Bread sign: Russia and Egypt are closer to creating a grain hub
The relevant departments of Russia and Egypt have begun working on the creation of a grain hub in the North African republic. This was stated to Izvestia by Deputy Foreign Minister of the Russian Federation Georgy Borisenko. Moscow expects that the initiative will move quickly to the implementation stage. At the same time, the parties do not plan to involve other states in the project — Egyptian partners are specifically turning to the Russian Federation with a similar proposal, the diplomat said. According to experts, the project can provide energy to the El-Dabaa NPP. Borisenko stressed that the construction of the station is proceeding according to the approved schedule.
Creation of a grain hub
On April 1, a delegation from Egypt headed by Foreign Minister Badr Abdelati arrived in Moscow on a working visit. On the 2nd, he was received in the Kremlin by Vladimir Putin, and on the 3rd by Russian Foreign Minister Sergei Lavrov. One of the key topics of the meetings was the appearance of a grain hub in Egypt. The parties have already started working on its creation, Russian Deputy Foreign Minister Georgy Borisenko told Izvestia.
"This initiative is already being actively discussed, and our guests, the Ministry of Agriculture and the Ministry of Supply of Egypt, are in contact," the diplomat noted. — The issue is currently being resolved, and we assume that the study will be quite dynamic.
Currently, Moscow and Cairo do not plan to involve other countries in the project, Borisenko said.
— At the moment, there were no such plans (to involve other countries. — Ed.), and our Egyptian partners are specifically turning to Russia with a similar proposal, since Russia is their largest grain supplier, meeting about 80% of their wheat import needs," the deputy head of the ministry stressed.
According to the Russian side, in 2025, the Russian Federation supplied more than 8 million tons of wheat to Egypt and is able to export more. In the same year, the total harvest of this crop in the Russian Federation was estimated at about 88.4–88.5 million tons. Russia remains the largest wheat exporter in the world.
The parties already have ideas on where to place the hubs.
"There are specific plans for the location, since large Russian grain traders have been actively working in Egypt for a long time,— Borisenko added. — They already have their own facilities there, including in some Egyptian ports.
Earlier, the media reported that the parties are considering the creation of a hub in the Port Said, Dumyat or Sokhna area, since all three cities have access to the sea. Port Said is one of the main transshipment points between Asia and Europe in the north of the Suez Canal. Sokhna is valuable as the southern, Red Sea entrance to Egyptian logistics. Dumyat looks like a strong candidate due to the ready-made grain infrastructure: the port has special berths, deep-water approaches, significant storage areas, as well as a channel for barges connected to the Nile arm. This is important not only for sea unloading, but also for grain export inland.
"In March, a specialized grain terminal for 3.5 million tons per year with storage of up to 6 million tons was approved in Dumyat," said Alexander Kudryashov, senior lecturer at the Department of Financial and Investment Management at the Financial University under the Government of the Russian Federation.
Another optimal location for the hub is Alexandria, according to Ivan Amelkin, a logistics specialist and entrepreneur. There is not just a port here, but the largest logistics hub in Egypt that is already operating. Almost three quarters of the country's foreign trade passes through it.
The establishment of a hub in Egypt is a logical step to optimize logistical costs. It is more profitable for Russia to transport grain in large ship shipments, which greatly reduces the cost of freight, storage and distribution. This is a double benefit for Cairo: the republic not only insures its food security, but also becomes the main distributor in the region. It is convenient for Russian grain to be re-exported by smaller vessels from the Egyptian hub to its neighbors in North and East Africa (Libya, Sudan) and the Middle East, Amelkin noted.
Konstantin Kuguchin, an expert economist and MGIMO lecturer, who is directly involved in the discussion process at the business level, emphasized the importance of the project to Izvestia. According to him, Russia is moving away from simple exports of raw materials, when most of the added value remains with foreign partners, and is starting to get involved in a more complex model of working in foreign markets.
This is important not only for strengthening trade relations with one of the key partners among the countries of the Global South, but also from a pragmatic point of view. Many international traders have invested in the infrastructure and production facilities of other countries, and now they buy products through their own structures — actually on their own, Kuguchin noted.
The hub increases the sustainability of logistics, but does not eliminate price and foreign trade risks, Ilya Margolin, consultant on public administration and international policy, added.
Energy initiatives of the Russian Federation in Egypt
Grain infrastructure requires a lot of electricity, port mechanization, warehouses, transshipment, and sometimes processing and refrigeration facilities. Without sustainable food, the port, grain elevators and logistics work worse.
In this regard, the El-Dabaa NPP under construction by Rosatom can play an important role. It should be considered as a system element in providing energy to the grain hub, Margolin noted.
— The construction of Egypt's first nuclear power plant, El Dabaa, is underway on time, as approved by both sides. There are plans for further cooperation after this power plant is built," the Russian Deputy Foreign Minister told Izvestia. — However, first of all, it is necessary to implement this flagship project, which is now the largest in relations between Russia and Egypt and the largest nuclear construction site in the world.
The first power unit at the NPP is planned to be commissioned in 2028. The station will reach full capacity in 2030. Egypt sees nuclear generation as a response to the rapidly growing demand for electricity, and there has already been a shortage of reserves in the country's energy system.
Egypt now needs solutions for gas infrastructure, LNG, electric grid facilities and alternative generation, as the country is simultaneously increasing domestic consumption and maintaining its course towards the role of an Eastern Mediterranean energy center, Alexander Kudryashov added. In these conditions, the NPP serves as a source of base power, which reduces the load on the gas balance, the expert noted. In the future, nuclear power generation will be able to release some of the gas for export and industrial use, Ilya Margolin explained.
The first nuclear power plant in Egypt will be able to provide electricity to about 20 million people. Four blocks of 1.2 thousand each. MW will become a long-term source of basic power. Rosatom not only builds the plant, but also ensures the supply of fuel for the entire life, the management of spent nuclear fuel, trains personnel in the republic, and also provides support in the operation and maintenance of nuclear power plants in the first 10 years of operation.
The total cost of the project is estimated at $30 billion. 85% of the amount will be financed by a government loan from the Russian Federation, while the remaining 15% will be financed by Egypt through the involvement of private investors. Cairo does not have similar complex contracts with other countries.
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