Egypt and Russia are in talks for a partnership to establish a logistic free zone in Cairo to store grains, which would greatly contribute to food security in Egypt while also benefiting neighboring countries, Al-Monitor writes.
During 2021, Egyptian Minister of Supply and Internal Trade Ali el-Moselhi met in Cairo with Russian Deputy Agriculture Minister Sergey Levin. Moselhi said they discussed the establishment of an Egyptian-Russian partnership for grain production in Egypt, as well as the establishment of a logistic free zone for wheat storage in Cairo with an initial capacity of 1 million tons per year
In a press statement, Moselhi noted that Russia is a major trading partner for Egypt, and that he discussed with the Russian side the possibility of establishing a partnership for grain trading in Egypt, which would turn it into a nucleus for achieving stability in strategic commodities and ensuring food security for Cairo and neighboring countries, both Arab and African.
He continued that the meeting discussed a partnership to establish storage tanks for edible oils. It was also agreed that a joint committee would follow up on the implementation of the proposals and study them in detail in order to prepare memoranda of understanding and cooperation protocols, as a prelude for their execution on the ground.
Egypt is the world’s largest wheat importer. It imported about 12.5 million tons worth $3 billion and 12.9 million tons worth $3.2 billion in 2019 and 2020, respectively, according to data provided by the Central Agency for Public Mobilization and Statistics.
Egypt’s government imports of wheat amounted to 5.5 million tons in 2021, in addition to about 3.5 million tons secured locally from farmers. Russia is one of the largest wheat exporters in the world.
Rashad Abdo, an Egyptian economic expert and president of the Egyptian Forum for Political and Strategic Studies, told Al-Monitor that the Egyptian-Russian partnership in grain trading and wheat storage is a very important step to achieve food security in Egypt and the African continent. “These countries are the largest wheat importing countries in the world. Their food security is all the more threatened currently in light of the coronavirus pandemic and climate changes,” he said.
