The cancelation of wheat exports from Ukraine may put Egypt in a difficult situation, because it will have to establish contacts with other suppliers of grain. However, the issue of limitation of grain exports from Ukraine is not relevant.

This opinion was expressed by Oleksandr Tkachev, head of the investment analysis department at the company Pro-Consulting, who commented on the position of the Egyptian state agent for the purchase of foods, GASC, concerning the refusal from Ukrainian wheat.

"The question of Ukrainian grain export limitation is not relevant. Most likely it is the creation of a problem for Egypt itself, as there is some uncertainty about it as a Ukrainian partner. It is also unlikely that the official Kyiv will promise lifting bans on wheat exports, as this is the primary mechanism for support of stable prices in the domestic market," the expert said.

He also stressed that, not taking into account the constraints, one cannot ignore the high potential of the Ukrainian agricultural sector development.

For his part, Chairman of the Agrarian Union of Ukraine Hennadiy Novikov said the statement by Egypt's public importer is unfounded. "They will buy all the same. The food crisis is increasing. It is projected that food shortage will be growing until 2020. Therefore, we may say we should not worry," he said.

Novikov noted that "all the trader structures that participated in signing the memorandum knew back in July how much can be exported." Accordingly, the expert added, other market participants also knew how many tons of wheat Ukraine can export. So, now there can be no sanctions against this country.

"I think that Egypt may also run into WTO sanctions. Ukraine has not stopped the export of grain. I think this is a kind of canard. Yesterday, the ambassador to Egypt called me and said that Egyptian producers want to buy our corn. They say that the amount of wheat has been exhausted, so they are asking for corn and barley," the Agrarian Union leader informed.


 

Ukrinform