Export of grain from Ukraine – Egypt will buy wheat at a higher price

Egypt did not refuse to buy 240 thousand tons of Ukrainian wheat, as previously reported by Reuters. According to the vice-president of the Chamber of Commerce and Industry (CCI) of Ukraine Mikhail Nepran, Egypt did not terminate the supply contract – it was only decided to re-sign it due to the lack of provisions on the actions of the parties in the event of force majeure, which was the blockade of Ukrainian seaports by the Russians. Nepran stated this on the air of the Hromadske TV channel with reference to the Ukrainian Ambassador to Egypt Mykola Nagorny and information received from grain traders.

“Indeed, the contract was signed. Yes, the Ukrainian side, due to the blockade of ports, could not fulfill it in a timely manner. It turned out that they did not have a clause on the existence of force majeure in the agreement. If there was such a clause, they would come to the CCI , we would issue them a certificate, and this would be the basis for them to extend the term of the contract without penalty,” he said.

As a result, Ukraine and Egypt decided to close this contract with impossible conditions and conclude a new agreement, according to which the purchase of wheat will be carried out.

“As our ambassador to Egypt, Nikolay Nagorny, told me, the Egyptian side officially assured him that it would in no way refuse to cooperate with Ukraine, that they understood the situation with the blocking of ports, and Egypt was ready to work with Ukraine in the future and purchase grain,” the representative of the Chamber of Commerce and Industry emphasized.

The contract for the supply of 240 thousand tons of wheat was signed at the end of 2021, and deliveries were to take place in March-April of this year. During this time, the cost of grain has changed significantly, which will be reflected in the new contract.

“Our grain traders told me that they are even happy about this situation, because when the agreement was signed last December, the price was about $250 per ton. Now the price has almost doubled. That is, from an economic point of view, it has even become more profitable for them, after all, the new contract will be signed at a different price, that is, everyone was shouting that it was “zrada”, but it turned out to be “a win,” summed up Nepran.

Read also: The first vessel with grain left the port of Odessa: Turkish and Ukrainian sources diverged over time

Grain Agreement

On the evening of July 22, Ukraine, Turkey and Russia, with the support of the UN Secretary General, agreed to ensure a safe export of grain from Ukrainian ports “Odessa”, “Chernomorsk” and “Yuzhny” within 120 days with the possibility of extending this period. Thanks to the agreement, it is planned to export about 20 million tons of last year’s grain harvest.

“The parties will not make any attacks on merchant ships and other civilian ships and port facilities participating in this initiative,” the document said.

On the morning of July 23, Russia struck four missile attacks on Odessa. Two missiles were shot down by anti-aircraft defense, two others hit the infrastructure of the port (in particular, a pumping station), a fire broke out. The grain storage was not damaged.

On July 28, Reuters announced that Egypt had abandoned a contract to buy 240,000 tons of wheat from Ukraine, signed before the full-scale Russian invasion. According to the report, Egypt could buy the grain it needed from Russia.

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