Ukrainian exporter sues Egyptian government buyer over disrupted supply — Reuters

A Ukrainian company exporting sunflower oil has initiated arbitration after Egyptian state buyer Mostakbal Misr failed to open a letter of credit for the shipped goods.

This is reported by Reuters.

The Ukrainian exporter sent sunflower oil to Egypt in July, but Mostakbal Misr (Future of Egypt) never opened a letter of credit – a financial guarantee necessary to pay for the delivery. As a result, the cargo had to be resold to another customer at a loss. According to the agency’s source, the Ukrainian company initiated arbitration with one of the British trade associations. Reuters was unable to find out whether the dispute had progressed to a formal procedure or was resolved informally.

The agency also notes that a French wheat supplier faced payment delays and even threatened legal action, as Future of Egypt did not open a letter of credit for the May shipment.

Until December 2024, Egypt used the GASC tender system, which formed a global price benchmark and ensured stable grain purchases. After switching to purchases through Future of Egypt, the country abandoned transparent tenders. The new model was accompanied by payment delays, price revisions and contract cancellations, which traders perceive as de facto defaults.

The result was a drop in wheat imports: in the first half of 2025, about 5.2 million tons were imported – a quarter less than a year earlier. Government purchases fell to 1.6 million tons. In April, stocks fell to a level slightly above monthly needs, and the situation was stabilized only thanks to the local harvest.

According to international traders, the Future of Egypt system remains less transparent: information about deals is published only after the arrival of ships in ports, which complicates planning and increases risks.

USM previously reported that eight vessels with Ukrainian grain were stuck in Egyptian ports.