News / Middle East

Iran Grants Syria $3.6B Credit Facility to Buy Oil Products

This July 31, 2013, screen grab from the official Instagram account of the Syrian Presidency purports to show Bashar Assad visiting with soldiers in Baba Armr, Homs province, Syria, in 2012.
This July 31, 2013, screen grab from the official Instagram account of the Syrian Presidency purports to show Bashar Assad visiting with soldiers in Baba Armr, Homs province, Syria, in 2012.
Reuters
Syrian authorities and Iran signed a deal this week to activate a $3.6 billion credit facility to buy oil products with long term payment terms, officials and bankers said on Wednesday.

The deal, which was agreed last May between the two allies and will allow Iran to acquire equity stakes in investments in Syria, was part of a package to extend Iranian aid to President Bashar al Assad's government, its main political ally.

Another $1 billion credit line to Damascus has already been extended to buy Iranian power generating products and other goods in a barter arrangement that has helped Syria export textiles and some agricultural produce such as olive oil and citrus, trade officials say.

Syria is short of diesel for its army and fuel to keep the economy running because of U.S. and European Union sanctions imposed after a crackdown on pro-democracy protesters. Its main supplier of petroleum products by sea has been Iran.

Despite political support from China and Russia, which have blocked U.N. draft resolutions which could have led to further sanctions on Syria and opposed military intervention to end the conflict, Assad's fuel and cash lifelines have all but dried up.

Iran has steadily expanded economic ties with Syria to help it withstand Western economic sanctions and sealed a free trade deal that granted Syrian exports a low 4 percent customs tariff.

Last January, Tehran agreed during a visit by Prime Minister Wael al-Halki to deposit $500 million in Syria's central bank vaults, banking sources say.

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Comment Sorting
Comments
     
by: Ali
August 01, 2013 2:06 PM
The Iranian economy is very weak, the inflation is high and Government has a lot of difficulty to transfer Dollar and Euro to Iran. in this situation ordinary Iranian peoples deserve more than Syrian of this amount of money.

by: Abraham from: Canada
July 31, 2013 1:55 PM
I am totally disagree . our people in IRAN need more.

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