting with the Egyptian side on Wednesday.

The Russian proposal aims to include projects such as setting up factories for manufacturing tractors, petrochemicals and pharmaceutical products, the official added.

In November, Russian Minister of Trade and Industry Denis Manturov announced that Egypt was ready to expand the area, adding that the agreement could be finished in the first quarter of 2017 and construction could start in 2018, Russia Today reported on Nov. 25.

Secretary General of the Board of Directors of the General Authority for the Suez Canal Economic Zone (SCZone) Nasser Fouad told Youm7 the Russian side will create companies for providing the vessels crossing through Suez Canal with logistic support.

He added that the projects will be financed per an agreement between the Russian Direct Investment Fund and certain Egyptian banks. Fouad added that the zone projects would provide 80,000 jobs.

In February 2016, Egyptian Minister of Trade Tarek Kabil and Manturov signed a memorandum of understanding to establish the Russian Industrial Zone.

During his to Moscow in August 2014, Egyptian President Abdel Fatah al-Sisi and his Russian counterpart Vladimir Putin reached an agreement to create the industrial zone.