Egypt: GASC cancels 240,000 tons for suspended Ukrainian wheat contracts

Egypt’s state grains buyer GASC has canceled contracts to buy 240,000 tons of Ukrainian wheat that it had booked earlier this year, two people with knowledge of the matter told Reuters.

The sources indicated that GASC has exempted the responsible companies from their contractual obligations, although their contracts include a force majeure clause.

The shipment supposed to delivered in February and March, as it never loaded in Ukraine due to the Russian invasion.

In May, GASC has reported about 300,000 tons of wheat seized by Egypt were still stuck in Ukrainian ports.

Egypt depends heavily on grain shipments from the Black Sea, one of the world’s top supply regions and its wheat stockpiles were initially affected by the war that began in late February.

Russia and Ukraine have signed on Friday a UN backed deal to resume exports of Ukrainian grain through the Black Sea.

The agreement will be implemented in the next few weeks, which signed in the Turkish city of Istanbul and was brokered by the government in Ankara.