Reuters: Egypt canceled contracts for 240 000 tons of Ukrainian wheat

Author:
Anna Kholodnova
Date:

Egypt canceled contracts for 240 000 tons of Ukrainian wheat, which it booked in February and March.

This was reported by Reuters with reference to its own sources.

The contracted grain was never shipped due to the full-scale Russian invasion of Ukraine. According to journalists, Egypt has canceled agreements on four out of five consignments of grain. The General Authority for the Supply of Goods of Egypt (GASC) released the Ukrainian companies "Nibulon" and Inerco from their obligations to supply grain, despite the fact that there is no force majeure clause in the GASC contracts.

On July 22, Ukraine and Russia signed an agreement on grain export with Turkey and the UN. Journalists could not establish when GASC canceled the contracts — before the signing of the "grain agreement" or after.

According to traders, the fifth grain cargo for Egypt is in the Ukrainian port of Chornomorsk and is waiting to be shipped.

  • In May, Reuters reported that about 300 000 tons of Ukrainian wheat bought by Egypt were blocked in Ukraine, with one shipment at the port and four others yet to be loaded.
  • On July 23, the day after the signing of the agreement on the export of grain from Ukraine, the Russians attacked the Odesa sea trade port with Kalibr cruise missiles. The Air Defense Forces shot down two missiles, and two more hit the infrastructure of the port. There was grain that was being prepared for export. The rockets did not hit the grain storage, but hit the pumping station, causing a small fire. There was no significant destruction, and no casualties. The Russian Ministry of Defense confirmed the attack on the port of Odesa.
  • After the Russian shelling, the Minister of Infrastructureб Oleksandr Kubrakovб stated that Ukraine continues technical preparations for the launch of the export of agricultural products from its ports even under the conditions when Russia is not going to fulfill its obligations.