More than $30B Russian deals expected during Putin’s visit

CAIRO – 11 December 2017: Russian President Vladimir Putin arrived in Cairo on Monday, in his second trip to Egypt within two years. Many issues are expected to be discussed by the two counties’ leaders.

Egypt and Russia have strong relations in various fields; politics, security and economy which is expected to be the milestone of discussions between the counterparts.

During the visit, Putin will discuss with Egyptian President Abdel Fatah al-Sisi bilateral relations, trade, and Middle Eastern issues, the Kremlin said last week.

The Egyptian business community keeps an eye on the visit as three key issues are expected to be discussed; the Dabaa nuclear power plant, the Russian Industrial City located in Suez Canal Economic Zone (SCZone) and, the long-awaited decision of direct flights’ return between the two countries.

Three senior sources told Reuters on Sunday that Egypt and Moscow will sign the contract of al- Dabaa nuclear power plant during Putin’s visit to Cairo.

Egyptian Foreign Minister Sameh Shoukry told Russia Today in an interview on Saturday that “they have completed several stages” of the plant and “soon” it will be finished.

Moscow and Cairo signed an agreement in 2015 for Russia to build a nuclear power plant in Egypt, with Russia extending a loan to Egypt to cover the cost of construction which is worth $25 billion.

The nuclear plant is expected to not just cover the country’s energy needs, but to produce a surplus which can be exported, the sources told Reuters on Sunday.

On the other hand and for those who consider investing in the SCZone, Reuters reported that the new Russian industrial city is scheduled to be signed within the visit with total investments expected at $7 billion.

The 5 million square meter industrial zone will be located east of Port Said in the new Suez Canal Economic Zone, a mega project initiated by President Abdel Fatah al-Sisi. The plan aims to create an international hub for manufacturers with easy access for exporting goods to African and European markets.

Egyptian Minister of Industry and Trade Tarek Kabil said in late October that Egypt will sign the contract for the Russian industrial city by end of 2017.

The return of direct flights between Egypt and Moscow was earlier many times discussed and is expected to be concluded during Putin’s visit on Monday.

The passenger flights between Russia and Egypt were suspended in November 2015 after a Russian passenger airliner exploded and disintegrated over the Sinai Peninsula, killing all 224 people on board.

The flight suspending affects almost all business divisions in Egypt, however tourism is the big loser as Russians accounted for a large proportion of tourists to Egypt, especially to the Red Sea resort of Sharm El-Sheikh.

Russia continues checking security measures in Egyptian airports.

Trade between Egypt and Russia rose to be about $2.5 billion in the first seven months of the 2017 from about $2.2 billion in the same period a year earlier, a statement issued by the Trade Ministry indicated in late October.

Egypt’s exports to Russia reached $387.9 million in the first seven months of the year compared with $304.6 million in the same period last year, a 27.3-percent increase, it added.

Total Russian investments in the Egyptian market are valued at about $62.8 million across 417 projects in various fields, the statement said.