
The Syrian government is negotiating deals with firms in London, Singapore and the Middle East to sell crude oil in return for the fuel it needs to survive in the face of an increasingly bloody insurgency.
Syria has been starved of diesel for its army and fuel to keep the economy running because US and European Union sanctions have cut off its usual suppliers. As sanctions bite income from crude oil sales becomes increasingly important.
Despite political support from China and Russia which have repeatedly blocked UN sanctions on Syria and opposed military intervention to end the conflict, President Bashar al Assad's fuel and cash lifelines have all but dried up.
Mr Laurent Fabius foreign minister of France said that "The war is costing him about EUR 1 billion per month and he has fewer and fewer resources. We estimate he only has a few months left without the support of Russia and Iran."
Mr Qadri Jamal Syrian deputy Prime Minister for Economic Affairs said that Syria has been largely cut off from fuel supplies as sporadic diesel deliveries from Iran, its main regional ally are meeting only a fraction of its needs and fresh deals with Russia have not yet been finalized.
Commercial documents, correspondence, shipping records and other papers reviewed by Reuters show how the Syrian government is seeking and sometimes clinching fuel deals which even if not huge are vital for the government's survival.
Syria's new business partners include firms domiciled in Britain, Egypt and Lebanon, all countries critical of Assad's crackdown on the opposition. In one instance, the papers show a Lebanese broker working on behalf of the Syrian government signed contracts in July and August with an Egyptian firm to trade crude oil and refined oil products and has already succeeded in making some deliveries.
While it is not illegal for firms in the Middle East and Asia to deal with the Syrian authorities, many refuse to do so for fear of being associated with a government whose forces have killed thousands of civilians.
Mr Samuel Ciszuk an analyst for KBC Energy Economics consultancy said that "There is a moral threshold to pass for some of the larger actors while killing is ongoing. This is actually an important factor for the supermajors and many mid size oil companies."
Syrian oil product imports virtually ground to halt after the national fuel distribution organization was blacklisted by the European Union in March, cutting off its usual EU suppliers including Greece's Naftomar and Monaco's Galaxy Group.
Critics said that outside suppliers may be helping Assad cling to power because they are providing households with basic fuel needs and so preventing a wider humanitarian crisis.
Mr Ayham Kamel Middle East analyst at Eurasia group said that "Assad will benefit if Syria's energy needs are somewhat met it does make him marginally more viable in the short term."
Syria's thirst for diesel extends beyond the needs of its army's tanks. Industry and agriculture have been brought almost to a standstill because there is no fuel to power machinery.
Source - Reuters
(www.steelguru.com)





