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Egypt terminates contracts for purchase of 240,000 tonnes of Ukrainian wheat — agency

Four batches of wheat were purchased in December 2021 at a price of from 346 to 360 US dollars per tonne, including the cost of shipment

LONDON, July 28. /TASS/. Egypt’s authorities have relieved several companies of their liabilities under contracts for the purchase of Ukrainian wheat bought back in December 2021, Reuters said on Wednesday citing two sources.

According to the agency, Egypt’s General Authority For Supply Commodities (GASC) has relieved Nibulon and Inerco companies of their contract liabilities on the dispatch of four batches of wheat, despite the absence of the force majeure provisions in their contracts. Four batches of wheat were purchased in December 2021 at a price of from 346 to 360 US dollars per tonne, including the cost of shipment. In April 2022, Egypt paid 494.3 US dollars per one tonne of wheat. The fifth batch has been stuck in Ukraine’s port of Chernomorsk but is expected to be shipped upon the permit of the port’s administration.

Egypt is the world’s biggest importer of wheat, with some 11-13 million tonnes being purchased abroad yearly. This volume satisfies only half of the country’s demand whereas the rest is produced domestically. Russia and Ukraine are the biggest grain exporters. Combat operations in Ukraine and the European Union’s and the United States’ large-scale anti-Russian sanctions have entailed breaks in key grain supply chains.

Meanwhile, a joint coordination center on safe shipment of grain from Ukraine, set up under the agreements reached by Russia, Ukraine, Turkey and the United Nations on July 22, began its operation in Istanbul on Wednesday. According to Turkish Defense Minister Hulusi Akar, it is planned to export more than 25 million tonnes of grain from Ukraine via the grain corridor.