Recent reports indicate that Russian wheat supplies to Syria have been suspended due to uncertainty surrounding the new government and payment delays. This development has raised concerns among exporters, leading to two vessels carrying Russian wheat for Syria failing to reach their intended destinations.
As the world’s largest wheat exporter, Russia has historically supported Bashar al-Assad’s regime in Syria by supplying wheat through complex financial arrangements to bypass Western sanctions. However, the recent change in power in Damascus has created a cloud of uncertainty, prompting exporters to halt shipments to Syria.
The Syrian General Establishment for Cereals Processing and Trade (Hoboob) has traditionally handled wheat purchasing tenders but has increasingly relied on international intermediaries to maintain Russian supplies despite sanctions. The lack of clarity regarding the new administration in Syria has further complicated the situation.
With no payment received from the Syrian side for the delivered wheat, Russian industry sources suggest that the cargo may be redirected to another buyer. This disruption in wheat supplies could have severe implications for Syria, where over 23 million people rely on wheat imports to sustain a bread subsidy program.
In a good year, Syria could produce up to 4 million tonnes of wheat, but ongoing conflicts and droughts have significantly reduced its crop yield. As a result, the country heavily depends on imports from the Black Sea region to meet its domestic needs.
While Russian grain exporters have expressed their commitment to continue supplying wheat to Syria, the current situation underscores the challenges posed by political instability and payment delays in international trade. As the situation unfolds, it will be crucial to monitor developments closely to assess the impact on global wheat markets and food security in Syria.
