Egypt plans to purchase grain from Kazakhstan to replace Russian one - Reuters
Egypt wants to buy cheaper grain from Kazakhstan (photo: GettyImages)
Egypt's government seeks a cost-effective alternative to Russian grain. Egypt is in talks with Abu Dhabi commercial bank for a loan to finance wheat purchases from Kazakhstan, according to Reuters.
Currently, Egypt is the world's largest wheat buyer and aims to reduce its import costs. Reuters reports that negotiations for a credit deal for wheat procurement from Kazakhstan are in their initial stages.
Furthermore, discussions are ongoing regarding the price and quantity of wheat. The General Authority for Supply Commodities is also negotiating a price that may be lower than the unofficial minimum price set by the Russian government, believed to be established at $270 per metric ton in a tender.
As reported by Reuters, Russia's Ministry of Agriculture recently blocked a private sale of 480,000 tons of Russian wheat to Egypt, presumably because it was sold below the minimum price.
Russia's exit from the grain deal
In July, Russia announced its withdrawal from the "grain deal" citing alleged non-compliance with its terms. Egypt criticized the aggressor country for leaving the export agreement and stated that it would continue to import Ukrainian wheat through alternative routes.
In August, Ukraine declared the opening of temporary corridors for trade ships in the Black Sea. These routes were primarily intended for the exit of civilian vessels that had been in Ukrainian ports since the beginning of Russia's full-scale invasion.
The first cargo ship, Resilient Africa, which departed from a Ukrainian port with grain, had also earlier reached the Bosporus. Now, two ships have managed to break through Russia's blockade of the Black Sea using the temporary corridors.
