Russia is willing to take part in establishing an industrial zone in the New Suez Canal project. In 2014, Russian president Vladimir Putin and Egypt’s Abdel Fattah al-Sisi agreed to create a Russian industrial zone in Egypt as part of the implementation of the New Suez Canal mega project.
In 2015 Egypt inaugurated the New Suez Canal, a 37-kilometer waterway dropping to a depth of 24 meters and running parallel with the existing 145-year-old Suez Canal.
The project attracted $8.5 billion in six days and is expected to produce $12.3 billion in revenues each year by 2023, which will more than double the canal’s current revenue intake. The vessel traffic is also expected to increase by about 50 percent, which will take the daily transit volume to 97 from 49.
Egypt announced the modernization of the Suez Canal originally, it was planned to complete the work in three years, but later was reduced to 12 months. The new Suez Canal planned to include a huge range of services, as well as several industrial parks, including Russian, Chinese and Italian.
Russian delegation visited Egypt to sign the Russian Industrial Zone in Egypt agreements back in Jan 2016 consisted of representatives from 60 companies.
Russia plans to build an industrial park on the Suez canal as part of Egyptian plan to develop the canal zone into an international industrial area. Here’s all you need to know about the project:
1- The agreement was made in 2014 between President AbdelFattah Al-Sisi and Russian President Vladimir Putin, however the Memoranda of Understanding wasn’t signed until February 2016.
2- The Russian Industrial Zone in Egypt is planned to be 2 million square meters in the east special Economic Zone of Port said. It is planned to establish an Assembly of Russian trucks, agricultural tractors, chemicals, concrete products.
3- The industrial park will be established with $4.6 billion worth of investments, this is the preliminary estimation offered by the Russian side.
4- The zone is expected to generate at least $11.6 billion revenues and more than 70,000 jobs.
5- Almost 60 Russian companies are taking part in the project, mostly private companies including GAZ, Gazprom Neft, Kamaz, UAZ, Transmashholding, Tatneft, InterRAO among others.
6- The first stage of the project is due to start in 2018 and cover more than 80 hectares.
7- The project is expected to be finalized and fully functional by 2035.
8- The Industrial zone is planned to offer low taxes for Russian companies that are part of the zone, with reports about 0 sales tax.
9- The project is considered a kick start for further Russian expansion in Africa and the Middle East regions, further strengthening the bond between Egypt and Russia.
10- The Russian zone should be the first of several zones to be established around the Suez Canal, with plans already underway for Chinese and Italian industrial parks.
The Russian industrial zone may start to function in the Suez Canal area in February 2017. Russia plans to invest in the creation of an industrial zone in the area of Port said in Egypt, $ 4.6 billion until 2035. Reported on behalf of the Ministry of industry and trade of the Russian Federation presentations, available “Ribbon.”.