Agreement guarantees customs and tax regime for 49 years, Russian official has said

Russian companies will receive major tax and customs incentives to operate in Egypt's Russian Industrial Zone (RIZ) under a new long-term deal, Roman Chekushov, Russia's deputy minister of industry and trade, told the media.

The announcement followed a recent high-level delegation visit to Egypt, led by Russian Deputy Prime Minister Alexei Overchuk, who met with Egyptian Prime Minister Mostafa Madbouly, Foreign Minister Badr Abdelatty and other officials.

The tax and customs regime "is enshrined in an intergovernmental agreement and will not be subject to change for 49 years," Chekushov said, calling the terms "unique".

Chekushov described the RIZ as having "an excellent logistical location" on the Gulf of Suez, with developed infrastructure and strong transport links, including to the Suez-Hurghada highway and a nearby railway network. The land agreement for the site was signed in May.

More than 30 Russian firms accompanied Overchuk's delegation. The focus of the trip was mostly on the RIZ, which is scheduled to start operations in 2030.

"We also discussed issues related to technical regulation, so that our companies can gain guaranteed access to the market, receive the necessary certificates, and participate in tenders," Chekushov said.

Key sectors targeted for investment include mechanical engineering, chemicals and petrochemicals, pharmaceuticals, and medical equipment. Chekushov noted that Africa's demand for chemicals, in particular, continues to grow, making Egypt's location a gateway for Russian exports. "Egypt has signed more than 70 preferential trade agreements," he added.

Overchuk commented that Egypt "proposed expanding the geography of tourism for Russia," noting that 15% of Egypt's tourism revenue comes from Russian visitors.

READ MORE: Russia eyes deeper trade ties with Africa export center

The minister added that Russia's Economic Development Ministry will join the proposed expansion and that Egypt is ready to host Russian inspections to meet requirements.

(RT.com)