Negotiations on the establishment of the industrial zone of the Russian Federation in Egypt suspended after the collapse of the A321

CAIRO, November 22. /Corr. Dean Drunk/. Negotiations between Russia and Egypt on the establishment of an industrial zone in the Suez canal suspended after the crash of the Russian aircraft A321 in the sky over the Sinai Peninsula on October 31. About this informed the head of the office for industrial development Ismail Gaber.

“Russia decided on the venue – East of Port said, he said. But the negotiation process is temporarily suspended due to the termination of visits in connection with the recent events, but it will be resumed in the near future, because Russia has shown full interest in the project.”

August 12, 2014 the presidents of Russia and Egypt Vladimir Putin and Abdel Fattah al-Sisi agreed in Sochi about the establishment of a Russian industrial zone in Egypt to implement the project of the new Suez canal and the introduction of a simplified mode of access of Egyptian goods to the Russian market. According to experts, this component of the project “New Suez canal” and a possible Egypt’s conclusion of an agreement on free trade zone with the Customs Union will allow to increase national income by 5-8% and will contribute to the promotion of Egyptian products in the global market. These projects will open the possibility to create thousands of new jobs, the lack of which is one of the main problems of the economy of Egypt.

The main section of the new Suez canal was opened in August of this year. Around the new arteries on the area of 76 thousand sq km, according to the plans of the Egyptian authorities, should be built in industrial zone, including ship-building and ship repair yards, plants for the production of containers and Assembly halls etc., which will give the Egyptians about a million new jobs.

Until the last moment the negotiations between Russia and Egypt was actively conducted at the Ministerial level. In particular, the concept for this project based on the needs of the market of Egypt and other middle Eastern and African countries. For December was scheduled the next meeting of the bilateral intergovernmental Commission. By the time the entire project should be completed in the stage of elaboration. After that, the parties should sign a Memorandum of understanding and the roadmap for its implementation.