Russia and Egypt have signed an agreement transferring a plot of land for a future Russian industrial zone, according to Anton Alikhanov, the head of the Russian Ministry of Industry and Trade.
"Today, the so-called usufruct agreement was signed, granting long-term rights to use the land. The contract sets out the commercial conditions for both the transfer and use of this area between a newly established management company registered in Egypt just a few days ago," Alikhanov said at the sidelines of the 15th meeting of the Russian-Egyptian intergovernmental commission, as quoted by RIA Novosti.
The long-term land use agreement for the planned industrial zone was signed by a Russian real estate developer and the Suez Canal Economic Zone Authority.
The minister clarified that a three-year grace period begins in 2025, during which the land can be used for construction work without paying rent.
"That's why we are counting on a successful presentation of the Russian industrial zone project to potential Russian investors at the VEB.RF site," he added.
According to Alikhanov, Egypt has over 70 free trade agreements with countries in the neighboring regions. This will make local production especially profitable, as it provides access to African and Middle Eastern markets.
"Now that we have signed the key documents for the project, we will be doing everything possible to quickly move on to signing concrete agreements for the construction of factories and the subsequent launch of production," the minister concluded.
Earlier in May, during a meeting with Egyptian President Abdel Fattah el-Sisi, Russian President Vladimir Putin described Cairo as one of Moscow's key partners on the African continent.
