Russia eyes $7 Billion investments in Suez Canal project

The industrial zone that Russia is developing in the Suez Canal Economic Zone is expected to attract $7 billion in new investments, said Moscow's ambassador to Egypt Georgy Borisenko.

The zone will cover 5.25 square kilometers and provide 35,000 direct and indirect job opportunities, with 90 percent to be filled by Egyptians.

According to Borisenko, Russian companies have expressed interest to invest in the industrial zone, which would provide special advantages on export and import taxes and customs duties, labor costs, and Suez Canal passage fees.

There's also the possibility of transferring all of the profits and revenues without an Egyptian partner.

The project will require 12 years to implement with a 50-year usufruct agreement.

The Russian Export Center and the Russian Central Bank will finance the project.

Major Russian companies that operate in Egypt include oil companies Rosneft and Lukoil, and automobile company Lada.

Russian companies are eyeing to increase with Egyptian business people in the local market, which Borisenko described as very attractive for investment.

There is hope for expanding the volume of Russian investments in Egypt, especially in the fields of oil and gas discovery, mechanical engineering, food industries, and agriculture.

The trade between the two countries amounted to $6.2 billion in 2019, making Russia one of Egypt's top 10 trade partners.