Back to the complete issue
Tuesday, 27 December 2016

Russia

If ties with Beijing are perhaps the most economically critical in the longer term, Egypt’s relationship with Russia could prove to be its most immediately important, with tourism and security cooperation being the lynchpin of the relationship. Egypt had seen success on the later. The two countries held joint anti-terror drills, while Russia (alongside France) positioned to become one of Egypt’s biggest arms suppliers by providing a warship and an R-32 missile corvette. Russia also gave a tacit nod of approval to Egypt acquiring two Mistral class helicopter carriers from France, with the vessels having originally been fitted-out to Russian requirements.

Cooperation extended on the economic front, with Russia expanding its industrial zone, and Rosneft buying a 30% stake in the Zohr natural gas field, a move Russian media is speculating might lead to a gas pipeline to export to Europe. The Presidency has also been assuring that the USD 29 bn Dabaa nuclear power plant contracts will be signed in 2017.

The relationship was complicated by a few hiccups. Cairo’s flip-flopping on ergot contamination in wheat shipments led to Russia imposing a brief ban on fruit and vegetables from Egypt. But the key issue remains the end of the Russian flight ban which followed the Metrojet disaster and continues to cripple the tourism industry. Egypt raced to meet Russia’s stringent security measures, which were met with a combination of praise and non-committal on restoring flights and prodding to do more. Restoring the tourism industry and its sustainable revenues meant Egypt had taken a practical view in prioritizing its relationship with Russia over the short-term aid from Saudi Arabia. And it appears to be working: as the Russian President took note that Egypt beefing its security could see regular flights restored in the near future. We will continue to see Egypt buddying up with Russia in 2017 regardless of the effect it could have on other ties.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.