Russia, Egypt to work out technical regulation issues to give Russian cos access to procurements - minister
CAIRO. Sept 17 (Interfax) - Russia and Egypt have agreed on all the conditions for the launch of the Russian Industrial Zone (RIZ) in the Suez Canal Economic Zone, including a 49-year lease term for the land, Deputy Industry and Trade Minister Roman Chekushov said after a Russian delegation's visit to Cairo.
Now one of the key areas for cooperation will be to ensure guaranteed demand for the products of Russian businesses in Egypt, he said.
"We discussed issues related to technical regulation so that our companies can have unconditional access to the market, obtain the necessary certificates and participate in tenders," Chekushov said.
"We will work on ensuring that our companies understand demand for the product they plan to produce even before making the investment decision. This is why very active b2b and b2g negotiations with potential buyers of our products that may be made in the RIZ were held today as part of the business mission," Chekushov said.
Deputy Prime Minister Alexei Overchuk, who led the Russian delegation, said earlier that the RIZ is expected to open by 2030.
"In the course of this year we agreed absolutely all the conditions for the location of production facilities on the territory of Egypt with the Egyptian side. The zone will be located in the city of Ain Sokhna. That's the Gulf of Suez of the Red Sea, the southern part of the Suez Canal," Chekushov said, adding that the terms for using the land parcel, including a preferential tax and customs regime, have been set for 49 years.
He said the business mission to Cairo included representatives of more than 30 Russian companies.
"We've already determined the priority sectors for placement on the territory of the industrial zone. First of all, we're working on creating production facilities in the mechanical engineering sector. Of course, the Egyptian side is interested in attracting our technologies in the area of transport engineering. This is automotive engineering, it's enterprises that manufacture rolling stock, railway equipment," Chekushov said.
"Of course, we're also considering manufacturers in the chemical and petrochemical industry, since this sector's products are in high demand in Egypt and in the whole of the African continent... Our competencies are sought-after in the pharmaceuticals industry, in manufacturing of medical products and medical equipment," Chekushov said.
He recalled that participation in the RIZ and Made in Egypt status for products provide the opportunity for duty-free trade with more than 70 countries in Africa and beyond with which Egypt has preferential trade agreements.
