Egypt agrees to replace retained Ukrainian wheat cargo after weeks of negotiations

Egypt’s state grains buyer GASC has agreed to replace impounded the Ukrainian wheat shipment with 60,000-ton cargo after weeks long negotiations to either free or replace the shipment, according to two sources told Reuters on Tuesday.

The replaced wheat cargo expected to be shipped between September 15 and October 15.

GASC will buy a new cargo of Russian or Ukrainian wheat from the same supplier Olam at a price of $361.25 per ton on a cost and freight basis, one of the sources clarified. Noteworthy, this is the same price of the older shipment.

The original cargo has been stuck on board a vessel named Emmakris III at the port of Chornomorsk since Russia’s invasion of Ukraine on February 24. This shipment was bought by GASC in a December tender.

The sources said that GASC has cancelled its contract with GTCS, the shipper of the previous cargo.

The new agreement with Olam would free GASC of any additional costs, as well as any responsibility towards the older shipment.