Egypt cancels 240,000 tons of Ukrainian wheat contracts

Egypt canceled four cargoes of Ukrainian wheat that it contracted to buy before Russia’s invasion, even as Kyiv prepares to restart grain exports following a forced five-month hiatus due to the war. 

State buyer GASC scrapped the purchase of 240,000 tons for February and March delivery that never loaded in Ukraine, according to three people with knowledge of the matter who asked not to be identified because they aren’t authorized to speak to the media. 

The procurement authority this week released the suppliers of the four cargoes -- Nibulon and Inerco -- from their contractual obligations, upon requests from the companies, the people said. 

Egypt depends heavily on grain shipments from the Black Sea -- one of the world’s top supply regions -- and its wheat stockpiles were initially hit by the war that began in late February. Since then, the country has managed to build up inventories from state and private deals. Egypt now has more than seven months of wheat stockpiles, according to officials. 

Russia and Ukraine signed a deal last week to restart grain exports from Ukrainian ports. The agreement could ease fears of a global food crisis, though much uncertainty remains due to continued fighting. 

Another loaded cargo has been stuck at Ukraine’s Chornomorsk port since the war began. It is expected to sail once operations restart at the terminal.