Investment cooperation between Russia and Algeria does not fully use its potential yet

ALGERIA, October 10. /TASS/. Investment cooperation between Russia and Algeria is not developing and does not fully use its potential, which is chiefly connected to structural similarity between the two countries’ economies due to the statutes of Algerian law, according to the documents for Russian Prime Minister Dmitry Medvedev’s working visit to Algeria on October 9-10. "Investment cooperation between Russia and Algeria is not developing. The parties admit that the existing level of trade and economic cooperation still does not correspond to the two countries’ potential. The main reason is structural similarity between our economies," the materials say. The document also says that the investment situation was influenced by Algeria’s associate membership in the European Union and its participation in the Arab Free Trade Area, local statutes that set for newly established financial companies obligatory participation of Algeria with a share of at least 51% and the existence of a 30% to 80% excess profit tax in any sphere of activity. Still, according to the documents, the Algerian side was interested in cooperation with Russia at the last intergovernmental commission on trade and economic cooperation on September 18-20: cooperation with Russian oil and gas companies, including establishment of a joint center for geophysical data processing and interpretation, joint oil rig enterprise in Algeria, development of cooperation in petrochemistry and oil refining and cooperation in the sphere of renewable sources of energy and energy efficiency. The parties also discussed possible construction of a Russian-designed nuclear power station. Read more