Mounir Fakhry Abdel-Nour. Minister for Industry and Foreign Trade Mounir Fakhry Abdel-Nour (Photo: Ahram )
Egypt is considering opening a Russian industrial zone for the manufacture of agriculture equipment, a partnership that would help Egypt meet its domestic demands and allow for surplus machinery to be exported.
The industrial zone would also build grain silos, a benefit for both countries, which rely heavily on farming, said the website of the Egyptian ministry of industry, foreign trade and investment.
Also, Russia said that it would take responsibility for the development of the Egyptian Iron & Steel factory in the south Cairo district of Helwan – the biggest company in Egypt's public sector and currently in a state of deterioration after a downturn in profits.
The company reported huge losses in 2010 and 2011. Net losses were close to LE900 million ($130 million) during the financial year that ended in June 2013.
Similarly, Russia has pledged to upgrade other iconic manufacturing plants in Egypt, such as Nasr Car Manufacturing Company, the Aluminum Complex in Upper Egypt and the power station of the High Dam in Aswan.
On Wednesday, Egypt's minister of industry, foreign trade and investment Mounir Fakhry Abdel-Nour wrapped up a three-day visit to Moscow in which he and his Russian counterpart agreed to create a free trade zone with Russia, Belarus and Kazakhstan.
The free trade zone would exempt the countries from customary tariffs and, Abdel-Nour says, help both countries with their exports – Egypt with fruits and vegetables, and Russia with wheat.
Egypt is already the largest importer of Russian wheat, responsible for one fifth of the country's wheat exports so far in 2013/14. Egypt bought 2.6 million tonnes of Russian wheat between 1 July 2013 and the end of February, Reuters reported.
Abdel-Nour said that Egypt seeks to raise the trade volume between the two countries to reach LE35 billion ($5 billion). According to an article published by Ahram Weekly in December 2013, trade exchange between Egypt and Russia reached LE25 billion ($3.6 billion) in 2012.
Russian exports to the Egyptian market that year amounted to LE23 billion ($3.3 billion), compared to LE19.6 billion ($2.82 billion) in 2011, while Egypt’s exports to the Russian market were worth only LE2.1 billion ($300 million), less than 3.5 percent of Egypt’s total foreign trade.
Russian investments in Egypt currently stand at no more than $66 million.
Cairo has turned to Moscow for arms talks after Washington cut back part of its military assistance to its regional ally in response to a crackdown by Egypt's interim authorities against supporters of deposed president Mohamed Morsi.
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