Russia holds up two Egyptian wheat ships due to trader dispute

Russian authorities are holding up two Egyptian ships loaded with wheat for export, in the latest sign that a domestic dispute between a key grain trader and the agriculture regulator is hindering deliveries abroad.

The ships are carrying cargoes from Grainflower DMCC, which people familiar with the matter say is an export partner of Russian trader TD Rif. Rif has been targeted by the industry watchdog recently. 

Egypt’s Supply Minister Ali El-Mosilhy told Bloomberg News the ships were denied permission to sail because they did not have the right documents, and are now being held up in Russian ports.

They were meant to sail by the end of March, according to a January tender, and Egypt is waiting for a response from Russian embassy officials on the issue, El-Mosilhy said. The people linking Grainflower to Rif asked not to be identified as the topic is sensitive.  

Last month, Rif’s owner said the firm’s exports were being blocked and that it’s facing pressure to sell its assets for a “negligible price.” Meanwhile, the agriculture regulator has said it’s stopping some exports by Rif due to “systematic inconsistencies” in grain safety and quality. Egypt is a major importer and a key customer for Russian exporters. 

Spokespeople for Russia’s agriculture ministry and regulator did not immediately respond to email and phone requests for comment, nor did representatives for Rif and Grainflower.

El-Mosilhy said that Egypt will decide what to do with the cargoes once it receives a response from Russia on the ships, which are named Wadi Almolouk and Wadi Safaga.