{"id":548029,"date":"2022-07-24T04:00:10","date_gmt":"2022-07-24T04:00:10","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/07\/24\/russia-ukraine-reach-landmark-grain-export-agreement\/"},"modified":"2022-07-24T04:00:10","modified_gmt":"2022-07-24T04:00:10","slug":"russia-ukraine-reach-landmark-grain-export-agreement","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/07\/24\/russia-ukraine-reach-landmark-grain-export-agreement\/","title":{"rendered":"Russia, Ukraine reach landmark grain export agreement"},"content":{"rendered":"<p><a id=\"tldr-story-01\" class=\"content-anchor\"><\/a> <strong>Good news on the wheat front<\/strong>: Russia and Ukraine have signed a landmark agreement to resume grain exports through the Black Sea, in a move aimed at averting a global food crisis. Russian Defence Minister Sergei Shoigu and Ukrainian Infrastructure Minister Oleksandr Kubrakov inked the agreement in Istanbul on Thursday following weeks of negotiations brokered by the UN and Turkey. The pact will unblock 20 mns tons of grain stranded at Ukrainian ports, a development that UN Secretary-General Antonio Guterres hailed as a \u201cbeacon of hope\u201d that will alleviate the hunger of mns of people facing record food prices due to the war in Ukraine.<\/p>\n<p><strong>What\u2019s what: <\/strong>Under the agreement, Russia has pledged not to attack cargo ships carrying wheat or Ukrainian ports involved in the shipping of grain, according to a document obtained by <a href=\"https:\/\/apnews.com\/article\/russia-ukraine-middle-east-global-trade-a2c89d94a0f8473b40a1fcde5710bda8\">the Associated Press<\/a>. In return, Ukraine will allow the ships to be inspected to assuage Moscow\u2019s concerns that they\u2019re being used to smuggle weapons and troops into the country. A UN-led joint coordination center will be set up in Istanbul, allowing Turkish, Ukrainian and Russian officials to monitor shipping in the Black Sea. The initiative runs for 120 days and will be extended automatically.<\/p>\n<p><strong>Normal service to resume soon: <\/strong>Guterres is expecting grain shipments to restart \u201cwithin the next two weeks,\u201d the newswire reported, citing statements from UN deputy spokesman Farhan Haq. The agreement sees shipments unlocked from Ukrainian ports of Odesa, Chornomorsk and Pivdennyi. Ukraine would be looking for some assurances about the safe corridors, needing around 10 days to prepare its ports, a senior UN official said. The goal would be to export 5 mn tons of wheat every month to help unload Ukraine\u2019s silos in time for this year\u2019s grain harvest.<\/p>\n<p><strong>Ukraine has a lot to sell:<\/strong> Ukraine has around USD 10 bn worth of grain to sell, Ukrainian President Volodymyr Zelensky said in an address Friday, according to <a href=\"https:\/\/www.reuters.com\/article\/ukraine-crisis-zelenskiy-grain-idAFKBN2OX1QG\">Reuters<\/a>. \u201cApproximately 20 mn tons of last year\u2019s grain harvest will be exported. There will also be a chance to sell this year\u2019s harvest ... at the moment we have about USD 10 bn worth of grains available,\u201d he said.<\/p>\n<p><strong>Shoukry hails Russia-Ukraine wheat pact:<\/strong> Foreign Ministry Sameh Shoukry welcomed the agreement during a phone-in on Ala Mas\u2019ouleety last night. \u201cIt is a positive step that will ease the pressure on many countries that depend on imports from Ukraine and Russia, led by Egypt,\u201d he told show host Ahmed Moussa (<a href=\"https:\/\/www.youtube.com\/watch?v=eJMOZiUxqRY\">watch, runtime: 2:31<\/a>).<\/p>\n<p><strong>Why this is important for us: <\/strong>Egypt, the world\u2019s largest wheat importer, is among the countries most affected by the grain shortage triggered by the conflict. Egypt purchased more than 20% of its wheat imports from Ukraine prior to the war, leaving it scrambling to find new suppliers after Russia blockaded the nation\u2019s ports.<\/p>\n<p><strong>It has been costing us a lot:<\/strong> Surging wheat prices added <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/90dbcce6-c13b-4758-8275-21fd871e7ef4\">an extra EGP 15 bn<\/a> to Egypt\u2019s import bill in the final four months of the previous fiscal year, and Finance Minister Mohamed Maait said in June that wheat imports will cost <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5ac17049-0088-4ed8-a391-d2e876d5d91b\">an additional USD 3 bn<\/a> this year if prices remained at their current levels.<\/p>\n<p><strong>Thankfully, wheat prices have fallen far from recent highs:<\/strong> US wheat futures have plunged more than 40% since peaking in mid-May as supply shortages have eased. The benchmark futures in Chicago fell as much as 6.6% after the agreement was announced on Thursday.<\/p>\n<p><strong>MEANWHILE-<\/strong> State grains buyer GASC has reportedly purchased an additional 120k tonnes of Russian and French wheat on Thursday, <a href=\"https:\/\/www.zawya.com\/en\/markets\/commodities\/egypts-gasc-buys-another-120-000-t-of-wheat-in-direct-talks-q59wfq3p\">Reuters<\/a> reported, citing traders. The purchase came a day after it booked 640k tonnes of wheat a day earlier. It has <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d278241a-bb02-4e38-a1b6-c6f9e9e2bee5\">canceled a wheat tender<\/a> on Tuesday due to high prices.<\/p>\n<p><strong>REMEMBER- <\/strong>GASC can now book the wheat directly from commodity traders. The authority typically purchases wheat via international tenders but <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/9d6fa0f0-2d5b-4ae8-b764-8e19398f26ac\">in May<\/a> the cabinet gave the go-ahead for the authority to buy directly from suppliers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Good news on the wheat front: Russia and Ukraine have signed a landmark agreement to resume grain exports through the Black Sea, in a move aimed at averting a global food crisis. Russian Defence Minister Sergei Shoigu and Ukrainian Infrastructure Minister Oleksandr Kubrakov inked the agreement in Istanbul on Thursday following weeks of negotiations brokered [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":548030,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7305],"tags":[317,168,72,270,1341,218,304,7085,563],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-548029","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commodities","tag-commodities","tag-diplomacy","tag-enterpriseam","tag-russia","tag-russia-ukraine-conflict","tag-turkey","tag-ukraine","tag-un","tag-wheat","wpautop","entry"],"acf":{"mongo_id":"f1933af3-aebe-45a8-88cc-f95f09cc11fd","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/7\/238.jpg","photo_position":"above","related_issue":[548025],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Russia, Ukraine reach landmark grain export agreement - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2022\/07\/24\/russia-ukraine-reach-landmark-grain-export-agreement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Russia, Ukraine reach landmark grain export agreement\" \/>\n<meta property=\"og:description\" content=\"Good news on the wheat front: Russia and Ukraine have signed a landmark agreement to resume grain exports through the Black Sea, in a move aimed at averting a global food crisis. Russian Defence Minister Sergei Shoigu and Ukrainian Infrastructure Minister Oleksandr Kubrakov inked the agreement in Istanbul on Thursday following weeks of negotiations brokered [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2022\/07\/24\/russia-ukraine-reach-landmark-grain-export-agreement\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-24T04:00:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2022\/7\/238.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2022\/07\/24\/russia-ukraine-reach-landmark-grain-export-agreement\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2022\/07\/24\/russia-ukraine-reach-landmark-grain-export-agreement\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Russia, Ukraine reach landmark grain export agreement\",\"datePublished\":\"2022-07-24T04:00:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2022\/07\/24\/russia-ukraine-reach-landmark-grain-export-agreement\/\"},\"wordCount\":653,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2022\/07\/24\/russia-ukraine-reach-landmark-grain-export-agreement\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2022\/7\/238.jpg?fit=%2C&ssl=1\",\"keywords\":[\"commodities\",\"DIPLOMACY\",\"EnterpriseAM\",\"Russia\",\"Russia-Ukraine conflict\",\"Turkey\",\"Ukraine\",\"UN\",\"wheat\"],\"articleSection\":[\"Commodities\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2022\/07\/24\/russia-ukraine-reach-landmark-grain-export-agreement\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2022\/07\/24\/russia-ukraine-reach-landmark-grain-export-agreement\/\",\"name\":\"Russia, Ukraine reach landmark grain export agreement - 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Turkish President Recep Tayyip Erdogan backed Russian counterpart Vladimir Putin\u2019s criticism of the landmark grain agreement that Turkey brokered with the UN\u2026","rel":"","context":"In &quot;AROUND THE WORLD&quot;","block_context":{"text":"AROUND THE WORLD","link":"https:\/\/enterpriseam.com\/egypt\/category\/around-the-world\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":590566,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/24\/uae-could-help-finance-wheat-purchases-says-supply-ministry\/","url_meta":{"origin":548029,"position":1},"title":"UAE could help finance wheat purchases, says Supply Ministry","author":"enterpriseam admin","date":"24 July 2023","format":false,"excerpt":"Egypt wants to continue to purchase Ukrainian wheat despite Russian blockade, says supply minister","rel":"","context":"In &quot;Commodities&quot;","block_context":{"text":"Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/7\/835.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":592427,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/06\/egypt-buys-more-russian-wheat-as-moscow-mulls-mates-rates\/","url_meta":{"origin":548029,"position":2},"title":"Egypt buys more Russian wheat as Moscow mulls mates\u2019 rates","author":"enterpriseam admin","date":"6 August 2023","format":false,"excerpt":"Russia is wielding its grain powerhouse status as a political tool","rel":"","context":"In &quot;Commodities&quot;","block_context":{"text":"Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/8\/210.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":548415,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/08\/egypt-to-renegotiate-canceled-ukraine-wheat-contracts\/","url_meta":{"origin":548029,"position":3},"title":"Egypt to renegotiate canceled Ukraine wheat contracts","author":"enterpriseam admin","date":"8 August 2022","format":false,"excerpt":"Egypt will sign new agreements with suppliers of Ukrainian wheat to replace contracts it canceled last month, Ukrainian media reported yesterday. 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