MOROCCO

Trade turnover in 1998 amounted to US million, which was 8.5% below the 1997 level, but is 34.5% higher than the average annual index for the past five years (US million). Compared with 1997, Russian exports to Morocco decreased by 37% and amounted to US million.

The main reasons for the decrease in Russian exports in 1998 were the two-fold decrease in physical terms and 2.9-fold decrease in value terms for oil export to Morocco, as well as the termination in deliveries of complete sets of technical equipment and materials due to completion of the construction of the Al Vahda Hydroelectric Power Plant. The cost of deliveries of technical engineering products and construction and assembly work carried out decreased 4.3-fold compared with 1997 and amounted to US million. The specific percentage of machinery, equipment and services rendered in the total volume of Russian exports to Morocco amounted to 5.2%, against 14.1% in 1997.

In 1998, the list of raw materials exported by Russia did not significantly change, and their percentage of the export cost amounted to 94.9%. As before, the Moroccans do not purchase Russian oil directly from domestic exporters, but through international agents (in 1998, 465,000 tons amounting to US million).

In 1998, the volume of Russian rolled metal exported to Morocco increased (220,000 tons), which is 2.6-fold higher than the 1997 figure. The physical volumes of paper and cardboard deliveries have significantly increased (3.2-fold), dressed timber (1.5-fold) and ammonia (1.3-fold). The volume of synthetic rubber deliveries remains at the level of previous years. The export of carbamide has decreased (2.2-fold), sulfur (2.1-fold) and ammonium nitrate (1.2-fold).

In 1998, the negative trends characteristic of the past few years in Russian raw material exports to Morocco continued: instability, narrow range of products and declining competitiveness of many types of Russian raw materials. Three Moroccan buyers, The Royal Oil Society (crude oil), the Royal Phosphates Department (ammonia, chemical fertilisers, sulfur), and the Moroccan branch of the German Mannesman Company (rolled metal) account for 95.3% of the total volume of Russian raw material exports.

Russian export deliveries of raw materials to Morocco still depend on the services of international agents.

The volume of Russian imports in 1998 compared with 1997 in value terms increased 2.1-fold and amounted to US million (the highest figure for the past ten years). The main item of imports from Morocco is still citrus products. Shipments of oranges and clementines are carried out by the Atlas Fruit Board, the leading exporter of Moroccan citrus fruit and early vegetables. A total of 179,600 tons of citrus fruit amounting to US million and 43,200 tons of vegetables to US million have been delivered to Russia. Purchases of Moroccan canned sardines (27 tons), agar-agar (40 tons), fresh and fresh-frozen fish (23 tons) continue.

The main cooperation project in 1998 was still the Al Vahda hydroelectric complex, the second largest in Africa after Aswan. Its dam, equipment and all three power units are in warranty operation. The facility operates continuously, providing 30% of the electricity produced by all the country's power stations, which demonstrates the high quality of Russian equipment and work carried out. The construction and assembly work carried out under contract by Tekhnopromexport in 1998 amounted to US million. Only 65 million ecu of the state loan of 100 million ecu granted by the Russian side to finance construction was used in the project.

Morocco, being a solvent country, is conscientiously fulfilling its financial obligations to Russia, having no overdue debts. In 1998, five joint ventures operated in Morocco with Russian shares: Maruspencia (transportation construction), Komegi (extraction and reprocessing of gypsum), Magrus (well drilling for water), Frubag Maroc (deliveries of farm machinery), and Electronics Engineering (import and assembly of electronic equipment for the textile and sewing industry). The total volume of work carried out by the above joint ventures is estimated at US million. Most of them are experiencing serious difficulties associated both with the sluggish market situation and with organisational problems.

Cooperation in training Moroccan specialists is continuing, within the framework of which and under contract with Tehnostroiexport, 31 Russian vocational training instructor were working in Morocco by the end of 1998.

Within the framework of the Intergovernmental Agreement on Sea Fishing of 28 December 1995, 10 Russian fishing boats were engaged in commercial fishing in 1998. Licensed fishing yielded 65 tons of fish. On 25 November 1998, a protocol on extending the term of the above agreement for one year was signed in Moscow. At the same time, the sides agreed to set the quota and number of boats at 90,000 tons and 12 boats.

Aeroflot provided passenger flight services on the Moscow-Casablanca route (with a stop in Malta) until November 1998. The winter season is unprofitable for the airline company. Direct Aeroflot flights along the above-mentioned route were to be renewed on 1 April 1999. Shipments of freight from Russia to Morocco and back are carried out by freight charters, most frequently foreign.

According to the results of 1998, Russian deliveries to Morocco amounted to 1.7% of all of Morocco's imports. Russian purchases in Morocco amounted to 2.4% of Morocco's total exports. Correspondingly, Russia's share in Morocco’s foreign trade compared with 1997 has not significantly changed and amounts to approximately 2%.