The decision was conveyed during a phone call between Minister of Foreign Affairs, International Cooperation, and Egyptian Expatriates Badr Abdelatty and Russian Minister of Industry and Trade Anton Alikhanov.
FM Abdelatty described the selection as a “pivotal step” towards activating the zone, attracting Russian investments, and beginning its effective operation in the coming period.
The move follows talks Abdelatty held with his Russian counterpart and senior representatives of major Russian companies during a visit to Moscow in April 2026.
Minister Alikhanov praised Egypt’s efforts to establish and operate the industrial zone, including legislative measures and the incentives and facilities offered to investors.
He reaffirmed Russia’s commitment to launching operations in the zone and expanding bilateral investment and trade cooperation.
The Russian Industrial Zone was first agreed in May 2018 under a 50-year framework intended to host Russian manufacturers producing for the Egyptian market and exporting to Africa and the Middle East.
The original plan envisaged a 5.25-million-square-metre zone in East Port Said, with projected investments of $7 billion and the creation of about 35,000 jobs.
In 2021, the two countries reached a preliminary agreement to expand or reconfigure the project across East Port Said and Ain Sokhna.
The proposed first phase included one million square metres in East Port Said and 500,000 square metres in Ain Sokhna, with a mix of heavy and light industries.
In September 2025, the two sides signed a new long-term usufruct agreement granting Russia the right to operate the zone.
Russian Deputy Prime Minister Alexei Overchuk said regulatory procedures had been completed and that the project had entered the implementation phase, with preparatory and construction work expected to begin in Ain Sokhna.
Momentum intensified in 2026 when President Abdel-Fattah El-Sisi invited companies from Russia’s industrialized Republic of Tatarstan to participate in the zone, particularly in petrochemicals, heavy machinery, automotive manufacturing, and agricultural processing.
During Abdelatty's April visit to Moscow, he said Egypt hoped to develop the zone into a global manufacturing and export hub, while Russian Foreign Minister Sergei Lavrov highlighted the progress made on the project.
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