USD 22 bn Russian Industrial Zone taking shape
Welcome, Comrades: Russian delegation outlines USD 22 bn in investment in new industrial zone. A framework agreement that will set a timeline for the Russian Industrial Zone (RIZ) in East Port Said is set to be signed in June and will include 17 projects with total investment of USD 22 bn, First Deputy Minister of Industry and Trade Gleb Nikitin said at a press conference we attended yesterday. Nikitin is heading a Russian business delegation on a two-day visit. On the agenda is a visit today to China’s TEDA Industrial Zone in Ain Sokhna. Key takeaways:
- A land plot has yet to be allocated — contrary to previous reports. “There are still unresolved issues,” Nikitin said, but stressed he is sure both sides will come to an agreement. Project developer Technopolis Moscow is looking for something on the order of 2,000 hectares, company CEO Igor Ischenko said.
- Priority industries for the Russian Industrial Zone include car manufacturing, shipbuilding, metalworks, agricultural equipment manufacturing, and medical technology.
- The project will be executed in three phases and is set to be completed over 30 years, Ischenko said.
- The RIZ will eventually have its own management company.
- Two-thirds of the zone will be industrial, with the rest consisting of residential areas and amenities, Daniel Dendra from anOtherArchitect told us.
- Egyptian banks and other financial institutions are welcome to participate in the financing package for the zone, which has yet to reach financial close, said Russian Export Center CEO Petr Fradkov.
Shahid Law Firm is advising the Russian delegation.