September 8, 2022


Egypt in discussions to replace detained Ukrainian wheat shipment



Egypt is currently in discussions to replace a detained Ukrainian wheat shipment after talks to release the vessel carrying the cargo was unsuccessful, said two people with knowledge of the matter, Reuters reported.


A ship named Emmakris III carrying 60,000 tonnes of Ukrainian wheat was detained in July at the request of Ukraine's prosecutor general in order to look into the ownership of the ship's purported Russian owner.


Several requests for comment from the organisation that Ukrainian officials identified as the owner were not answered.


The General Authority for Supply Commodities (GASC), Egypt's state grain buyer, bought the cargo in a December tender for shipment in February, but it has been stuck at the port of Chornomorsk ever since Russia invaded Ukraine on February 24.


The Middle East representative for Ukraine claimed that efforts were being made to free the ship by Ukrainian authorities, but three people with knowledge of the situation claimed that the ship was still under investigation.


Following Russia's invasion of Ukraine, GASC initially gave trading companies a reprieve from their contractual obligations to secure the cargo but did not provide them with any force majeure release, which is a provision in contracts that exempts parties from liability due to uncontrollable events.


GASC's tender book requires suppliers to fulfil contractual quantity from an alternative origin, In the case of inability to deliver a cargo, as the state grain buyer's tender book does not contain a provision for force majeure.


Suppliers of four Ukrainian wheat cargoes bought before the war were released by GASC but did never loaded on a vessel from their contractual obligations in July.


-      Reuters

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