News

June 30, 2009

Is Medvedev Building Muscle On Wheat-Bix? Russian Grain Exporters

By John Helmer in Moscow

The grain trade war between Moscow and Cairo took a fresh twist this week, following the announcement during President Dmitry Medvedev's visit to Egypt on Tuesday that the two governments have agreed on terms for direct, large-volume shipments. A Russian government briefer has claimed that Medvedev agreed with his counterpart, Egyptian President Hosni Mubarak, to the Egyptian proviso that Russian grain sales to Egypt would grow above the current annual 3million tonne level, if quality issues are resolved.

In May government officials at the Egyptian ports, of Safaga and Damietta seized and quarantined an estimated 137,000 tonnes of grain which had been put on board ship at Novorossiysk. The seizures were reported in the Egyptian and Russian media to have been ordered by the Egyptian prosecutor, allegedly on claims of high weevil infestation. Subsequently, there are unconfirmed reports of the release of 56,000 tonnes, leaving an estimated 81,000 tonnes of Russian grain in Egyptian limbo....