Russia seeks to strengthen its position in Egypt’s grain market through logistics hub

Russia is considering establishing a grain hub at Egypt’s port of Alexandria, a move that could strengthen its position in one of the world’s largest wheat import markets. According to Russian Agriculture Minister Oksana Lut, a Russian grain trader is already operating at the port in partnership with local companies. Meanwhile, the Egyptian side has proposed an alternative location, which Russian companies are currently evaluating for economic feasibility.

Developing its own logistics infrastructure in Egypt could allow Russian exporters to gain greater control over grain supply chains, from transportation and storage to processing and distribution. This could provide additional competitive advantages for Russian wheat and potentially make it more difficult for other suppliers, including Ukraine, to access the Egyptian market.

Egyptian Minister of Supply and Internal Trade Sherif Farouk confirmed the country’s interest in developing a grain hub, highlighting the significant volumes of Russian grain imports. According to Farouk, Cairo is exploring opportunities to expand cooperation with Russia in grain storage, processing, logistics and food trade.

At the same time, deeper cooperation with Russia in grain logistics could increase Egypt’s dependence on a single supplier and pose additional risks to import diversification. These concerns would become particularly relevant if Russian companies gained access to key grain storage and handling facilities. However, a final decision on the construction of the hub has not yet been made.

Tags: Egypt, export, grain, wheat, grain terminal, Russia