Egypt’s state grain buyer, Mostakbal Misr, has made a significant purchase of Russian wheat, set for shipment this month. Sources familiar with the transaction informed Reuters that this procurement was facilitated through Russia’s OZK Group and will be loaded onto four vessels sailing under the Egyptian flag.
Key Highlights:
Transaction Details:
The exact volume and price of the wheat purchase have not been disclosed. However, the vessels en route to Russia’s Novorossiysk port have a combined carrying capacity exceeding 250,000 metric tons.
OZK Group’s Statement:
The Russian Grain Exporters and Producers Union issued a statement on behalf of OZK, asserting that no agreements had been made with Mostakbal Misr for the wheat supply. They clarified, “The OZK Group has not entered into any contracts with Mostakbal Misr for the supply of wheat and does not expect any vessels for loading from the aforementioned company either in Novorossiysk or in any other Russian port.”
Egypt’s Wheat Import Landscape:
As one of the world’s largest wheat importers, Egypt has faced challenges in maintaining its grain reserves in recent months. Logistical and financial hurdles in 2024 disrupted regular import operations, causing stocks to fall below the government’s six-month target.
The Egyptian Cabinet recently announced that the country’s strategic wheat reserves are sufficient for four months of local consumption.
New Supply Agreements:
This Russian shipment follows Mostakbal Misr’s recent announcement of new supply agreements with European grain producers. These deals aim to secure favorable prices and diversify wheat sources, including barter arrangements that leverage Egypt’s strengths in other sectors. Specific details regarding volumes, prices, and supplier countries remain undisclosed.
Russia’s Dominance in Wheat Supply:
Russia has been a key supplier of wheat to Egypt, dominating both state and private-sector imports. Trade data indicates that in 2024, Egypt imported approximately 14.7 million tons of wheat, with 74.3% sourced from Russia.
Organizational Background:
Mostakbal Misr was established in 2022 by presidential decree, succeeding the long-standing General Authority for Supply Commodities (GASC) as Egypt’s primary grains buyer. Previously functioning as the development arm of the Egyptian Air Force, this transition marked a significant shift in Egypt’s wheat procurement strategy, surprising international markets.