L. Fituni, I. Abramova Resource Potential of Africa and Russia's ...

ments about scientific and technological cooperation, mutual encouragement
and protection of investment, cooperation in the
sphere of marine transport and avoidance of dual taxation. He also
signed a treaty about the preferential customs duties, reduced from
50% to 25% of the value. Another agreement dealt with export
guarantees. In 1998, Russia and Egypt negotiated opening of a direct
shipping line with ships of the ‘river-sea’ type, which made it
possible to carry cargoes to the ports on the Volga, the Don and the
Caspian. The Egyptians Co. and the administration of Nizhegorodskaya
oblast (region) of Russia took part in the negotiation.
A considerable progress was achieved in 1998 in the negotiation
between Ingosstrakh, a Russian insurance company, and the Egyptian
Company for Export Credit Guarantees, which signed an
agreement about the guarantees against commercial risks in foreign
trade. In early 1999, Russia presented to Egypt a draft longterm
Program (road map) for trade, economic, industrial, scientific
and technological cooperation. In March 2000, the Egyptian-
Russian council for business cooperation was set up. It is headed
by Ahmed Diqa, an Egyptian entrepreneur.
In 1991–1993, the volume of Russia’s trade with Egypt drastically
decreased, owing to the disintegration of the USSR. Most of
the Black Sea ports remained in Ukraine, which led to an increase in
the cost of transportation of the exported and imported goods and
risk of damaging or losing cargoes. Another reason was payments in
hard currency, reserves of which are quite limited in the state-run
companies of both countries. The situation began to somewhat improve
in 2000. The total volume of Russian exports reached the precrisis
level.
The increase in Russian exports to Egypt after 1993 was accompanied
with some changes in its structure; its main feature was a
high share of machines and equipment (33.4% in 1993), including
aviation equipment (helicopters produced in Kazan and navigation
and radio location equipment). Egypt was interested in purchasing
Tu-204-120 aircrafts with RV-211-535 engines supplied by the
Rolls-Royce of Britain and avionics supplied from the USA. This
deal is financed by I. Kamel, an Egyptian businessman.
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