Egypt is seeking an alternative to Russian wheat: negotiations are underway for a credit to purchase wheat from Kazakhstan.

Egypt is currently in talks with a bank in Abu Dhabi to secure a loan for purchasing wheat from Kazakhstan, according to information obtained from traders and reported by Reuters.

This is an important step that could provide Egypt with a favorable alternative to Russian wheat, as reported by the agency.

Since the beginning of last year, the Russian Federation has played a major role in exporting wheat to Egypt. However, a recent deal to buy Russian wheat for Egypt was halted because the price was below the unofficially set minimum level, according to traders.

Egypt, the world's largest wheat buyer, is currently trying to reduce import costs as it faces a foreign currency shortage, leading to difficulties in making payments for the wheat.

“Negotiations for a credit deal to purchase wheat from Kazakhstan are at an early stage, discussing the price, volume of wheat purchases, as well as the cost of the credit itself,” said a source familiar with the negotiations.

Kazakhstan is already an approved source of wheat imports for Egypt, but purchases from this Central Asian country are rare. According to traders, GASC is negotiating with Kazakhstan regarding a price that could be below the unofficially set minimum price established by the Russian government. At the same time, doubts have arisen regarding the possibility of wheat delivery from Kazakhstan due to logistical challenges and the need for overland deliveries through other countries.