Egypt’s Mostakbal Misr makes major Russian wheat purchase
Egypt’s state grain buyer, Mostakbal Misr, has secured a shipment of Russian wheat, although Russia’s OZK Group denies involvement in the deal. The shipment, with a capacity of over 250,000 tons, is set to be loaded onto Egyptian-flagged vessels. Egypt, facing challenges in maintaining its wheat reserves, is diversifying its sources and exploring new supply agreements with European producers to stabilize supplies and pricing.
Egypt’s state grain buyer, Mostakbal Misr, has made a significant purchase of Russian wheat, set for shipment this month, three sources familiar with the matter told Reuters.
The shipment, which sources said was procured through Russia’s OZK Group, and will be loaded onto four vessels sailing under the Egyptian flag.
The sources did not disclose the total volume or price of the transaction, but the vessels, currently on route to Russia’s Novorossiysk port, have a combined carrying capacity exceeding 250,000 metric tons.
Lobby group Russian Grain Exporters and Producers Union issued a statement on behalf of its member OZK, saying the Russian company had not entered into any agreement with Mostakbal Misr.
“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,” the union said.
Egypt, one of the world’s largest wheat importers, has faced challenges in maintaining its grain reserves in recent months.
In 2024, logistical and financial hurdles disrupted the government’s regular import operations, causing stocks to dip below the government’s six-month target.
The Cabinet recently stated that Egypt’s strategic wheat reserves are sufficient for four months of local consumption.
The Russian shipment follows Mostakbal Misr’s announcement last week of new supply agreements with European grain producers.
These deals, described as efforts to secure favorable prices and diversify wheat sources, include barter arrangements leveraging Egypt’s comparative advantages in other sectors.
Specific details, including volumes, prices, and supplier countries, remain undisclosed.
Russia has been a key supplier of wheat to Egypt, dominating both state and private-sector imports.
Trade data seen by Reuters shows that in 2024 Egypt imported approximately 14.7 million tons of wheat, with 74.3 percent sourced from Russia.
Mostakbal Misr, established in 2022 by presidential decree, succeeded the decades-old General Authority for Supply Commodities (GASC) as the country’s primary grains buyer.
Previously serving as the development arm of the Egyptian Air Force, the organization’s sudden move to this role marked a significant shift in Egypt’s wheat procurement strategy, surprising international markets.
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Source : Alarabiya
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