Egypt approves replacement for detained Ukrainian wheat cargo – sources

By Sarah El Safty

CAIRO (Reuters) – Egypt’s state grains purchaser has agreed to interchange a detained Ukrainian wheat cargo with a brand new 60,000-tonne cargo, in keeping with two folks with data of the matter, following weeks-long negotiations to both free or substitute the cargo.

The Common Authority for Provide Commodities (GASC) will purchase a brand new cargo of Russian or Ukrainian wheat from the identical provider, Olam, at a worth of $361.25 per tonne on a price and freight foundation, one of many folks added.

That’s the identical worth that was agreed for the unique 60,000 tonne cargo, the particular person stated. The brand new cargo might be shipped between Sept. 15 and Oct. 15.

The unique cargo was bought by GASC in a December tender for cargo in February however has been caught on board a vessel named Emmakris III on the port of Chornomorsk since Russia’s invasion of Ukraine on Feb. 24. The ship was detained in July on the request of Ukraine’s prosecutor common to analyze its alleged Russian possession.

In August, Ukraine’s Center East envoy stated Ukrainian officers have been working to launch the ship.

Within the case of incapacity to ship a cargo, GASC’s tender e book requires suppliers to fulfil contractual amount from an alternate origin as GASC’s tender e book doesn’t include a provision for power majeure.

GASC, nevertheless, did launch suppliers of 4 Ukrainian wheat cargoes purchased earlier than the conflict however by no means loaded on a vessel from their contractual obligations in July.

Each folks with data of the matter stated GASC cancelled its contract with GTCS, the shipper of the older cargo. The brand new settlement with Olam would free GASC of any extra prices, in addition to any duty in direction of the older cargo, certainly one of them added.

The provision ministry didn’t reply to a request for remark.

Egypt’s strategic wheat reserves presently stand at 6.6 months, Provide Minister Ali Moselhy stated on Monday.

(Reporting by Sarah El Safty; Modifying by Aidan Lewis, Alexandra Hudson)