Egypt-Russia ties reach new heights amid war in Ukraine

As western countries turn their backs on Russia over its invasion of Ukraine, relations with Egypt, with whom Moscow celebrated 80 years of ties this month, have grown stronger.

Egypt has had to contend with record inflation, a dollar crunch and an import slump over the past year. Trade with Russia, which grew by 60 per cent to reach $6 billion in 2022, has been a lifeline.

After Egyptian President Abdel Fattah El Sisi hosted a senior Russian delegation this month, several new agreements were announced that suggested relations were reaching new heights.

One critical area of co-operation is energy.

The first shipment of equipment needed for the construction of El Dabaa nuclear power plant, which Russia is building on Egypt’s north coast, arrived from St Petersburg this week.

A Russian industrial zone in Egypt’s Suez Canal region was also announced.

Both sides “reiterated mutual commitment to the further development of bilateral relations in various spheres”, said Egypt’s presidential spokesman Ahmed Fahmy.

The plan is for the countries to co-produce a wide range of goods and for Russia to lend its expertise to Egypt, which aims to localise industries to reduce its reliance on imports.

Further “co-operation in the sphere of grain and food supplies in light of the global crisis” was also discussed, said Mr Fahmy.

Egypt imported 4.9 million tonnes of Russian grain last year and Egypt says it expects its reliance to continue.

On Wednesday, Egypt was announced as a new member by the Brics New Development Bank, which finances infrastructure development projects in member states of the Brics bloc of Brazil, Russia, India and China.

Russian tourist numbers in Egypt increased by 181 per cent over the past year, while visits to the EU fell by 99 per cent.

Russian Deputy Prime Minister Denis Manturov, who was part of the delegation that met Mr El Sisi, said both countries were ready to increase flights to accommodate rising demand.

Egypt and Russia are also examining a mechanism through which the Arab nation can pay for Russian wheat and other imports with roubles instead of dollars.

Analysts have said that this could be beneficial to Egypt, whose economy is heavily reliant on dollars.

As the Egyptian pound has lost more than half of its value against the dollar over the past year, it has looked for more affordable means of securing its many imports.