Russian wheat supplies to Syria have been suspended because of uncertainty about the new government and payment delays, Russian and Syrian sources said yesterday, while two vessels carrying Russian wheat for Syria did not reach their destinations.
Russia, the world’s largest wheat exporter, was a staunch supporter of Bashar Al Assad and supplied wheat to Syria through complex financial and logistical arrangements, circumventing Western sanctions imposed on both Syria and Russia.
A Russian source close to the government told Reuters supplies to Syria have been suspended because exporters are concerned by uncertainty over who will manage wheat imports on the Syrian side following the change of power in Damascus.
“I think no one would dare supply wheat to Syria under the current circumstances,” the source, who spoke on condition of anonymity due to the sensitivity of the situation, told Reuters.
Shipping data shows one vessel, the Mikhail Nenashev, is anchored off the Syrian coast, while another, the Alpha Hermes, is heading towards the Egyptian port of Alexandria after remaining off the Syrian coast for several days.
The Syrian General Establishment for Cereals Processing and Trade (Hoboob) used to conduct wheat purchasing tenders but has increasingly relied on a network of international intermediaries to maintain Russian supplies despite sanctions.
Rebel leader Ahmad Al Sharaa’s group, which ousted Al Assad in a swift campaign in Damascus last week, is asserting its authority over Syria’s state by deploying police and installing interim officials.
However, they have yet to establish a new administration in Hoboob or create another commodity importing agency, according to Syrian sources, who also spoke on condition of anonymity.
A Syrian source told Reuters that vessels were delayed because of uncertainty over payments and that Russia and the interim government were in communication regarding the issue. A Russian industry source said Russian exporters were in contact with the Syrian side.
Russian Deputy Foreign Minister Mikhail Bogdanov said yesterday that Russia has made direct contact with the political committee of Syria’s rebel group, Hayat Tahrir Al Sham, aiming to maintain its military bases in Syria. He did not comment on the wheat trade.
Given there was no payment from the Syrian side for the delivered wheat, a Russian industry source said the cargo of about 60,000 metric tonnes loaded on the two vessels might be sold to another buyer.
The two vessels can carry a combined 33,000 tonnes of wheat. However, part of the Russian grain trade with Syria is conducted using sanctioned Syrian vessels that are not visible on tracking systems.
Eduard Zernin, head of the Russian Grain Producers and Exporters Union, told Reuters this week that Russian grain exporters did not plan to unilaterally stop supplying wheat to Syria.
Zernin estimated Syria’s imports at about 2 million metric tonnes of wheat per year, and said Syria was not a major consumer. A disruption in Russian wheat supplies, however, could cause hunger in the country of over 23m people.
Meanwhile, Ukraine, a global producer and exporter of grain and oilseeds, is willing and ready to supply food to Syria, Ukrainian Agriculture Minister Vitaliy Koval told Reuters yesterday.
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