Egypt-Russia economic deals

Why are two Russian Il-78 Midas tankers deployed to Egypt?

The presence of two Il-78M Midas tankers in Egypt fuels theories about past and future Russian Air Force missions across the world.

A photo taken at Cairo International airport on Oct. 29 proves the Russian have deployed two Il-78M Midas tankers to Egypt. The reason behind their presence in North Africa is still unclear.

There are chances that the Russians deployed the tankers to Egypt in support of the long range missions flown across northern Europe as far as the Atlantic off Portugal on both Oct. 30 and 31: most probably they were using the tankers to support the trip of the Tu-95 Bear strategic bombers, intercepted and escorted by several air forces including the Portuguese along their way, to the southern Atlantic.

One radio enthusiast on Twitter noted a message being relayed to Bort 94290 (IL-78M) and passing (Heading Easterly) waypoint EVIRA (East of Malta).

Then, according to Tom Hill, a radio enthusiast and reader of The Aviationist, the Tu-95MS and IL-78Ms were active in Voice and Morse Code.

The Russians still use quite a lot of Morse and especially for these extended out of area missions. They send the same short 3 figure tactical messages back to their control in Russia using Morse and Voice. Radio enthusiasts were busy logging the activity last week.

“I just copied the Morse. You can’t really get any info from the Morse as it is short encoded three figure groups. They send the same in Voice. The only thing different here was the IL-78s using the Bort number in voice for the air route over the Mediterranean. Morse Key fit on Tu-95MS radio operators station. On the HF radios you can see 8909 KHz USB set up for the voice transmissions. This is the frequency they use during the Summer,” Hill explained in an email to us.

Even though at least one of the two IL-78Ms (RF-94920) was heard passing a waypoint in the middle of the Mediterranean Sea, it’s still unclear whether it really refueled the Tu-95s that flew to the Atlantic Ocean in Portugal FIR (Flight Information Region), and back (remaining in international airspace).

Was it just a practice for future missions or perhaps the Russians are intending to route Tu-95MS Bear Hs into the Mediterranean?

If so, maybe we are going to see some shots of the Russian bombers as those taken by the Italian air force pilots during their Cold War intercepts.

The puzzle is also: how did the IL-78Ms get to Egypt? Did they deploy through the Gibraltar Straits or did they take the Iran, Iraq and Syria route? Possibly the Iranians were a bit twitchy about combat aircraft such as Tu-95s deploying but they allowed the tanker support?

http://defence-blog.com/?p=2069

Egyptian tourism minister: Russia, Egypt might use Russian currency in mutual settlements

Egypt Interested in Free Trade Zone With Eurasian Economic Union

Egyptian Ambassador to Russia Mohammed Badri said that Egypt would like to join the negotiations on the establishment of a free trade zone between Egypt and the Eurasian Economic Union.

MOSCOW, January 23 (Sputnik) — Egypt is interested in creating a free trade zone with the Eurasian Economic Union (EEU), the country's Ambassador to Russia Mohammed Badri said Friday.

"Egypt would like to join the negotiations on the establishment of a free trade zone between Egypt and the Eurasian Economic Union. Preliminary consultations are underway," the ambassador said at a press conference at news agency Rossiya Segodnya's press center in Moscow.

"I think that within a year the picture will become clearer and will contribute to the revitalization of our trading activities in the future," he added.

The ambassador also noted that his country hopes to develop deeper cooperation with Russia in a number of fields.

The Middle Eastern country views Russia as a reliable partner against a backdrop of cooling relations with the United States after the deposal of former President Mohamed Morsi. Against the backdrop sanctions imposed on Russia by the West over the events in Ukraine, Moscow's cooperation with Cairo is seen as promising.

Russia, Belarus and Kazakhstan signed a treaty to establish the EEU on May 29, 2014. Armenia joined the organization on October 10, while Kyrgyzstan signed its accession treaty on December 23.

The treaty replaced the Customs Union between Russia, Belarus and Kazakhstan and came into force on January 1, 2015.

The EEU guarantees the free flow of goods, services, capital and labor, in addition to a coordinated energy, industrial, agricultural and transport policy among its member states. The union’s ultimate objective is to establish a single economic market stretching from the European Union to China, serving over 170 million people.

Russia, Egypt to Drop USD, Use National Currencies in Bilateral Trade

Russia and Egypt might soon drop the US dollar as a currency in bilateral trade and switch to their national currencies in the settlement of accounts, Russian President Vladimir Putin said in an interview with the Egyptian daily newspaper Al-Ahram ahead of his Monday visit to the country.

The US nuclear power plant fleet will be compliant with the Nuclear Regulatory Commission's (NRC) new safety requirements by 2016, based on the lessons, learned from the Japanese Fukushima nuclear plant disaster in 2011.

MOSCOW (Sputnik) — It is "quite natural" that business circles in both Russia and Egypt have raised the issue of the advisability of using their respective national currencies for bilateral payments, Russian President Vladimir Putin has told the Egyptian daily newspaper Al-Ahram.

The President added that Russia already uses national currencies for trade with a number of CIS states, as well as China.

“This practice proves its worth; we are ready to adopt it in our relations with Egypt as well. This issue is being discussed in detail by the relevant agencies of both countries,” Putin told Al-Ahram.

Russia has recently been making an effort to switch to the use of national currencies in mutual payments with several countries including China, India, Thailand and Turkey. In December 2014, China and Russia launched swaps and forwards between the Yuan and the Rouble.

The benefits of mutual payments in national currencies include the absence of charges for the conversion of currencies, direct payments and higher transparency between banks.

"This issue is really being actively discussed, primarily because the tourist season will begin in Egypt soon. Evidently, the settlement of accounts in national currencies will contribute to creating more favorable conditions for millions of Russian citizens who spend their holidays annually in your country," Putin said.

Relations between Egypt and Russia are developing rapidly, in fields including trade, nuclear energy, space, tourism and agriculture, the Russian President summed up.

"Russian-Egyptian relations are developing rapidly. The volume of bilateral trade has increased significantly over the past years: in 2014, it increased by almost half compared to the previous year and amounted to more than $4.5 billion," the Russian President said, adding that there is potential to achieve even more impressive results.

According to Putin, Russia provides about 40 percent of the grain consumed in Egypt. In turn, Cairo exports large amounts of fruit and vegetables to Moscow.

Russia considers prospects in nuclear energy, the use of outer space and sharing of Russia's GLONASS satellite navigation system with Egypt "promising," according to the Russian President. Numerous Egyptian enterprises, including those in the fuel and energy sector, as well as the chemical and automotive industries, are interested in the Egyptian market.

The Russian President highlighted the popularity of Egypt with Russian tourists; more than 3 million Russians visited the country last year.

Egypt views Russia as a reliable partner against a backdrop of cooling relations with the United States after the deposal of former President Mohamed Morsi. Against the backdrop of sanctions imposed on Russia by the West over the events in Ukraine, Moscow's cooperation with Cairo is also seen as promising.

The Russian President is set to make an official visit to Egypt on February 9-10.

Read more: http://sputniknews.com/politics/20150209/1017981862.html#ixzz3RG5kb6k1

Russia, Egypt Sign LNG Supply Deal – Egyptian Minister

Russian energy giant Gazprom and Egypt's national gas company have signed a deal on the supply of liquefied natural gas (LNG) to Egypt, according to Egypt's industry, trade and investment minister.

CAIRO, February 9 (Sputnik) – Egypt's national gas company and Russian energy giant Gazprom have signed a deal on the supply of liquefied natural gas (LNG) to Egypt, the country's trade, industry and investment minister told RIA Novosti on Monday.

"The agreement was signed on Saturday between the Egyptian [state] gas company and Gazprom on the supply of LNG shipments annually for five years," Mounir Fakhry Abdel Nour said.

In December 2014, Egypt reached a deal on LNG imports from Algeria.

Egypt, which relies heavily on foreign gas, has experienced difficulties in securing imports, as it currently lacks an LNG processing plant. A floating storage and regasification unit, delivered by Norway's Hoegh LNG, is set to start operating in the country in March.

Egypt would welcome credit from Russia, but has not asked for it and will not pressure Moscow to provide it, Egypt's industry, trade and investment minister told RIA Novosti.

"We are currently undergoing a stage of great development, we have big projects, and we want to complete them as soon as possible. We welcome any credit that Russia could provide. But we will not pressure the Russian side, as the economic conditions in Russia are very difficult. We have not asked for credit," Mounir Fakhry Abdel Nour said.

Russian President Vladimir Putin is visiting Egypt on February 9-10 to discuss the situation in the Middle East and Northern Africa with his Egyptian counterpart.

Read more: http://sputniknews.com/business/20150209/1017999169.html#ixzz3RG6Bei6h

Trade, tourism & dumping dollars: Putin building bridges in Egypt

Ineresting
Egypt to join Russia-led Eurasian free trade zone

ahmedfire wrote:Ineresting
Egypt to join Russia-led Eurasian free trade zone

Sounds like good news, Egypt needs a strategic Seed Bank, as well as Food Bank with a minimum 10 million tons of grain kept at a refrigerated temperature. Egyptian grain/bread prices factors heavily in to how stable Egypt is. Russia should work a deal where the grain grown in the Eurasian Union should be sold to Egypt at a fraction of world market prices, to the point where grain/bread prices are cut by 50%.

magnumcromagnon wrote:

ahmedfire wrote:Ineresting
Egypt to join Russia-led Eurasian free trade zone

Sounds like good news, Egypt needs a strategic Seed Bank, as well as Food Bank with a minimum 10 million tons of grain kept at a refrigerated temperature. Egyptian grain/bread prices factors heavily in to how stable Egypt is. Russia should work a deal where the grain grown in the Eurasian Union should be sold to Egypt at a fraction of world market prices, to the point where grain/bread prices are cut by 50%.

that would be a good start. Sell it at lower than normal market price to help Egypt market. As well, this should be a good sign for Russian companies like Agricultural companies to start exporting and producing in Egypt. Egypt is a huge market and both sides can benefit from it big time. They should also start producing Kamaz or Ural trucks in Egypt. Don't know much about its mining industry, but could also sell steel at lower prices.

magnumcromagnon wrote:

ahmedfire wrote:Ineresting
Egypt to join Russia-led Eurasian free trade zone

Sounds like good news, Egypt needs a strategic Seed Bank, as well as Food Bank with a minimum 10 million tons of grain kept at a refrigerated temperature. Egyptian grain/bread prices factors heavily in to how stable Egypt is. Russia should work a deal where the grain grown in the Eurasian Union should be sold to Egypt at a fraction of world market prices, to the point where grain/bread prices are cut by 50%.

Right ,huge see bank facilities is very important , Egypt has opened its National Gene Bank in 2004,it contains 1,100 accessions from 750 wild
desert plant species , co-operation with Russia will expand our projects.

magnumcromagnon wrote:

ahmedfire wrote:Ineresting
Egypt to join Russia-led Eurasian free trade zone

Sounds like good news, Egypt needs a strategic Seed Bank, as well as Food Bank with a minimum 10 million tons of grain kept at a refrigerated temperature. Egyptian grain/bread prices factors heavily in to how stable Egypt is. Russia should work a deal where the grain grown in the Eurasian Union should be sold to Egypt at a fraction of world market prices, to the point where grain/bread prices are cut by 50%.

Sounds like Soviet economic policy for its client states. That sorta thing went a long way towards bankrupting it.

Selling for half price.. what's next, buying for twice the price?

If Egypt wants cheap grain from Russia, then it should commit to buying huge quantities of it every year (that much is effectively true already). Then, both sides could invest (Egyptian side can invest with the money from a Russian loan if needed) into upgrading and streamlining their logistics and transport links with each other for this type of good, and sign-off on trading large volumes, of at least a guaranteed quantity each year, based on a long-term contract; at least 15 years or so.
That way, the cost of transporting the grain will significantly decrease, and due to Egypt committing to buying huge volumes, Russian grain producers can offer a discount to Egypt too.

Result - Egypt will get the lower-price grain that it needs, without any funny trade terms entering into the equation.

sepheronx wrote:

magnumcromagnon wrote:

ahmedfire wrote:Ineresting
Egypt to join Russia-led Eurasian free trade zone

Sounds like good news, Egypt needs a strategic Seed Bank, as well as Food Bank with a minimum 10 million tons of grain kept at a refrigerated temperature. Egyptian grain/bread prices factors heavily in to how stable Egypt is. Russia should work a deal where the grain grown in the Eurasian Union should be sold to Egypt at a fraction of world market prices, to the point where grain/bread prices are cut by 50%.

that would be a good start.  Sell it at lower than normal market price to help Egypt market.  As well, this should be a good sign for Russian companies like Agricultural companies to start exporting and producing in Egypt.  Egypt is a huge market and both sides can benefit from it big time.  They should also start producing Kamaz or Ural trucks in Egypt.  Don't know much about its mining industry, but could also sell steel at lower prices.

Egypt has many mining resource :
Tantalite (48 million tons fourth largest in the world), iron ore, phosphates, salt, asbestos , quartz, zinc, tin, lead, copper etc
Egypt export finished and semifinished some steel products and import others from Russia and other countries.

Russia will contibute and invest alot in the new economic regions(new suez canal project) in Egypt in many fields like hydrpower energy , nuclear energy,car industry ,satellites and ofcourse seeds .

Here we go,

Egypt's plan to build a logistics hub to store, trade and manufacture grains and seeds will cost a total of LE13.1 billion, a supply ministry spokesperson told Ahram Online on Friday.

Egypt's logistics hub for grain trade and storage to cost LE13.1 bln

Egypt appears to be one of Moscow’s largest customers. “Two major deals signed in 2014 worth over $6.5 billion for MiG-29Ms, Mi-35s, S-300VMs, mobile coastal defense missiles and submarines, as well as the opening of the Russian helicopter maintenance center in Egypt scheduled for 2015” are the most recent transactions, he said.

LINK

Transition to national currencies to boost Russia-Egypt trade — Egyptian Foreign Ministry

Russia, Egypt to Hold Joint Naval Drills in the Mediterranean in 2015

Russia and Egypt sign protocol on military cooperation

MOSCOW, March 4. /TASS/. Russia and Egypt have signed a protocol on military cooperation Wednesday after the first session of the joint commission on military and technical cooperation.

Russian Defense Minister Sergey Shoigu and his Egyptian counterpart Sedki Sobhi presided at the session.

"The sides discussed the results of the military and technical cooperation in 2014 and outlined priority prospects of cooperation in this sphere for 2015," the Russian Defense Ministry’s press service said.

An agreement on joint commission on military and technical cooperation was signed as well along with the protocol for its first session.

Before signing the documents, Shoigu presented his Egyptian counterpart with the Pravda newspaper edition from May 15, 1964 - on that day, the second President of Egypt Gamal Abdel Nasser was awarded the title Hero of the Soviet Union.

Sobhi’s visit to Russia will end on March 5, the Russian Defense Ministry said.

Egypt Considers Buying Russian SSJ100 Planes for National Airline

Egypt is interested in purchasing Russian Sukhoi Superjet 100 (SSJ100) aircraft for its national carrier, Egypt Air, Egyptian Minister of Civil Aviation Mohamed Hossam Kamal said Monday.
CAIRO (Sputnik) — According to Kamal, on Tuesday a presentation of the SSJ100, at which “all the Egyptian experts in the sphere of aviation will be present,” will take place in Cairo.

This current geo-political struggle isn't like the Cold War where you had 2 clear blocks, it's more complicated and is largely an economic struggle. The Saudi's are Sisi's backers so he is bound to a certain degree to support them on some issues. On the other hand he is pretty friendly to Russia....so yeah, it's confusing.

Egypt is also showing interest in the Superjet


Egypt Considers Buying Russian SSJ100 Planes for National Airline

Read more: http://sputniknews.com/business/20150525/1022548503.html#ixzz3bC9RTtUP

Flyboy77 wrote:

sepheronx wrote:

Russian Patriot wrote:http://www.globalsecurity.org/military/library/news/2015/05/mil-150525-sputnik03.htm?_m=3n%2e002a%2e1426%2edd0ao031i6%2e1b5c 2 Billion  dollars  for the 46 MIG 29 Fulcrum

That roughly comes out to $43.5M per unit. Does the purchase also come with spares, training and what not? Cause at that price, they could go with the more potent/powerful Su-30 series aircraft.

I read somewhere that it included training, spares and weapons.

Not a bad deal I suppose then.

Not military related but: http://tass.ru/en/economy/796797

So Egypt will get 12 ssj-100 part of a lease.

Russia May Start Delivering SSJ100 Airliners to Egypt by End of 2016

Read more: http://sputniknews.com/science/20150527/1022587449.html#ixzz3bHiI6rm7

This would be very important shift in balance of power in middle east

Egypt to Join Russia-Led Eurasian Economic Union in 2016

Except what is being discussed isn't "Joining the EEU" but establishing a free-trade agreement with it.
Same with Vietnam, which already approved such a deal, that is very different than joining the EEU entity,
which entails a common tariff on all external trade, and other "internal" rules which don't apply to mere "free trade deals".
Actually joining EEU would be rather bizarre for Egypt or Vietnam, as vast majority of their trade is not with EEU
(Vietnam within ASEAN free-trade zone which EEU common tariff would be incompatable with, just as Armenia EEU membship was incompatable with EU free trade deal)
and in fact them joining EEU would make further trade deals with other countries more difficult, since Egypt/Vietnam would be included...

Russia, Egypt plan to sign agreement of simplified port visits procedure by yearend

The Russian-Egyptian naval exercise Friendship Bridge-2015 in the Mediterranean entered the active phase on June 10

ALEXANDRIA /Egypt/, June 14. /TASS/. Russian and Egypt plan to sign an agreement on simplified procedure for port visits by their ships by the end of this year, Russian deputy Navy Commander Alexander Fedotenkov said on Sunday.

He spoke at a news conference dedicated to the results of the first Russian-Egyptian naval drills Friendship Bridge-2015 that ended on Saturday.

"Several days ago, a joint commission ended its work and we have practically agreed the bulk of provisions of a future agreement on the simplified procedure for port visits by our countries’ ships," he said. "In August, the Egyptian part of the commission will arrive in Moscow to finalize this agreement and get it prepared for signing, which is planned at the end of this year. It is a very quick development of such a serious document."

Fedotenkov said the development of the Russian Navy was being conducted in strict compliance with the programme of development up to the year 2050. The programme was signed by Russian President Vladimir Putin in May 2015. "We have encountered certain problems stemming from the necessity to substitute for imported equipment. But nonetheless we are keeping within the parameters planned for this year in this programme," he said. "We are finishing state trials of the Admiral Grigorovich patrol ship which is to be handed over to the Russian Black Sea Fleet after the celebrations of the Navy Day in St. Petersburg. We are building ships and boats under other projects and the works are being performed as scheduled. The Black Sea Fleet is a priroty task."

The Russian-Egyptian naval exercise Friendship Bridge-2015 in the Mediterranean entered the active phase on June 10. The Russian and Egyptian ships drilled skills to organize air defence, search for, rescue and tug to safety a ship in distress, transfer cargoes from a helicopter on the move and inspect a suspicious ship.

Russia’s naval group participating in the exercise consisted of the guided missile cruiser The Moskva, missile-carrying hovercraft The Samum, tanker ship The Ivan Bubnov, sea-going tug MB-31, and amphibious assault ship The Aleksandr Shabalin. Egypt delegated two frigates-The Taba and The Sharm El-Sheikh, two missile boats -The April 25 and The June 18 and the Shalatin tanker.