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By Maha El Dahan
CAIRO, July 14 (Reuters) - Russian grain company Rosinteragroservis (RIAS) said on Tuesday it had started two arbitration cases at the London-based Grain and Feed Trade Association (GAFTA) against a private Egyptian grain importer.
A RIAS official told Reuters that grain importer Egyptian Traders had failed to pay RIAS Trading SA, a Swiss-based subsidiary of RIAS, for two Russian wheat shipments.
Egypt, the world's top wheat importer, has been in a dispute with Egyptian Traders since mid-May over the quality of wheat cargoes brought to the country and over the authenticity of an import document that the firm has said was valid.
The Egyptian firm could not immediately be reached for comment.
"When we presented documents for payment to Egyptian Traders ... they didn't pay, so they went into default as per the GAFTA," RIAS Trading Commercial Director Chris Vanhonacker said. "We have started this arbitration to recuperate our losses."
The government has announced measures aimed at improving inspection and quality control of imported wheat, including doubling the financial sureties deposited by cargo inspection firms.
The chairman of Egyptian Traders, Ashraf El Attal, is also the president of GAFTA.
RIAS's Vanhonacker said this "will not affect the case".
One of the vessels in the dispute, the Seabird, is being held at the Egyptian Red Sea port of Safaga despite a decision, announced by Egypt's trade ministry, to re-export the shipment.
A second shipment had been re-sold, according to Vanhonacker, but RIAS was seeking monetary compensation for losses incurred in shipping the wheat to Egypt before having to re-sell it.
"When we saw the problems at Safaga with the Seabird, we prevented the other vessel from going through the Suez Canal and kept it off the coast of Port Said and then re-sold it," he said.
RIAS has said Egypt's main state wheat buyer, the General Authority for Supply Commodities (GASC), ordered customs officials in Safaga to detain the Seabird despite the re-export decision. GASC has not commented on the matter.
RIAS previously filed a complaint on June 29 with Egyptian prosecutors against GASC and Egyptian Traders for delaying the release of the vessel. (Editing by Anthony Barker)