CAIRO, June 23 (Reuters) - Russia could set up long-term contracts to sell grain to Egypt once a quality control issue is resolved, a Russian official said on Tuesday, after a Russian wheat cargo was ordered re-exported over quality concerns.
Wheat shipments from Russia have been under scrutiny in Egypt since mid-May, when the prosecutor ordered a probe after dead bugs and impurities were found in Russian wheat imported by a private Egyptian firm. The cargo was ordered to be sent back.
"At the latest intergovernmental commission, the Egyptian side raised the issue of long-term contracts on grain purchase," Andrei Slepnyov, deputy Russian economy minister, said during a visit by Russian President Dmitry Medvedev to Egypt.
"This will become possible after the issue of quality control is resolved. We will work on a joint certificate and quality control. We would want this (long-term contracts) this season, but will see how it works out," he said.
The issue of grain exports to Egypt is on the agenda for talks on improving trade ties between Moscow and Cairo during the Russian president's trip. Egyptian Trade Minister Rachid Mohamed Rachid said during a visit to Russia this month that Cairo and Moscow will take joint measures against companies importing wheat into Egypt that was below quality specifications.
Rachid also said at the time that the Russian side had suggested having a long-term agreement to export wheat to Egypt based on Egyptian specifications.
Egypt is the biggest consumer of Russian wheat exports, with more than four million tonnes estimated this season.
That accounts for approximately a quarter of Russia's wheat shipments and nearly a third of Egypt's total yearly wheat consumption at 14 million tonnes. (Reporting by Oleg Shchedrov)