Egypt ready to re-export Russian wheat if Moscow establishes Suez Canal logistics hub

CAIRO - 21 August 2023: The General Authority for Supply Commodities (GASC), affiliated with the Egyptian Ministry of Supply, has affirmed its readiness to re-export Russian wheat to neighboring countries if Moscow establishes a global logistics distribution center in the Suez Canal region.

 

GASC stated to the Russian news agency "Novosti" that Egypt might increase its purchases of Russian wheat and subsequently re-export wheat and other grains to neighboring countries if a logistics distribution center is established in the Suez Canal Economic Zone.

 

The Authority envisions that the logistics center in the economic zone will serve as a hub for storing and trading wheat and other grains not only in Egypt and the Arab region but also in North and East Africa, as reported by the Russian platform "RT."

 

Regarding the extent of Egypt's impact from Russia suspending its grain deal, the Ministry stated that "Egypt, like other importing countries, is affected by the rise and fluctuations in global wheat prices."

 

According to the Ministry, Egypt signed a contract to purchase 360,000 tons of Russian wheat on August 2nd to bolster its strategic stockpile, with shipping planned between September 1st and 10th.

 

It is worth noting that the grain agreement was initiated by Ankara and includes Russia, Ukraine, and the United Nations.

 

The agreement stipulates that Russia allows the export of Ukrainian grain through a humanitarian corridor opened by the Russian fleet in the Black Sea, provided that Russian grains and fertilizers gain access to the market.

 

Russia is demanding the removal of Western restrictions on its exports of fertilizers, oils, and agricultural products in exchange for extending the grain agreement, which was renewed on July 17th.