The truth is in the grain: Russia and Egypt have made progress in creating an agricultural hub

Russia and Egypt expect to complete the preparation of a financial and economic justification for the creation of an agricultural hub within a year, after which they will begin construction, Egyptian Minister of Supply and Domestic Trade Sherif Farouk told Izvestia. In the future, the logistics hub may become the basis for the functioning of the BRICS grain exchange, experts believe. The project was actively discussed at the Russia–Africa summit: Moscow and Cairo are agreeing on the place of its construction. How the project is important for both sides is described in the Izvestia article.

When will they start building the hub

Egypt is one of Russia's key partners in Africa. The country traditionally ranks first among all African states in terms of trade turnover with Moscow. On October 28, Vladimir Putin held talks with Egyptian President Abdel Fattah al-Sisi, who led the country's delegation to the third Russia–Africa summit. The Head of the Russian Federation noted that the bilateral trade turnover in 2025 showed record values, exceeding $10 billion for the first time, and increased by another 14% year-on-year in the first eight months of 2026. This is a significant part of the trade turnover of the Russian Federation with all countries of the continent, which exceeds $27 billion.

The creation of a hub for grain storage, processing and transportation can strengthen trade relations between the two countries. The Egyptian authorities plan to finalize the financial and economic justification of the project within the next year, after which its practical implementation will begin. This was reported to Izvestia by the Minister of Supply and Internal Trade of Egypt, Sherif Farouk.

— This is the main and most important issue on our agenda today (at the Russia–Africa summit. President Abdel Fattah al-Sisi and President Vladimir Putin fully agree on the creation of this logistics hub. We are paving the way for Russian investors and the Russian experience. We are currently in the process of preparing a financial and economic feasibility study and expect to complete it within one year," he stressed.

The hub will allow Egypt not only to provide uninterrupted supply to the domestic food market, but also to become a key center for processing, storing and distributing Russian grain and other goods to the Middle East and the African continent.

Russia sees prospects for creating a grain hub in the city of Alexandria, where one of the Russian traders already works, Russian Agriculture Minister Oksana Lut said during the Russia–Africa summit. At the same time, according to her, Cairo offered to consider an alternative site, so the issue of the location is still being worked out. She also added that today Moscow is ready to provide Egypt with grain in any quantities necessary for its food security.

Bread sign: Russia and Egypt are closer to creating a grain hub

Where exactly can the initiative be implemented and how will the El-Dabaa NPP help here

The logistics hub project will create a comprehensive agrologistic ecosystem, from modern grain elevators where grain and wheat will be stored to processing plants and transport hubs, Sheriff Farook said earlier. Egypt's unique geographical location at the junction of Europe, Asia and Africa makes it an ideal platform for joint investments in infrastructure, ports and grain trading.

The existence of the Suez Canal Economic Zone is especially important. It gives investors a special tax and customs regime that allows them to import raw materials and store goods without unnecessary duties. In addition, Egypt is working on a commodity exchange and implementing digital mechanisms to control quality and minimize grain losses.

Why is the project important for Russia and Egypt

First of all, the grain hub will allow Russia to significantly increase the supply of its goods and products through Egypt. Cairo is traditionally considered the gateway to Africa, so thanks to the project, Moscow will be able to significantly expand the market for its products to other countries in Africa and even the Middle East, Maria Popova, CEO of the logistics company Weved, told Izvestia.

Today, Egypt already supplies processed grain products to Saudi Arabia, Sudan, Mozambique, South Africa and a number of other countries, Kirlan Marcel, a leading researcher at the Center for Banking Consulting and Applied Research at the Financial University under the Government of the Russian Federation, told Izvestia. With the hub, Cairo will be able not only to launch the re-export of products from the Russian Federation to these countries, but also to increase the supply of finished goods after processing Russian grain.

Warehouses, processing facilities, and regular transportation services will help build stocks closer to sales markets and sell both grain and finished products: flour, cereals, and feed, Maria Popova noted. On the other hand, Russian exports will not increase immediately, because some of the cargo will simply change its route. Its real growth is possible if the hub attracts new customers, and the final cost of the goods, taking into account transshipment and storage, will be competitive.

In the future, the Egyptian hub may become a physical base for the BRICS grain exchange, said Irina Karapetova, associate professor at the Financial University under the Government of the Russian Federation. Egypt joined the association as a full member in January 2024. In this case, the exchange will take over trading and pricing, and Egyptian ports and grain elevators will take over storage and shipping of goods. In practice, it will look like this: an exporter from the Russian Federation sells grain on the platform, the goods arrive at the terminal in Egypt, and from there they go to the final buyer. But settlements in national currencies, bypassing the dollar, remain a separate challenge. This will require stable bank payment channels.