Algeria Applies To Join The Shanghai Cooperation Organization

Algeria and SCO

Russian Foreign Minister Sergey Lavrov says Algeria will become a member of the Shanghai Cooperation Organisation (SCO) after obtaining dialogue partner and subsequent observer status, after Algiers applied to become a dialogue partner of the SCO on Tuesday (May 21).

The SCO, which accounts for some 20% of global GDP, was founded in 2001 by China, Kyrgyzstan, Kazakhstan, Russia, Tajikistan, and Uzbekistan. Iran became the newest member of the organization last year, after India and Pakistan had joined in 2017.

Currently, 14 countries, with Egypt being the only African state, hold SCO dialogue partner status, allowing them to participate in the organization’s specialized events at the invitation of its members.

Algeria is one of Russia’s long-standing African partners and has been working to diversify its economy while also strengthening ties with countries such as China.

The oil-rich north African country is among several that South African Foreign Affairs Minister Naledi Pandor said last summer had also formally applied to join BRICS – a bloc consisting of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates.

Last month, Algiers and Moscow signed a cooperation agreement to combat transnational organized crime, terrorism, extremism, and corruption. Both governments have also committed to strengthening cooperation in areas such as trade, energy, investment, culture, and humanitarian aid.

Algeria is one of the world’s top importers of wheat (US$2.7 billion in 2022), and relies on Russian grains. While France used to be Algeria’s main supplier, Russia has now overtaken it. In 2022, Algeria quadrupled its imports of Russian wheat.

Russian-Algerian cooperation in the agricultural sector has also increased considerably, including sales of beef and dairy products. Algeria is currently working to expand economic cooperation with Russia, as it did with Turkey, China, and Italy, to other sectors as part of its efforts to reform its economy and attract investment.

Growing Russian investment has flowed into sectors including energy, pharmaceuticals, transport, logistics and infrastructure. The volume of bilateral trade increased by almost 70% in 2022, according to the Russian Minister of Economic Development, Maxim Reshetnikov.

Both Algeria and Russia are working to expand bilateral investment flows, aspiring to do so within the framework of BRICS, which Algeria has applied to join.

Current Russia-Algeria bilateral trade is worth about US$1.65 billion with the vast majority of that being Russian exports to Algeria, although that, in light of enhanced energy cooperation, may change. Currently, Russian exports have focused on Navigation Equipment, Soybean Oil and Broadcasting Accessories. Algerian exports to Russia are commonly Fruits and Dried Fruits. The country is also likely to see an expanded volume of Russian tourists. This current industrial make- up though can be expected to change significantly due to the energy sectoral commonalities. 

Further Reading

Russia-Algeria 2024 Trade & Development Dynamics

Russia’s trade with Algeria is extensively covered in our 2024 Russia’s Pivot To Asia guide, which is a complimentary download. It can be accessed in English here and in Russian here.

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