July 14, 2009
RIAS starts arbitration against Egyptian Traders in London
A subsidiary of Russia's second-largest grain exporter is starting arbitration proceedings in London against one of Egypt's main wheat suppliers, a lawyer for the exporter told Dow Jones Newswires Monday (Jul 13).
"RIAS Trading SA has commenced arbitration against Egyptian Traders Co. at the Grain and Feed Trade Association," Joe Barrett said.
RIAS, the Swiss arm of Rosinteragroservis, is seeking the release of its ship, Seabird. The vessel has a cargo of around 56,000 tonnes of wheat and is being held in the Red Sea port of Safaga by the Egyptian state as it attempts to recoup its losses from an allegedly substandard cargo from Egyptian Traders.
The authorities allege that Egyptian Traders presented forged documents certifying grain suitable only for agricultural use as fit for human consumption. Egypt's state prosecutor is conducting a criminal investigation into the matter.
GAFTA - a worldwide grains industry body - has an established arbitration service designed to resolve trade disputes. In a further twist, Ashraf El Attal, chief executive of Egyptian Traders, is also the President of GAFTA. El Attal declined to comment.
