As a series of top military and diplomatic meetings between Cairo and Moscow took place in Egypt last month, the Russian bear was also aiming to tap the Egyptian market. In anticipation of a visit by Russian President Vladimir Putin to Cairo, perhaps before the end of the year, Russian Foreign Minister Sergei Lavrov said in an interview with Al-Ahram last month that Russia wanted to express its support for democratic transformation in Egypt and for the creation of more efficient socio-economic system. The Russian Direct investment Fund (RDIF), a $10 billion state-owned fund, is now evaluating investment possibilities in Egypt, looking at opportunities that could be good for growth in Egypt and the Middle East region, Kirill Dmitriev, the CEO of the Fund, told Al-Ahram Weekly in a phone interview earlier this week. RDIF has been set up by the Russian government to make equity investments inside and outside Russia, and it is planning to invest 20 per cent of its capital, up to $2 billion, outside Russia, according to Dmitriev. Dmitriev is one of the main speakers at the two-day Egypt/GCC Investment Forum that started in Cairo yesterday to discuss strategic partnerships and economic synergies between Egypt, the GCC and other countries. “We are in the stage of meeting with key figures in the government and the private sector and getting acquainted with the Egyptian market and understanding the status of the economy,” Dmitriev said. During his visit he said he would be meeting with ministers, government officials and key business figures, as the fund was seeking partnerships with both the private and the public sector. According to a report by the Regional Centre for Strategic Studies in Cairo, economic relations between Egypt and Russia are currently insubstantial. Trade exchange between Egypt and Russia reached $3.6 billion in 2012, with the trade balance in favour of Russia. Russian exports to the Egyptian market amounted to $3.3 billion, compared to $2.82 billion in 2011, while Egypt's exports to the Russian market were worth only $300 million, less than 3.5 per cent of Egypt's total foreign trade. Russian investments in Egypt currently stand at no more than $66 million. Wheat accounts for 50 per cent of Russia's exports to the Egyptian market, along with other commodities, such as wood, oil, iron products and newsprint, while Egyptian exports to the Russian market are agricultural products, carpets, paintings and some cotton products. The total number of Russian companies operating in the Egyptian market has reached 383, operating mainly in the services sector, such as tourism, construction, telecommunications, information technology and finance, as well as the industrial and agricultural sectors. Russia ranks 46 in terms of the countries investing in Egypt. Egyptian investments in the Russian market reached about $7 million at the end of 2012, and are concentrated mostly in timber, which is exported to Egypt. “We are interested in investing in specific sectors in Egypt, such as agriculture and the infrastructure of the agriculture sector. Egypt could be one of the hubs for food exports to Middle East, as investments can be injected into building silos and enhancing the agricultural infrastructure,” Dmitriev said. He added that RDIF was also interested in seeking investments in power-generation projects in Egypt. Since its inception in 2011, RDIF has invested more than $3.5 billion into leading Russian companies and attracted $9 billion of foreign capital into the Russian economy through long-term strategic partnerships. Over past months, RDIF has established a number of high profile partnerships with large Middle Eastern players, including a partnership for investing in Russian infrastructure projects with the Abu Dhabi department of finance ($5 billion), a co-investment fund with the Abu Dhabi Mubadala investment agency ($2 billion) and a co-investment mechanism with the Kuwait Investment Authority ($500 million). “Egypt can also benefit from the RDIF model and experience,” stressed Dmitriev. “We have the know-how, and may be Egypt can set up its own fund and do something similar.”