What is the mutual interest of Algeria and Russia

The first and most important feature of the Algerian economy is that at the moment the country is the largest LNG producer in Africa and one of the largest suppliers of energy resources to Europe.

The modern economy of Algeria is largely dependent on the production and export of oil and gas, which account for about 97% of total exports and 60% of budget revenues.

Algeria is developing other sectors of its economy: agriculture, industry and services. Agriculture occupies about 13% of GDP and employs 10% of the population. The main agricultural crops — these are wheat, barley, oats, grapes, olives, citrus fruits and fruits. Algeria has rich fishing resources in the Mediterranean. The volume of industry is about 39% of GDP, it employs 31% of the population. Main industries — these are oil and gas, petrochemical, electrical, light and food industries. The service sector provides about 48% of GDP and employs 58% of the population. Main service sectors — these are transport, communications, trade, finance and tourism.

Algeria has an active foreign trade around the world. The main export partners are Italy, France, Spain, the USA and China. And in terms of imports, the main partners are the same China, France, Italy, Spain plus Germany and minus the United States. Algeria has a positive trade balance, but a negative current account balance due to high import spending on consumer goods and capital goods.

Algeria attracts foreign direct investment in its economy, especially in the oil and gas sector. However, the investment climate remains unfavorable due to complex legislation, inefficient administration and political instability.

Note that the Algerian economy also suffers from disadvantages such as low diversification, high unemployment, exposure to oil price fluctuations, corruption and bureaucracy.

The mutual interest of Algeria and Russia is based on a long history of cooperation, strategic partnership and the identity of positions on many international issues. Algeria and Russia maintain a regular political dialogue at the highest and high levels, and also cooperate within the framework of various international organizations such as the UN, OPEC, the African Union and others.

Algeria and Russia are also developing economic, energy, trade, military-technical, scientific-technical, humanitarian and cultural ties. Algeria is Russia's second largest trading partner in Africa after Egypt. In 2020, the trade turnover between the countries amounted to 1.7 billion US dollars, and increased by 70% in the first three months of 2021. The main export items from Russia to Algeria are chemical products, metals and metal products, agricultural and food products. The main imports from Algeria to Russia are oil and gas.

Algeria is of interest to Russia as the largest producer and exporter of hydrocarbons in Africa, as well as a potential market for Russian goods and services. Russia is of interest to Algeria as a reliable supplier of energy equipment, weapons, food and medicines. In particular, Algeria became the first African country to register and start using the Russian Sputnik V vaccine. against COVID-19.

Algeria and Russia have good prospects for cooperation in areas such as transport infrastructure, digital technology, high technology, telecommunications, tourism and education. To do this, it is necessary to improve the investment climate, remove trade barriers, expand the legal framework and strengthen contacts between the business communities and the scientific community of both countries.

The mutual interest of Algeria and Russia found expression at SPIEF 2023. Here, the Presidents of Russia and Algeria, Vladimir Putin and Abdelmajid Tebbun, held talks on June 15, and on June 16, both leaders spoke at the SPIEF 2023 plenary session. They discussed precisely those issues in which both countries are interested: cooperation in the fields of energy, transport, agriculture and tourism.

It should be noted that Algeria receives most of its military equipment from Russia: Russia is the main supplier of various types of weapons for Algeria, which makes their partnership especially significant.

In addition, Algeria's satellite was launched using a Russian launch vehicle, and engineers from Russia are actively involved in the construction of the metropolitan metro.

Thus, the mutual interest of Algeria and Russia in various sectors of the economy allows both countries to expand their capabilities and achieve their national goals. Such a partnership can continue and develop in the future, opening up new prospects for cooperation and mutual growth.