Reuters – Egypt, often the world’s top wheat buyer, saw a rise in imports of the grain from Russia in March despite supply and payment disruptions following its invasion of Ukraine that also drove traders to seek shipments from other suppliers.
Egypt received 479,195 tonnes of wheat from Russia in March, 24 per cent up from the same month last year, according to freight data seen by Reuters. Ukrainian wheat imports stood at 124,500 tonnes, down 42 per cent year on year.
“Russian ports remained open,” said Mohammed El Gammal, a Cairo-based grains consultant for the UN Food and Agriculture Organization and U.S. Wheat Associates.
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“Shipping slowed a little in late February and it picked up in March, whether for new contracts or old ones signed before the invasion.”
Egypt relies heavily on Black Sea wheat due to its quality, cost and proximity, traders say. In 2021, Egypt imported around 80 per cent of its wheat from Russia and Ukraine.
Since the Feb. 24 invasion, wheat importers in Egypt have faced record-high prices, payment complications due to sanctions against Russia, and disruptions to Black Sea wheat shipments, especially from Ukraine.
Although sanctions exclude food, traders say banks are reluctant to finance wheat imports from Russia.
Importers are still “trying to figure out a secured channel” for payments of already-delivered Russian cargoes, said one trader who imports to Egypt.
A second trader said some cargoes were paid for because they were purchased before the invasion, and that cases were being resolved individually through negotiations with banks.
Egypt’s milling industry is highly accustomed to Russian and Ukrainian wheat, said Cairo-based trader Hesham Soliman. “They’ll always give it priority as long as it’s available,” he said.
