Egypt to establish free-trade zone with Russian-led Eurasian Economic Union

Egypt will join Russia-led Eurasian free trade zone, which includes Russia, Armenia, Belarus, and Kazakhstan, Egyptian President Abdel al-Sisi announced at a joint news conference with Vladimir Putin.

“We have reached an agreement to establish a free trade zone between Egypt and the Eurasian Economic Union," Egyptian President said, quoted by Russia Today.

Trade between Russia and Egypt compiled $4.5 billion in 2014, a more than 80 percent increase on the year before, said Russian President.

With this deal in effect, it will be easier for Egyptian products to reach the markets of Russia, Belarus, Kazakhstan, and Armenia, and vice-versa.

The two countries also agreed to create a Russian industrial zone near the Suez Canal. Russian businesses have stakes in more than 400 Egyptian companies.

Russia and Egypt will work jointly on new investment projects, especially in transport, manufacturing, and energy – both oil and nuclear.

Lukoil, Russia’s second largest oil company produces more than 16 percent of the oil coming from Egypt.

Russia will provide help to Egypt in developing nuclear power plants and train personnel to create a new nuclear power industry in the country.

Egypt’s tourist sector suffered greatly due to a downgrade in security in the wake of the ouster of President Hosni Mubarak in 2011 and is currently struggling to win back foreign visitors. And thus the country also wants to boost profits from Russian tourists.

Despite deteriorating economy in Russia, more than 3 million Russians traveled to Egypt for tourism in 2014.