Egypt and Russia sign contract to build Egypt's first nuclear plant

Russia and Egypt have signed a deal to start work on Dabba Nuclear Power Plant after the two presidents met in Cairo on Monday.

Russian President Vladimir Putin met Egypt's President Abdel Fattah el Sisi in Cairo on Monday for talks on co-operation and tensions in the Middle East after Washington's decision to recognise Jerusalem as Israel's capital triggered unrest in the Muslim and Arab world.

"Russia is ready in principle to resume direct passenger flights to Egypt and an agreement is expected to be signed in the near future," Putin said after meeting Sisi. 

Moscow halted civilian air traffic to Egypt in 2015 after militants bombed a Russian Metrojet flight leaving from the tourist resort of Sharm el Sheikh, killing 224 people onboard.

Military ties

Putin's visit reflects growing ties between Russia and Egypt, the second-largest recipient of US military aid after Israel and a strategic US partner in the Middle East because of its control of the Suez Canal.

After taking office, Sisi has bought billions of dollars' worth of Russian weapons, including fighter jets and assault helicopters.

In November, Russia's government published a draft agreement between Russia and Egypt allowing both countries to use each other’s air space and air bases for their military planes.

The deal will mark a significant leap in bilateral ties and evidence of Moscow's expanding military role in a turbulent Middle East. That deal, if it goes through, will likely irk the United States, until now a top Egypt military ally.

Jostling for influence

Putin has been steadily building relations with Egypt. On his visit to Cairo in 2015, he was the first leader of a major power to meet with Sisi after the former Egyptian army commander ousted President Mohamed Mursi in 2013.

That prompted Washington to cool relations with Egypt, and the US government suspended some military aid.

Since then Putin and Sisi have increased cooperation, reviving the historical alliance between Egypt and Soviet Union of the 1970s. Cairo had moved closer to the United States when Washington brokered a peace deal with Israel in 1979.

Russian state nuclear company Rosatom said on Monday the Dabaa nuclear station it will build in Egypt will have four reactors and cost up to $21 billion with construction expected to finish in 2028-2029.

The high-level Russian visit came after the US government in August decided to deny Egypt $95.7 million in aid and to delay another $195 million because of its failure to make progress on human rights and democratic norms. 

Putin, who is due to fly to Turkey after Cairo, briefly visited a Russian base in Syria before arriving in Egypt and ordered Russian forces to start withdrawing from Syria after a two-year military campaign.