Russia & Egypt consultations for de-dollarization underway

By Al Mayadeen English
Source: Agencies
11 Feb 2023 16:59
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The Russian ambassador to Egypt Georgiy Borisenko announces that consultations remain underway for the transition to national currencies between Russia and Egypt.

A vendor counts Russian rouble banknotes at a market in Omsk, Russia February 18, 2022. (Reuters)

Consultations on the transition to national currencies as a means of exchange between Egypt and Russia are underway according to Russian Ambassador to Egypt Georgiy Borisenko.

The purpose of these talks is to move away from the dollar and thus "will help to avoid the arbitrariness on the part of Western countries that use their own currencies for geopolitical purposes."

According to the ambassador, "From the spring of 2022, intensive consultations have been ongoing regarding the transition to national currencies in settlements in mutual trade."

Borisenko also lauded Egypt for resisting Western pressure, and continuing to expand its relations with Russia.

"Despite all this pressure, Egypt remains faithful to the traditions of friendship between our countries, laid down during the presidency of Gamal Abdel Nasser, and continues to actively interact with Russia in the economic, cultural spheres and various international political platforms," Borisenko said in an interview with Sputnik.

Extending bilateral cooperation

The talks come as the two countries continue to extend bilateral cooperation. The Alyaum as-Sabi' news portal reported on January 28 that Egypt received 63,000 tons of grain from Russia as the malta-flagged PAREA cargo ship landed in the port of Safaga on the Red Sea today.

According to the report, the grain is reported to have fallen under the authority of the Egyptian Ministry of Supply and Internal Trade.

Egypt is Russia’s largest grain importer, and also the biggest grain importer in the world, with some 11-13 million tons being purchased from abroad yearly.

So far, since the start of the year, imports from Russia have reached 191,000 tons of wheat.

Because of sanctions against Russia, the US and the EU have caused massive disruptions in supply chains, prompting the North African country to find alternatives for diversification.

On January 9, Egyptian Supply and Internal Trade Minister Ali Moslehi told Russian news agency Sputnik that Egypt is planning on importing around 4 million tonnes of wheat in 2023 for bread production, which is subsidized by the government in Cairo.

"The annual consumption of wheat [for state-subsidized bread production] in Egypt is estimated at 9 million tonnes. This year we plan to receive 5 million tonnes of local wheat and import 4 million tonnes," Moselhi said.