MOSCOW: Russia s Gazprom and the Egyptian government have signed a memorandum of understanding on cooperation in Egypt s gas sector, the Egyptian Trade and Industry Minister told Reuters on Friday. Minister Rachid Mohamed Rachid said the Russian gas giant could help Egypt develop its natural gas production and exports. The memorandum covered exploration, sharing technology, and cooperation in marketing gas, he said. He was speaking after a meeting with Gazprom CEO Alexei Miller at the end of a three-day visit to Russia aimed at improving trade ties that were once strong but slumped when the Soviet Union collapsed. He also said the Egyptian and Russian governments signed a separate memorandum of understanding to begin talks on a free trade agreement. As a first step, Russia had agreed to cut import tariffs on some Egyptian goods, he said. We are expanding in gas production, gas exports, and we are moving into the European market with our gas products, the minister told Reuters in an interview. Obviously if that is happening there is a merit in joining hands with the Russians in some of the activities: joint ventures in technology, marketing coordination. Alexei Miller has been to Egypt. He is coming back next week. There is already an MOU signed between him and our ministry of petroleum to look into some possible cooperation in Egypt, he said. Gazprom said in a statement it was looking at a partnership with Egypt s state-owned EGAS that would help develop Egyptian oil and gas infrastructure. Rachid said the volume of trade between Russia and Egypt stands at $1.3 billion (about LE 7.5 billion) a year. He said his target was to bring that figure to $3 billion (over LE 17 billion) within the next five years. The balance of trade favors Russia, with Egypt importing large amounts of Russian wheat and fuel. Its biggest exports to Russia are fruit, vegetables and textiles. Russians make up 10 percent of the tourists visiting Egypt. Rachid said agreement had already been reached on preferential treatment for Egyptian farm products, textiles and white goods. The size of the cut in import tariffs was still being negotiated, he said. All these products will have preferential treatment at the first stage and then we will go to FTA ... We are sure this will have a very positive impact. The Egyptian government also wants to encourage Russian aircraft makers and automakers to set up component manufacture and assembly plants in Russia. Talks are underway with truck manufacturer KAMAZ and carmaker AvtoVAZ, which already assembles Lada saloon cars at a plant in Egypt.
