Russia To Continue Supplying Commodities To Syria Despite Contractual & Payment Uncertainties

Russia is taking a ‘wait and see’ response to the situation in Syria, where its wheat supplies are amongst the countries largest. Syria imports about 2 million tons of Russian wheat per annum. Disruption of Russian wheat supplies could risk mass hunger in the country, which has a population of over 23 million people, with hundreds of thousands more returning after Syrian militants ended the rule of Bashar Al-Assad and ousted him as President. Assad has subsequently fled to Moscow.

Eduard Zernin, head of the Russian Grain Producers and Exporters Union, said that “Russian grain exporters do not plan to unilaterally terminate their obligations under concluded contracts.” This means that Russian wheat exporters – and presumably other essential commodity suppliers to Syria – will keep the supply chains flowing.

Zernin said that Russian exporters would work with the Syrian side to resolve wheat supply payments and outstanding debt issues. Russia has previously issued loans to Syria to enable it to pay for wheat imports.

Moscow will be looking to the new Syrian administration to continue positive relations with Russia, despite the fact that it had supported the Assad government for many years. There are positive signs – the Russian Embassy has remained untouched, while the Iranian Embassy was looted, and various new Syrian leaders have stated that Russian assets will be protected.

A new Syrian government will almost certainly require Russian security and other assistance to keep the country functioning and its border integrity intact.