The expert opinion was prepared following the results of the SPIEF-2023 session "Russia — Algeria".
The history of Russia's cooperation with the states of the African continent, in particular with Algeria, covers a significant time period, but the policy and development of economic relations have not yet reached a mature level. It should be particularly mentioned that Russia and Algeria celebrated the 60th anniversary of the establishment of diplomatic relations. Taking into account the complex and contradictory nature of transformational processes in the global economy and geopolitics, the leaders of the two countries declared their mutual desire to develop an effective strategic partnership, ensuring mutually beneficial cooperation in such important sectors as energy, pharmaceuticals, agriculture, high technology, and others. Historically, the relations between the two countries are based on the principles of friendship and trust. By defining the vectors of long-term development in partnership with Russia, Algeria is shaping its image as a reliable partner with a wide range of new promising projects for the development of mutually beneficial cooperation between the two countries. "Algeria is experiencing an unprecedented economic recovery," Mr. Tebboune told Russian businessmen at a meeting [1].
The discussion with the participation of representatives of ministries and business circles took place at the SPIEF 2023 site the day after the significant meeting of the presidents of the two countries - Vladimir Putin and Abdelmadjid Tebboune — in the Kremlin as part of the official visit of the Algerian delegation to Moscow. The visit resulted in the signing by the heads of the two states of the Declaration on In-depth Strategic Partnership, which consolidated a wider range of areas of cooperation compared to the 2001 document, including deepening military cooperation, support for the use of national currencies in trade, as well as coordination of actions in international energy organizations (OPEC+, the Forum of Gas Exporting Countries and others).
The current historical moment for Russia is characterized by the expansion of dialogue with countries in both North Africa and the Middle East. The emergence of a new pole of development around the economic ambitions of the Arab world, in particular the UAE, Saudi Arabia, Qatar and others, creates uncertainty for Algeria, which will have to make additional efforts to maintain its investment attractiveness. Algeria continues to play a significant role in the Mediterranean, African and Arab space, despite the fact that it is not possible to fully realize this role due to regional instability and against the background of deteriorating relations with neighboring States, for example with Morocco. For Algeria, the campaign to join the BRICS forum (Brazil, Russia, India, China and South Africa) takes on a special meaning at the current historical moment. Given the growing interest from developing countries in BRICS, at the end of 2022 Algeria submitted an official application to join the organization along with Iran and Argentina. Turkey, Egypt and Saudi Arabia have also expressed interest in membership in BRICS [2]. Russia supports Algeria's candidacy, which was officially announced at the SPIEF. The motivation for membership in the BRICS was the desire to avoid participation in "bipolar conflicts". Do not forget that Algeria remains a major exporter of oil and gas, with the EU and China remaining the main buyers of energy resources. It can be assumed that the country will strive to obtain certain preferences in the export of oil and gas in the space of the BRICS member countries. In many ways, this motivation is related to long-term development plans and the need to attract significant investments in the oil and gas sector to develop new fields and increase capacities for processing hydrocarbons. To a certain extent, Algeria's joining of BRICS in parallel with Saudi Arabia can exacerbate competition between major energy suppliers, unless they build relations on the principles of mutual trust and mutually beneficial conditions.
Over the past few years, the Russian side has consistently supported Algeria's desire to become the leading regional industrial and energy center of North Africa in the medium term. The work of the Joint Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation resulted in cooperation programs (roadmaps) in the fields of industry, transport, construction, geology, agriculture, healthcare, science, space and computer technology and in other sectors, which determined the vector of mutual interests.
It is important to emphasize the similarity of the views of Russia and Algeria on a number of issues on the international agenda: both countries advocate further strengthening the role of the UN and the Security Council in maintaining peace and security in a multipolar world. The stable development of Algeria and the achievement of socio-economic development goals will largely depend on reducing tensions in the region and resolving conflicts in Syria, Libya, Yemen and Mali. It should be added that, despite the extremely difficult historical legacy associated with the Algerian liberation war, France continues to influence regional dynamics and strives to maintain its role in determining the regional agenda. Realizing that France alone would not be able to hold the initiative, the diplomats proposed a new "3 + 3" political structure, implying a dialogue between North and South: between France, Spain and Italy on the one hand and Algeria, Morocco and Tunisia on the other. However, experts note the utopian nature of such a position due to the numerous conflicts and mismatch of interests of the countries in question, each of which relies on the development of bilateral relations.
Thus, the task of developing and bringing Russian-Algerian relations to a qualitatively new level will be solved in difficult geopolitical conditions characterized by increasing regional tensions.
Today, an intensive dialogue is underway at the level of the heads of ministries and departments of Russia and Algeria, who are interested in expanding partnership and emphasize their high readiness to implement joint infrastructure projects. Russia's position and the choice of priority areas for the development of bilateral business relations indicate the strategic importance of developing joint projects in both the raw materials and non-raw materials sectors. During the session, a wide range of areas for cooperation was identified, let's look in more detail at the example of the pharmaceutical and energy industries.
Algeria is one of Russia's leading trading partners in Africa, with trade volume of $3 billion in 2022. Algeria ranks third in terms of trade turnover with Russia among African countries, while the potential for trade and economic cooperation has not been exhausted. According to the Algerian Economic Situation Monitoring Report published by the World Bank [3], Algeria's economy is expected to grow by 2.3% in 2023, but the macroeconomic outlook will be under pressure from global hydrocarbon prices. This can explain the Algerian side's desire to more actively develop the private sector in the medium and long term, initiate projects not related to hydrocarbons, considering them as an engine of economic growth and economic diversification. Further implementation of national structural reform programs, increased openness to the private sector, increased competitiveness of the economy and increased investment in human capital also remain important factors for ensuring the viability and sustainability of the Algerian economy, as well as the basis for the development of Russian-Algerian relations.
There has been a positive trend in a number of areas of cooperation, and thanks to the high motivation and involvement of the leadership of the two countries, administrative barriers have been removed and special preferences have been identified for the implementation of a number of large investment projects.
The pharmaceutical industry in Russia represents one of the key segments of the development of non-primary exports. Despite the fact that the importance of cooperation in the field of both healthcare and the export of Russian medicines was regularly emphasized at the government level, according to REC data, pharmaceutical products worth 43 thousand US dollars were exported to Algeria in 2018 [4]. According to experts, such an insignificant figure is due to ignorance of the specifics of one of the largest African markets. The situation began to change due to the proactive position of the Algerian side, which offered Russian companies a number of preferences for export and localization of production in the country. In particular, when organizing a full production cycle on Algerian territory, one can expect to limit or completely ban the import of similar products. When conducting tender purchases of medicines, products manufactured at enterprises localized in Algeria receive 25% of the price preference. However, despite such measures, foreign manufacturers (Pfizer, GlaxoSmithKline, Sanofi, El Kendi and Hikma, Novo Nordisk and others) controlled about 38% of the Algerian market in 2018. The accelerated development of joint cooperation between the pharmaceutical industries of Russia and Algeria testifies to mutual trust, which allowed in a limited time to implement an anchor project with the participation of the Russian company Geropharm on technology transfer and ensure the production of insulin analogues at the plant of the Algerian state pharmaceutical company Saidal Industrial Group. The Russian side announces plans to launch new production facilities in Algeria in 2024, which confirms mutual interest and reflects the readiness of the Russian pharmaceutical industry to expand the supply of domestic insulin preparations through technology transfer and localization of production in Algeria. In the medium term, the implementation of similar projects outside Russia will meet the growing demand for domestic drugs from countries in Africa, the Middle East, Asia and Latin America. In order to further expand the export of medicines and localized production, it is important to increase competencies in the field of the specifics of the functioning of local markets, as well as in the field of product certification, procedures for checking production sites for compliance with the GMP standard, quality control of pharmaceutical products, including the results of clinical trials, as well as pricing. Thus, the progress achieved in the implementation of joint projects in the field of pharmaceuticals confirms the willingness of both sides to create mutually beneficial conditions, use tax, customs and other mechanisms for the implementation of major investment projects.
Energy and mining are also among the priority sectors. The implementation of successful projects in North Africa is of strategic interest to Russian business and opens up access to the Mediterranean market, which is important for Russia. Given that Algeria remains one of the key suppliers of energy resources, relations and joint projects between Algeria and Russia in the energy sector are certainly in competition with European interests. The conflict of interests escalated after the start of the CBO and the spread of sanctions on the Russian oil and gas sector, which significantly limited the supply of energy resources to EU countries. The Algerian side reacted negatively to the decision of the European Commission to set a ceiling on natural gas prices, believing that such actions are unilateral and aimed at destabilizing world markets. In the context of growing international tensions, on the contrary, the availability of open, transparent and unlimited energy markets is a crucial condition for the sustainable development of many countries, while the ceiling on natural gas prices may threaten the security and stability of energy markets.
Represented by the state oil and gas company Sonatrach, the Algerian side supports the idea of developing relations in the energy sector on the basis of long-term contracts. "We still believe that only an understanding of market behavior and future demand for natural gas can support investment policies in capital-intensive gas projects," Hakkar said. Sonatrach plans to supply more than 110 billion m3/year of natural gas to the market by 2027 to meet both domestic demand and export obligations. Today, Algeria provides about 11% of gas imports to Europe and could increase supplies in the long term, despite the fact that the possibilities of increasing energy exports are currently limited.
Algeria has historical ties with Italy, thanks to the gas transportation system. Trying to increase gas imports from Africa, Italy is striving to become an "energy hub". "Faced with the great energy crisis that Europe is experiencing, Algeria could become a leader in production, of course, in Africa, but perhaps also in the whole world. Italy is inevitably the gateway to this energy and to the supply of Europe," Ms. Meloni outlined her position during an official visit to Algeria in January 2023 [6]. It is important to add that during the visit, agreements were signed with Eni providing for the expansion of Algeria's export capacity to Europe, including the development of a gas transportation system. Algeria's energy sector remains attractive to foreign investors. As part of Sinopec's agreements with Eni, as well as the Occidental/Eni/TotalEnergies consortium, it is planned to attract investments of up to $6 billion to develop new fields, improve the extraction of crude oil, condensate, LPG and natural gas, as well as to extend the life of existing fields. It should be noted that after the rupture of relations with Morocco in December 2021, Italy became the only passage for Algerian gas to the Old Continent [7].
It should be noted that Algeria, defining priority areas of cooperation with European energy companies, relies on the development of high-tech industries. Algeria has adopted a national roadmap for the development of environmentally friendly hydrogen production in order to launch pilot projects in the medium term, including the use of international pipeline networks between Algeria and Europe to transport hydrogen, and the use of solar energy potential for production. To this end, a memorandum was signed with two German companies (H&R Group, VNG AG) on cooperation in the field of environmentally friendly hydrogen production and oil refining. At this stage, the parties are exploring the possibilities of cooperation for the implementation of projects in the field of hydrogen and environmentally friendly ammonia production with a view to exporting them to Germany. However, the Algerian side takes a restrained position regarding this project, emphasizing that the gas transportation system will be used at the initial stage to export additional volumes of Algerian gas to EU countries until a real and competitive market for green hydrogen and green ammonia appears [8].
Thus, joint projects for the extraction of hydrocarbons have significant potential for the further development of the fuel and energy complex of both countries. In the context of the adoption by some participants of the global energy market of policies aimed at avoiding the use of hydrocarbons, launching a mechanism for joint gas purchases that limit competition, as well as other financial and regulatory measures that restrain the development of traditional energy, Russia and Algeria have the necessary political and expert resources to conduct joint discussions on determining the export policy of the countries and developing joint mechanisms for protecting the interests of energy suppliers. The international climate agenda is creating new requirements for energy market participants. In addition, in the near future, against the background of strengthening cooperation between countries in the energy sector, it is advisable to pay attention to the development of the institute of intellectual property as one of the tools to protect the interests of copyright holders in the development and implementation of innovative products.
The Sonatrach Group plays an extremely important role in the Algerian economy. Its subsidiary Asmidal, providing the production of fertilizers and phytosanitary products, makes a significant contribution to the development of agriculture. This area is also of obvious interest for the Russia—Algeria dialogue. Starting in 2020, Algeria, in an effort to diversify sources of grain supplies, reduced wheat imports from France by 50% and refocused on Russian and Ukrainian suppliers. In the current circumstances, fearing the risk of supply disruptions, Algeria has stepped up actions aimed at expanding the production of agro-industrial goods on its territory. The Algerian companies Sim and Amor Benamor were tasked with optimizing production and stocks of vital products. Experts note that the government has accelerated the implementation of structural reforms, providing support to agriculture and the agro-industrial sector. Political support for Russian imports fully meets the goals of ensuring food security.
Thus, Russia and Algeria have an undeniable potential for the development of joint trade and production. A shortage of qualified personnel and a limited labor market may become a barrier to achieving the deadlines for the implementation of large investment projects. To ensure stable and mutually beneficial cooperation in various sectors of the economy, it is important to ensure timely training of qualified personnel, realizing that the implementation of educational and research projects, as a rule, requires significant material costs. Given the long-standing strategic partnership between the countries, we can expect the intensification of scientific and practical research in the field of energy, pharmaceuticals, agriculture and others, including through the creation of joint platforms bringing together representatives of regulatory authorities, manufacturing companies and scientists. A special role in this dialogue should be given to young scientists, formulating targeted programs to support science and education.
List of sources
1. Le Président de la République depuis Moscou : l’Algérie connait une renaissance économique sans précédent // https://www.dknews-dz.com/article/171647-le-president-de-la-republique-depuis-moscou-lalgerie-connai..., 14.06.2023.
2. Algeria has applied to join the BRICS // https://www.rbc.ru/politics/07/11/2022/63692aee9a7947f89364a88b , 07.11.2022.
3. Rapport de suivi de la situation économique en Algérie: Maintenir le cap de la transition // https://documents1.worldbank.org/curated/en/099521001042311492/pdf/IDU04c80cab60e1b5043f90af9105c50f..., Automne 2022.
4. Russian pharmaceutical manufacturers are looking at the Algerian market // GMP News, 2019, No. 3 (20), pp. 16-18, https://gilsinp.ru/?wpfb_dl=395 .
5. Le PDG de Sonatrach plaide pour des contrats à plus long terme // https://lalgerieaujourdhui-dz.translate.goog/le-pdg-de-sonatrach-plaide-pour-des-contrats-a-plus-lon..., 08.03.2023.
6. Giorgia Meloni à Alger pour lancer sa politique méditerranéenne // https://www.lemonde.fr/international/article/2023/01/24/giorgia-meloni-a-alger-pour-lancer-sa-politi..., 24.01.2023.
7. L’Algérie est-elle officiellement amie ou ennemie de la Russie? // https://www.slate.fr/story/226272/algerie-russie-diplomatie-guerre-ukraine-position-politique-wagner..., 13.04.2022.
8. Algerian Energy Minister criticized Europe's decision to set a ceiling on gas prices // https://riafan.ru/23810454-ministr_energetiki_alzhira_raskritikoval_reshenie_evropi_ustanovit_potolo... , 12/21/2022.
Expert analytical opinions based on the results of the sessions of the business program of the Forum and any recommendations provided by experts and published on the website of the Roscongress Foundation are an expression of the opinion of these experts, based, among other things, on their interpretation of the current legislation, on which the conclusion is given. This point of view may not coincide with the point of view of the management and/or specialists of the Roscongress Foundation, representatives of tax, judicial, and other regulatory authorities, as well as with the opinion of third parties, including other specialists. The Roscongress Foundation is not responsible for the inaccuracy of the published data and any possible losses incurred by individuals as a result of applying the published conclusions and following such recommendations.
Yana Klementovicius
The history of Russia's cooperation with the states of the African continent, in particular with Algeria, covers a significant time period, but the policy and development of economic relations have not yet reached a mature level. It should be particularly mentioned that Russia and Algeria celebrated the 60th anniversary of the establishment of diplomatic relations. Taking into account the complex and contradictory nature of transformational processes in the global economy and geopolitics, the leaders of the two countries declared their mutual desire to develop an effective strategic partnership, ensuring mutually beneficial cooperation in such important sectors as energy, pharmaceuticals, agriculture, high technology, and others. Historically, the relations between the two countries are based on the principles of friendship and trust. By defining the vectors of long-term development in partnership with Russia, Algeria is shaping its image as a reliable partner with a wide range of new promising projects for the development of mutually beneficial cooperation between the two countries. "Algeria is experiencing an unprecedented economic recovery," Mr. Tebboune told Russian businessmen at a meeting [1].
The discussion with the participation of representatives of ministries and business circles took place at the SPIEF 2023 site the day after the significant meeting of the presidents of the two countries - Vladimir Putin and Abdelmadjid Tebboune — in the Kremlin as part of the official visit of the Algerian delegation to Moscow. The visit resulted in the signing by the heads of the two states of the Declaration on In-depth Strategic Partnership, which consolidated a wider range of areas of cooperation compared to the 2001 document, including deepening military cooperation, support for the use of national currencies in trade, as well as coordination of actions in international energy organizations (OPEC+, the Forum of Gas Exporting Countries and others).
The current historical moment for Russia is characterized by the expansion of dialogue with countries in both North Africa and the Middle East. The emergence of a new pole of development around the economic ambitions of the Arab world, in particular the UAE, Saudi Arabia, Qatar and others, creates uncertainty for Algeria, which will have to make additional efforts to maintain its investment attractiveness. Algeria continues to play a significant role in the Mediterranean, African and Arab space, despite the fact that it is not possible to fully realize this role due to regional instability and against the background of deteriorating relations with neighboring States, for example with Morocco. For Algeria, the campaign to join the BRICS forum (Brazil, Russia, India, China and South Africa) takes on a special meaning at the current historical moment. Given the growing interest from developing countries in BRICS, at the end of 2022 Algeria submitted an official application to join the organization along with Iran and Argentina. Turkey, Egypt and Saudi Arabia have also expressed interest in membership in BRICS [2]. Russia supports Algeria's candidacy, which was officially announced at the SPIEF. The motivation for membership in the BRICS was the desire to avoid participation in "bipolar conflicts". Do not forget that Algeria remains a major exporter of oil and gas, with the EU and China remaining the main buyers of energy resources. It can be assumed that the country will strive to obtain certain preferences in the export of oil and gas in the space of the BRICS member countries. In many ways, this motivation is related to long-term development plans and the need to attract significant investments in the oil and gas sector to develop new fields and increase capacities for processing hydrocarbons. To a certain extent, Algeria's joining of BRICS in parallel with Saudi Arabia can exacerbate competition between major energy suppliers, unless they build relations on the principles of mutual trust and mutually beneficial conditions.
Over the past few years, the Russian side has consistently supported Algeria's desire to become the leading regional industrial and energy center of North Africa in the medium term. The work of the Joint Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation resulted in cooperation programs (roadmaps) in the fields of industry, transport, construction, geology, agriculture, healthcare, science, space and computer technology and in other sectors, which determined the vector of mutual interests.
It is important to emphasize the similarity of the views of Russia and Algeria on a number of issues on the international agenda: both countries advocate further strengthening the role of the UN and the Security Council in maintaining peace and security in a multipolar world. The stable development of Algeria and the achievement of socio-economic development goals will largely depend on reducing tensions in the region and resolving conflicts in Syria, Libya, Yemen and Mali. It should be added that, despite the extremely difficult historical legacy associated with the Algerian liberation war, France continues to influence regional dynamics and strives to maintain its role in determining the regional agenda. Realizing that France alone would not be able to hold the initiative, the diplomats proposed a new "3 + 3" political structure, implying a dialogue between North and South: between France, Spain and Italy on the one hand and Algeria, Morocco and Tunisia on the other. However, experts note the utopian nature of such a position due to the numerous conflicts and mismatch of interests of the countries in question, each of which relies on the development of bilateral relations.
Thus, the task of developing and bringing Russian-Algerian relations to a qualitatively new level will be solved in difficult geopolitical conditions characterized by increasing regional tensions.
Today, an intensive dialogue is underway at the level of the heads of ministries and departments of Russia and Algeria, who are interested in expanding partnership and emphasize their high readiness to implement joint infrastructure projects. Russia's position and the choice of priority areas for the development of bilateral business relations indicate the strategic importance of developing joint projects in both the raw materials and non-raw materials sectors. During the session, a wide range of areas for cooperation was identified, let's look in more detail at the example of the pharmaceutical and energy industries.
Algeria is one of Russia's leading trading partners in Africa, with trade volume of $3 billion in 2022. Algeria ranks third in terms of trade turnover with Russia among African countries, while the potential for trade and economic cooperation has not been exhausted. According to the Algerian Economic Situation Monitoring Report published by the World Bank [3], Algeria's economy is expected to grow by 2.3% in 2023, but the macroeconomic outlook will be under pressure from global hydrocarbon prices. This can explain the Algerian side's desire to more actively develop the private sector in the medium and long term, initiate projects not related to hydrocarbons, considering them as an engine of economic growth and economic diversification. Further implementation of national structural reform programs, increased openness to the private sector, increased competitiveness of the economy and increased investment in human capital also remain important factors for ensuring the viability and sustainability of the Algerian economy, as well as the basis for the development of Russian-Algerian relations.
There has been a positive trend in a number of areas of cooperation, and thanks to the high motivation and involvement of the leadership of the two countries, administrative barriers have been removed and special preferences have been identified for the implementation of a number of large investment projects.
The pharmaceutical industry in Russia represents one of the key segments of the development of non-primary exports. Despite the fact that the importance of cooperation in the field of both healthcare and the export of Russian medicines was regularly emphasized at the government level, according to REC data, pharmaceutical products worth 43 thousand US dollars were exported to Algeria in 2018 [4]. According to experts, such an insignificant figure is due to ignorance of the specifics of one of the largest African markets. The situation began to change due to the proactive position of the Algerian side, which offered Russian companies a number of preferences for export and localization of production in the country. In particular, when organizing a full production cycle on Algerian territory, one can expect to limit or completely ban the import of similar products. When conducting tender purchases of medicines, products manufactured at enterprises localized in Algeria receive 25% of the price preference. However, despite such measures, foreign manufacturers (Pfizer, GlaxoSmithKline, Sanofi, El Kendi and Hikma, Novo Nordisk and others) controlled about 38% of the Algerian market in 2018. The accelerated development of joint cooperation between the pharmaceutical industries of Russia and Algeria testifies to mutual trust, which allowed in a limited time to implement an anchor project with the participation of the Russian company Geropharm on technology transfer and ensure the production of insulin analogues at the plant of the Algerian state pharmaceutical company Saidal Industrial Group. The Russian side announces plans to launch new production facilities in Algeria in 2024, which confirms mutual interest and reflects the readiness of the Russian pharmaceutical industry to expand the supply of domestic insulin preparations through technology transfer and localization of production in Algeria. In the medium term, the implementation of similar projects outside Russia will meet the growing demand for domestic drugs from countries in Africa, the Middle East, Asia and Latin America. In order to further expand the export of medicines and localized production, it is important to increase competencies in the field of the specifics of the functioning of local markets, as well as in the field of product certification, procedures for checking production sites for compliance with the GMP standard, quality control of pharmaceutical products, including the results of clinical trials, as well as pricing. Thus, the progress achieved in the implementation of joint projects in the field of pharmaceuticals confirms the willingness of both sides to create mutually beneficial conditions, use tax, customs and other mechanisms for the implementation of major investment projects.
Energy and mining are also among the priority sectors. The implementation of successful projects in North Africa is of strategic interest to Russian business and opens up access to the Mediterranean market, which is important for Russia. Given that Algeria remains one of the key suppliers of energy resources, relations and joint projects between Algeria and Russia in the energy sector are certainly in competition with European interests. The conflict of interests escalated after the start of the CBO and the spread of sanctions on the Russian oil and gas sector, which significantly limited the supply of energy resources to EU countries. The Algerian side reacted negatively to the decision of the European Commission to set a ceiling on natural gas prices, believing that such actions are unilateral and aimed at destabilizing world markets. In the context of growing international tensions, on the contrary, the availability of open, transparent and unlimited energy markets is a crucial condition for the sustainable development of many countries, while the ceiling on natural gas prices may threaten the security and stability of energy markets.
Represented by the state oil and gas company Sonatrach, the Algerian side supports the idea of developing relations in the energy sector on the basis of long-term contracts. "We still believe that only an understanding of market behavior and future demand for natural gas can support investment policies in capital-intensive gas projects," Hakkar said. Sonatrach plans to supply more than 110 billion m3/year of natural gas to the market by 2027 to meet both domestic demand and export obligations. Today, Algeria provides about 11% of gas imports to Europe and could increase supplies in the long term, despite the fact that the possibilities of increasing energy exports are currently limited.
Algeria has historical ties with Italy, thanks to the gas transportation system. Trying to increase gas imports from Africa, Italy is striving to become an "energy hub". "Faced with the great energy crisis that Europe is experiencing, Algeria could become a leader in production, of course, in Africa, but perhaps also in the whole world. Italy is inevitably the gateway to this energy and to the supply of Europe," Ms. Meloni outlined her position during an official visit to Algeria in January 2023 [6]. It is important to add that during the visit, agreements were signed with Eni providing for the expansion of Algeria's export capacity to Europe, including the development of a gas transportation system. Algeria's energy sector remains attractive to foreign investors. As part of Sinopec's agreements with Eni, as well as the Occidental/Eni/TotalEnergies consortium, it is planned to attract investments of up to $6 billion to develop new fields, improve the extraction of crude oil, condensate, LPG and natural gas, as well as to extend the life of existing fields. It should be noted that after the rupture of relations with Morocco in December 2021, Italy became the only passage for Algerian gas to the Old Continent [7].
It should be noted that Algeria, defining priority areas of cooperation with European energy companies, relies on the development of high-tech industries. Algeria has adopted a national roadmap for the development of environmentally friendly hydrogen production in order to launch pilot projects in the medium term, including the use of international pipeline networks between Algeria and Europe to transport hydrogen, and the use of solar energy potential for production. To this end, a memorandum was signed with two German companies (H&R Group, VNG AG) on cooperation in the field of environmentally friendly hydrogen production and oil refining. At this stage, the parties are exploring the possibilities of cooperation for the implementation of projects in the field of hydrogen and environmentally friendly ammonia production with a view to exporting them to Germany. However, the Algerian side takes a restrained position regarding this project, emphasizing that the gas transportation system will be used at the initial stage to export additional volumes of Algerian gas to EU countries until a real and competitive market for green hydrogen and green ammonia appears [8].
Thus, joint projects for the extraction of hydrocarbons have significant potential for the further development of the fuel and energy complex of both countries. In the context of the adoption by some participants of the global energy market of policies aimed at avoiding the use of hydrocarbons, launching a mechanism for joint gas purchases that limit competition, as well as other financial and regulatory measures that restrain the development of traditional energy, Russia and Algeria have the necessary political and expert resources to conduct joint discussions on determining the export policy of the countries and developing joint mechanisms for protecting the interests of energy suppliers. The international climate agenda is creating new requirements for energy market participants. In addition, in the near future, against the background of strengthening cooperation between countries in the energy sector, it is advisable to pay attention to the development of the institute of intellectual property as one of the tools to protect the interests of copyright holders in the development and implementation of innovative products.
The Sonatrach Group plays an extremely important role in the Algerian economy. Its subsidiary Asmidal, providing the production of fertilizers and phytosanitary products, makes a significant contribution to the development of agriculture. This area is also of obvious interest for the Russia—Algeria dialogue. Starting in 2020, Algeria, in an effort to diversify sources of grain supplies, reduced wheat imports from France by 50% and refocused on Russian and Ukrainian suppliers. In the current circumstances, fearing the risk of supply disruptions, Algeria has stepped up actions aimed at expanding the production of agro-industrial goods on its territory. The Algerian companies Sim and Amor Benamor were tasked with optimizing production and stocks of vital products. Experts note that the government has accelerated the implementation of structural reforms, providing support to agriculture and the agro-industrial sector. Political support for Russian imports fully meets the goals of ensuring food security.
Thus, Russia and Algeria have an undeniable potential for the development of joint trade and production. A shortage of qualified personnel and a limited labor market may become a barrier to achieving the deadlines for the implementation of large investment projects. To ensure stable and mutually beneficial cooperation in various sectors of the economy, it is important to ensure timely training of qualified personnel, realizing that the implementation of educational and research projects, as a rule, requires significant material costs. Given the long-standing strategic partnership between the countries, we can expect the intensification of scientific and practical research in the field of energy, pharmaceuticals, agriculture and others, including through the creation of joint platforms bringing together representatives of regulatory authorities, manufacturing companies and scientists. A special role in this dialogue should be given to young scientists, formulating targeted programs to support science and education.
List of sources
1. Le Président de la République depuis Moscou : l’Algérie connait une renaissance économique sans précédent // https://www.dknews-dz.com/article/171647-le-president-de-la-republique-depuis-moscou-lalgerie-connai..., 14.06.2023.
2. Algeria has applied to join the BRICS // https://www.rbc.ru/politics/07/11/2022/63692aee9a7947f89364a88b , 07.11.2022.
3. Rapport de suivi de la situation économique en Algérie: Maintenir le cap de la transition // https://documents1.worldbank.org/curated/en/099521001042311492/pdf/IDU04c80cab60e1b5043f90af9105c50f..., Automne 2022.
4. Russian pharmaceutical manufacturers are looking at the Algerian market // GMP News, 2019, No. 3 (20), pp. 16-18, https://gilsinp.ru/?wpfb_dl=395 .
5. Le PDG de Sonatrach plaide pour des contrats à plus long terme // https://lalgerieaujourdhui-dz.translate.goog/le-pdg-de-sonatrach-plaide-pour-des-contrats-a-plus-lon..., 08.03.2023.
6. Giorgia Meloni à Alger pour lancer sa politique méditerranéenne // https://www.lemonde.fr/international/article/2023/01/24/giorgia-meloni-a-alger-pour-lancer-sa-politi..., 24.01.2023.
7. L’Algérie est-elle officiellement amie ou ennemie de la Russie? // https://www.slate.fr/story/226272/algerie-russie-diplomatie-guerre-ukraine-position-politique-wagner..., 13.04.2022.
8. Algerian Energy Minister criticized Europe's decision to set a ceiling on gas prices // https://riafan.ru/23810454-ministr_energetiki_alzhira_raskritikoval_reshenie_evropi_ustanovit_potolo... , 12/21/2022.
Expert analytical opinions based on the results of the sessions of the business program of the Forum and any recommendations provided by experts and published on the website of the Roscongress Foundation are an expression of the opinion of these experts, based, among other things, on their interpretation of the current legislation, on which the conclusion is given. This point of view may not coincide with the point of view of the management and/or specialists of the Roscongress Foundation, representatives of tax, judicial, and other regulatory authorities, as well as with the opinion of third parties, including other specialists. The Roscongress Foundation is not responsible for the inaccuracy of the published data and any possible losses incurred by individuals as a result of applying the published conclusions and following such recommendations.
Yana Klementovicius
