The restoration of the Egypt-Ukraine Business Council will be on the agenda of the intergovernmental bilateral meeting in June, which will be held in Egypt, Ambassador Extraordinary and Plenipotentiary of the Arab Republic of Egypt Ayman Ahmed Mokhtar Elgammal has said in an exclusive interview with Interfax-Ukraine.
He said that the Egypt-Ukraine Business Council will consist of representatives of Ukrainian and Egyptian business.
The Ambassador said that the Chambers of Commerce of both countries will present participants who are interested and have experience in doing business both in Ukraine and in Egypt. The council’s activities will also be aimed at promoting business and bilateral investments, holding various sectoral specialized exhibitions in both countries. Thus, since the council includes both sides, it will be clearer for business how to invest in Ukraine, Elgammal said.
The ambassador recalled that the Egypt-Ukraine Business Council was created ten years ago, but has been inactive in recent years.
The focus of activity (of the council) is not limited to investments. All types of business activities, investments, co-production, joint ventures and projects depending on the sector – everything will be promoted by this council, Elgammal said.
He is convinced that obtaining information on investment opportunities in Ukraine and Egypt through the council will be much faster and easier than through government institutions in both countries.
Ukraine and Egypt are discussing the possibility of joint production between enterprises and export to the African market, Ambassador Extraordinary and Plenipotentiary of the Arab Republic of Egypt Ayman Ahmed Mokhtar Elgammal has said in an exclusive interview to Interfax-Ukraine.
Egypt is a member of a number of free trade areas in African and Arab countries, he said. The official added that, for example, they invited the Ukrainian government to invest in the Suez Canal Economic Zone (SCZone).
According to the ambassador, Ukrainian enterprises will be able to manufacture products in Egypt and benefit from Egyptian free trade agreements in the region.
This will also be the topic of a meeting of the intergovernmental technical committee in June, he added.
At the same time, he clarified that so far no proposals have been received from Ukrainian companies on investments in SCZone.
At the same time, various organizations in Ukraine, in particular Ukrmashbud and its member companies, have asked to open their representative offices in Egypt for the joint production of high-tech goods of heavy engineering, the ambassador said.
Egypt, according to forecasts, in 2021 will be visited by about 8 million foreign tourists, of which about 1.5 million are Ukrainians, Ambassador of the Arab Republic of Egypt Ayman Ahmed Mokhtar Elgammal told Interfax-Ukraine in an exclusive interview.
“Basically, Ukrainians choose Sharm El Sheikh, Hurghada, beach hotels, from where they go for a maximum one-day educational trip – to see the pyramids and the main attractions of Cairo,” he said.
According to the ambassador, other tourist products are actively offered to Ukrainians.
“We offer to visit a variety of historical attractions, four-day cruises on the Nile from Luxor to Aswan, new areas for water sports, windsurfing. In addition, in the west of the desert there are unique mineral waters and salt lakes, useful for recovery. This year, Ukrainians began to convert attention to such attractions,” the diplomat said.
Elgammal also noted the growing demand for a longer stay of Ukrainians in Egypt. “Egypt is an excellent offer for Ukrainian employees working ‘remotely’: the weather is good all year round, it is close and easy to get to. And we stimulate such tourists: we provide a 20% discount on accommodation for a long period of time, 20 days or more,” he said.
The ambassador named some of the partnership programs to attract new Ukrainian tourists. “We have already launched joint campaigns with tour operators, which run until October 2021. We also have a flight incentive program for airlines, which includes visa facilitation, 50% discount on landing fees, accommodation, and 20% discount on ground handling fees. In addition, we have reduced fuel prices by $0.15 per gallon until the end of 2021,” said Elgammal.
Egypt has moved from the importers of natural gas to the category of producers due to the discovery of deposits on the Mediterranean shelf, therefore one of the promising areas of cooperation is the export of gas to Ukraine through barter deals for grain and other products, Extraordinary and Plenipotentiary Ambassador of the Arab Republic of Egypt Ayman Ahmed Mokhtar Elgammal has said in an exclusive interview with Interfax-Ukraine. He said this will improve the trade balance – there will be no need to attract foreign currency into the transaction, and will also allow to align the import/export balance, to correct the existing bias towards Ukraine.
At the same time, Ukrainian companies are encouraged to invest in renewable energy in Egypt. However, there are no specific agreements yet, the ambassador added.
At the same time, the official stressed that the Egyptian side is interested in investing in Ukraine.
The main interest of Egyptian companies in projects of agricultural production and animal husbandry, but projects in the energy sector are not yet discussed, he said.
At the beginning of April this year, Petrosannan Company – a joint operating company of NJSC Naftogaz Ukrainy and the Egyptian General Petroleum Corporation – performed hydraulic fracturing work on pilot wells in the concession area in the Western Desert of the Arab Republic of Egypt, thanks to which oil production increased more than 20%, or 600 barrels per day. According to a press release from the Integrated Communications Department of NJSC Naftogaz Ukrainy on Monday, provided that the achieved production volumes and current oil prices ($60 per barrel) are maintained, Naftogaz Group will thus receive additional income of $400,000 per month.
“Only the start of the current well stimulation campaign has allowed us to increase our oil production by 20%. We are planning to use this experience in the future, in particular, hydraulic fracturing of the wells, at other sites operated by Naftogaz Group in the Arab Republic of Egypt,” First Deputy Head of Naftogaz Serhiy Pereloma said.
Naftogaz Group implements hydrocarbon exploration and production projects in the Alam El Shawish East area in the Western Desert and South Wadi El Mahareeth and Wadi El Mahareeth areas in the Eastern Desert of Egypt.
Ukraine has started preparations for negotiations on new agreements on a free trade area (FTA) with Egypt, Jordan, Indonesia and China, Minister of Economic Development, Trade and Agriculture Ihor Petrashko has said.
“Preparations are underway for negotiations on an FTA with Egypt, Jordan, Indonesia and China,” he said during a press conference in Kyiv on Tuesday.
He also said Ukraine has started negotiations with the EU on revising the Association Agreement.
Petrashko said the additional capitalization of the Export Credit Agency (ECA) to UAH 2 billion, which is provided by the 2021 national budget, will strengthen Ukraine’s export positions
