Egypt canceled pre-war contracts with Ukraine for the supply of grain. They are booked for delivery in February and March, but were not shipped due to the outbreak of hostilities in Ukraine.
According to Reuters, Egypt canceled contracts for 240 thousand tons of Ukrainian wheat, which were booked by the state buyer of grain for delivery in February/March, but were never shipped. Earlier, the publication reported that about 300 thousand tons of wheat purchased by Egypt were stuck in Ukraine: one cargo was in the port, four more were not loaded.
Egypt’s General Directorate for the Supply of Goods of Egypt (GASC) released the trading companies supplying the four unloaded cargoes, Nibulon and Inerco, from their contractual obligations, sources say. This decision was made despite the fact that GASC contracts do not contain a force majeure clause.
The four canceled shipments were purchased in December at prices ranging from $346 to $360 per ton, including shipping costs, traders said at the time. After the war accelerated the growth of world grain prices in April, GASC paid $494.25 per tonne of wheat.
According to traders, the fifth cargo loaded but stuck in the port will sail away after receiving a “green light” from port officials. Last week Ukraine, Turkey, UN and Russia signed an agreement on the resumption of exports of grain and fertilizers across the Black Sea. This agreement will be valid for 120 days from the date of signing and can be extended for a similar period automatically. Each party has the right to notify the other of its intention to terminate the initiative after the end of its term or change the conditions.
It is not known if the GASC contracts were canceled before the agreement to resume delivery was signed.
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