Syria to Significantly Reduce Russian Oil Imports in Bid for US Sanctions Relief
Syrian Oil Policy Shift and US Sanctions Negotiations
BEIRUT/WASHINGTON, Aug 4 (Reuters) - Damascus has agreed to drastically reduce imports of Russian oil as part of its ongoing discussions with the United States on lifting the last major sanctions designation on Syria, three sources familiar with the conversations told Reuters.
Implications of Reduced Russian Oil Imports
Such a reduction would represent a major shift in energy policy in Syria, which has become heavily reliant on Russian oil despite a political pivot to the West, and raises the question of how Syria would plug the hole left behind.
It would also be a new way for the U.S. to exert pressure on Russia's economic sway in the country, experts say.
US-Syria Discussions and Conditions
In recent months, senior Syrian officials have told the U.S. they are willing to reduce Russian oil imports as they discussed Washington removing Syria from a decades-old list of state sponsors of terrorism, according to a Syrian source with direct knowledge of the conversations, a U.S. official and another source briefed on the matter.
All three sources, speaking anonymously as they were not authorized to brief the press, said the U.S. did not explicitly frame the reduction as a pre-condition for lifting the designation.
Syria's readiness to decrease its Russian oil imports has not been previously reported.
Expert Analysis on Energy and Political Impact
"Replacing volumes of Russian crude cannot happen overnight without risking fuel shortages or higher import costs for Syria. The long-term impact on Damascus depends on whether Washington is pairing this pressure with alternatives," said Navvar Saban, a Syrian analyst at the Arab Center for Contemporary Studies.
Saban said Washington was "increasingly targeting the economic network that allows Russia to preserve influence after losing political ground in Syria."
Syria's Strategy to Diversify Oil Supplies
SYRIA KEEN TO DIVERSIFY OIL SUPPLIES, SOURCE SAYS
There was no immediate response to Reuters questions from Syria's information and foreign ministries, or from Russia's foreign and energy ministries.
A U.S. State Department official said Washington was "encouraging Syria to engage trusted corporate partners — especially U.S. firms — during the country’s recovery and reconstruction process" and expected Syria to comply with U.S. sanctions on Russia.
In response to questions to the White House, a U.S. official said there was no link between Syria's designation being removed and a reduction of Russian oil imports.
Sanctions Background and Recent Developments
The SST designation, in place since 1979, is the only major sanctions label still in place on Syria after U.S. President Donald Trump's administration and the U.S. Congress lifted comprehensive sanctions following the ouster of former leader Bashar al-Assad.
During discussions on rescinding the SST designation, Washington asked for and received a commitment from Syria to drastically reduce Russian oil imports, the U.S. official and the source briefed on the matter said.
According to the Syrian source, U.S. officials had told their Damascus counterparts that ending purchases of Russian oil would "improve the chances of lifting the SST designation quickly and without complications."
Syria responded that removing the designation would allow Damascus to build a diverse energy supply network, the source said.
Current Oil Supply and Future Prospects
Despite most Western sanctions being lifted, Syria's oil supply options remain severely limited. Russian oil shipments to Syria jumped 75% to about 60,000 barrels per day this year — a tiny share of Russia’s daily global oil exports but one that has made Moscow the dominant crude supplier to Syria, Reuters found.
"Today, Syria relies on Russian oil out of necessity, not preference. Syrian officials often respond (to the U.S.) by saying: 'Lift the SST designation and we'll buy oil from somewhere else. We simply don’t have alternatives right now,'" the Syrian source said.
None of the sources had details on a timeline for the change or alternative sources of crude.
A Syrian energy official told Reuters that Damascus was already seeking new suppliers and that a "radical change" was expected.
French oil major TotalEnergies' <TTEF.PA> discussed signing an offshore exploration contract with Syrian officials last month and Syria signed a deal with ConocoPhillips and Novaterra to revive gas production in June.
US Policy Shift and Regional Implications
U.S. SHIFTING TO PRESS RUSSIA IN THE REGION
Syria is one of only four countries on Washington's SST list, sharing the title with Cuba, Iran and North Korea.
Congressional and Military Considerations
On July 8, Trump informed Congress of his intent to remove Syria from the list, triggering a 45-day notification period during which he must certify to Congress that Syria has not provided support for acts of international terrorism during the preceding six months and has provided assurances that it will not support such acts in the future.
Since Assad was toppled, Syria's new Islamist-led government has pledged the country would never again threaten regional or international security, joined the U.S.-led coalition fighting the Islamic State and has regularly busted weapons smugglers along its borders with Iraq and Lebanon.
While Russia did not feature in earlier American conditions for sanctions relief, the U.S. has signaled more recently that it wants to see Syria distance itself from Moscow.
Congress has directed the Pentagon to assess options for reducing Russia's influence in Syria and securing its forces' departure from a seaport in Tartous and airbase in Hmeimim.
Reuters reported in July that part of Russia's naval base is expected to be turned into a commercial logistics hub.
(Reporting by Maya Gebeily, Gram Slattery and Feras Dalatey; Editing by Sharon Singleton)
