Русский
Vladimir Putin has met with Abdel Fattah el-Sisi, the President of Egypt at the BRICS Summit in Kazan.
This is what they had to say:
Putin:
“Thank you for attending the BRICS forum. The fact that you are taking part in it having completed the formal accession procedure during Russia’s chairmanship of this group sends quite a powerful signal. Russia has been paying special attention to expanding its friendly ties with Egypt, its long-standing and reliable partner. Last year, we marked the 80th anniversary of diplomatic relations between our two countries.
We have been promoting our multifaceted bilateral relations across various domains based on the Treaty on Comprehensive Partnership and Strategic Cooperation, and have generated steady momentum in terms of our trade and economic relations. Egypt accounts for almost one-third of the Russia-Africa trade. In 2023, it increased by 16.4%, and this growth accelerated into 2024.
We continue carrying out major joint projects, including the construction of the El Dabaa Nuclear Power Plant and a Russian industrial zone. The effort to draft a free trade agreement between the Arab Republic and the Eurasian Economic Union is underway.
We have been maintaining regular and meaningful political dialogue at various levels. By the way, we are looking forward to seeing your foreign minister in Sochi on November 9 and 10 at the first ministerial conference of the Russia-Africa Partnership Forum. It is our hope that you will issue the relevant instructions.
Our interparliamentary cooperation is growing stronger. We are paying considerable attention to developing our ties in education. We have allocated 318 places for your students for the 2024–2025 academic year.
Russia and Egypt have similar approaches to many current global issues, and we appreciate our cooperation at UN platforms.“
Fattah el-Sisi:
“Allow me to begin by expressing my joy at meeting with you again. I would like to say that we greatly appreciate Russia’s assistance to Egypt during its accession to BRICS. We also set a high value on the events that Russia held during its chairmanship. We were interested in attending all these events. I am delighted to be able to attend this forum with Egypt as a full member of this group.
Egypt holds our interaction and cooperation in both the bilateral format and at multilateral platforms in the highest regard. We support the expansion of BRICS, which is becoming a platform for combating the negative effects of developments on the international stage.
We are also aware of the breakthrough BRICS is making in the interests of all parties regardless of pressure, in particular in trade and especially trade between Egypt and Russia.
In this context, I would like to emphasize the importance of making settlements in our national currencies. This will protect our interests and the interests of developing countries worldwide.
We highly appreciate the dynamic development of our bilateral relations since the signing of a strategic partnership agreement in 2018, especially when it comes to the implementation of large-scale projects. You mentioned the construction of the El Dabaa Nuclear Power Plant and a Russian industrial zone in the Suez Canal area. Our Parliament is making the final steps towards ratifying the agreement on the establishment of that zone, which will help prevent the negative consequences of sanctions and promote the zone’s operation in the interests of our states and BRICS countries.”
Analysis & Implications
Bilateral trade ties between Russia and Egypt are buoyant and are on track to record annual volumes of US$45 billion based on the most recent monthly stats. In 2024 trade can be expected to reach about US$38 billion. That is up from US$26.2 billion in 2023. Russia is an important ally in Egyptian food security with its top exports being wheat and other grains. Egypt exports mainly agricultural products to Russia. The two countries also have a developing tourism trade, with Russians Egypt’s second largest tourism source after Germany. Russians spent about US$6.6 billion in Egypt in the first half of 2024.
There appear to be some developments with the proposed Russian industrial zone at Port Said, near the Suez Canal, which has been delayed for several years. Assuming the Egyptian government ratifies the project, the zone will prove immensely useful to both Egypt and Russia. It will provide bonded facilities, enabling Russian products such as vehicles to be manufactured at Port Said, adding value and using less expensive Egyptian labour, plus the reduced tax burden such zones provide, will enable investors to use the zone to either re-export back to Russia (or other EAEU countries) or place them onto the domestic African market. Egypt is a member of the African Continental Free Trade Agreement.
With Egypt close to finalising a Free Trade Agreement with the Eurasian Economic Union, the immediate future for Russia-Egypt trade looks very positive.
Further Reading
