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Wednesday, 17 November 2021

Russia unveils RIZ plans

Russia unveiled the master plan for its industrial zone to Suez Canal Economic Zone officials during an official visit to Egypt on 14-16 November, Russian news agency Tass reports. Russian Industry and Trade Ministry official Roman Chekushov told the news organization that Egyptian officials “highly appreciated” the plans revealed by the delegation, which consisted of representatives of the ministry, state development finance institution VEB.RF, and Russian companies.

Russia and Egypt agreed the main terms of the project earlier this year, paving the way for work to begin on the site at the beginning of 2022. The two sides have settled the lease period, the size of the land plot, the rent price and the deadline for site preparation.

We’re not clear on most of the terms, though we know that Egypt has to allow Russian companies to sell 100% of their locally-made products in the Egyptian market. Egypt is offering companies low-cost rents and preferential tax and energy tariffs to come over, but officials have yet to make the details public.

We’re not going to be seeing a full-sized RIZ for a long time: The project isn’t expected to be completed for another 13 years.

But companies could start appearing next year: If everything goes to plan, the first companies could start operations as soon as 2022.

Some 50 companies will set up shop in the first two or three years: Leading Russian companies in the engineering, chemicals, metallurgy, pharma industries are interested in setting up shop in the zone, Chekushov said, without naming names.

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