Egypt and Russia grain squabble

Black Sea wheat exports to Egypt have surged in the past year delighting Russian traders, but a decision by Cairo to quarantine several shipments over quality concerns is casting a shadow over the growing trade.

Cheap freight rates and a strong dollar have given Black Sea wheat a competitive edge over other origins, with Russian wheat comprising a majority of the 5 million tonnes purchased by Egypt's main state wheat buyer GASC during this fiscal year.

Below is a chronology of events surrounding the issue. May 13 - Egypt's state prosecutor orders the seizure of all Russian wheat in the country for health checks over quality concerns after a complaint that a spoiled wheat shipment entered the country through Safaga port. The Russian Grain Union says the action is an attempt to force Russian suppliers to sell at lower prices.

May 14 - Egyptian agriculture quarantine official says a shipment of 52,501 tonnes of Russian wheat quarantined at Safaga port is tested for dead bugs and impurities. May 18 - Local Egyptian newspaper reports another shipment of 30,000 tonnes of Russian wheat shipment is being held at Damietta port for inspection. Egyptian Traders company, which sold the shipment being held at Safaga port to GASC, says it will not send any more Russian wheat to Egypt unless the problem is resolved.

May 20 - A local newspaper reports another 30,000 tonnes of Russian wheat is held at Port Said port for inspection. Egypt's foreign Minister Ahmed Aboul Gheit, on a trip to Moscow, says he hopes for a quick resolution to the dispute.