Egypt’s Ministry of Industry and Trade is currently conducting negotiations with the Russian government for the establishment of an industrial zone in Egypt, according to a statement on the ministry’s website.

The statement said that an agreement will be signed during a meeting in May between the two governments in Moscow.

It is understood that at least 15 companies have committed to taking part in the planned Russian industrial zone in the East Port Said area of the Suez Canal Industrial Zone (SCZone).

Initial negotiations between the Egyptian Industrial Development Authority (IDA) and the Russian government for the industrial zone temporarily stalled last year following the crash of the passenger flight in Sharm el-Sheikh on 31 October 2016, but have since resumed, according to local sources.

At the time, Egypt’s IDA has said that the 2 million-square-metre Russian industrial zone will service industries such as engineering, machineries, ship manufacturing and foods.

Russian firms Kamaz, Rostselmash and other companies affiliated to the Rostec and Morton groups will participate in the project, say sources close to the negotiations.