Egyptian-Based Russian Industrial Area Showcased by VEB.RF and REC at Expo 2020 Dubai
The VEB.RF Group’s delegation made a presentation about the Russian industrial area (RIA) in Egypt at Expo 2020 Dubai today. Supervised by the Russian Ministry of Industry and Trade, the project is to offer a unique opportunity for Russian companies to enter the Arab and African markets. According to Daniil Algulyan, Deputy Chairman of the Management Board, VEB.RF, construction in the RIA is scheduled to begin as early as May 2022. The RIA is situated at the town of Ain Sokhna near the Suez Canal.
“The Russian industrial area in Egypt is basically a public-private partnership project,” Daniil Algulyan said. “Our countries work together to help businesses to set up their projects. The RIA is designed to make it easier for Russian companies to adapt themselves to the local environment during their entry into the Middle Eastern and North African markets.”
The 50-hectare site is only a few hundreds of metres from the Red Sea. The RIA is located near a railway that can be used to transport feedstock and finished products, a desalination plant and a power station. The RIA will potentially be expanded to 525 hectares; the second site will be built at Port Said. The two sites are to operate on the same conditions.
RIA residents will be able to repatriate 100% of their profits, have 100% shareholdings in their businesses, and import duty-free components, materials and parts for use within the Russian industrial area. In the case of products exported from the RIA to the other territories of Egypt, they will be exempt from tax with the exception of assemblies and components manufactured abroad. Russia will build on-site accommodation for RIA residents. They will also be provided with access to a full range of products offered by development institutions: loans from EXIMBANK OF RUSSIA, insurance plans from EXIAR, performance bonds from VEB.RF etc.
“Russia and Egypt are equally interested in this form of cooperation. The ongoing project is a win-win for everyone,” added Veronika Nikishina, CEO, Russian Export Center (REC, part of the VEB.RF Group). “This will be good for both Russia and Egypt as well as for countries across the region because products will be cheaper and more affordable. This will promote foreign investment in the region, create new jobs and develop infrastructure around the Suez Canal transit route. The RIA brings added impetus to Russia’s economic ties with Egypt, and we’ll be able to see qualitative changes in trade between the two countries.”
VEB.RF and EDB to Provide Financing for Russian Equipment Supplied for Renewable Energy in Kazakhstan
VEB.RF will lend 1.282 billion roubles to the Eurasian Development Bank (EDB) to promote renewable energy in Kazakhstan. The credit line agreement was signed by Daniyar Imangaliyev, Vice Chairman of the Management Board, EDB, and Aleksey Ternavskiy, Managing Director, VEB.RF, during the Eurasian Congress.
The project uses Russian-made equipment, thus also boosting economic integration.
“Green technology transfer from Russia to Kazakhstan with the direct involvement of VEB.RF is an example of how the EDB is laying out a new integration agenda. Since 2017, the Bank has provided financing for renewable energy projects worth over 540 million US dollars and totalling about 500 MW. In 2020, the Council of the Bank approved a programme for 600 million US dollars in financing for 500 MW renewable energy projects in 2020–2024. This can increase planned renewable energy financing to over 1 billion US dollars by 2024,” Daniyar Imangaliyev said.
“Support for high-technology exports is a key area of VEB.RF’s activities. In 2021 alone, VEB.RF entered into loan agreements for more than 1.5 billion US dollars in this area. Their stable export potential means that Russian goods and services are highly competitive. Our main focus now is on ESG criteria for project selection, so we are optimistic about the future prospects of joint green integration projects with the EDB, our good and reliable partner,” Aleksey Ternavskiy said.