The Syrian Economy Minister revealed a set of measures had been taken in order to face the repercussions of the Russian invasion of Ukraine on the Syrian economy.
Samer al-Khalil said in a press conference, following a government meeting devoted to studying the repercussions of the Russian-Ukrainian war, that new materials will be prevented from exporting in order to increase the supply of them in the local market, in addition to that, a decision was taken to allow the shipment of goods to be cleared, regardless of the shipping period.
A-Khalil said much of the Syrian local market is depending on Russia and Ukraine, which may threaten markets with shortages and high prices.
"The Ukrainian-Russian crisis threatens global oil prices with a further rise, indicating that at the internal level there will be a precise plan for distributing oil derivatives during the next two months," said al-Khalil.
Syria's top economic official did not hide his fear of the impact of the Ukrainian crisis on the import of wheat to Syria, revealing that the Republic of Crimea expressed its desire to import wheat to Syria, and that the issue is under discussion.
The government on Thursday held a meeting, which it described as exceptional, "in response to developments taking place globally" and "with the aim of pre-planning to manage potential repercussions and study scenarios to deal with them to avoid them or reduce their impact on the economic and service situation in Syria."
A statement by the Council of Ministers stated that the recent developments, most notably the accelerating rise in oil prices, will affect Syria’s supplies of oil derivatives and increase the costs of these supplies, as well as the rise in the costs of global transport wages, which will also reflect an increase in the costs of supplies in addition to the rise in metal prices and the accompanying rise in the prices of industries And its products significantly at the global level, and all of this will affect an increase in the prices of international foodstuffs and the components of the consumer basket for consumers.
The statement added that during the meeting, work items were set to deal with this new situation for a period of two months, during which periodic meetings will be held to assess the situation and take the necessary measures regarding its developments, according to five levels that are summarized as follows:
- Taking the necessary measures to manage the available stocks of basic materials (wheat, sugar, oil, rice and potato) during the next two months and the requirements for strengthening it, checking the levels of distribution of these materials and rationalizing them to ensure the sustainability of their availability and studying all options for supplying them by various means.
- Develop a list of the most necessary basic supplies during the next two months, agree on supply contracts, follow up and stress on suppliers to complete the site as soon as possible.
- Reviewing the materials that are exported and restricting exports during the next two months for materials that can contribute to market stability such as olive oil, preserved foodstuffs and other materials, as well as managing the market's needs for medicines.
- Studying the possibility of reducing some indicative prices for some basic materials in order to reduce the prices of these materials in the local market.
- Develop a plan for distributing all oil derivatives during the next two months to ensure orderliness in the distribution and rationalize this process for the necessary sectors and develop a plan to gradually reduce the quantities that are supplied to the market and study the reality of supplies and emphasize the importance of quickly addressing the issue of excluding segments from subsidies according to what has been approved to benefit from its repercussions Positive on the level of savings in the consumption of subsidized materials.
On the financial and banking level, the Ministers Council decided the following:
- Tightening control over the exchange market to ensure its stability during the next two months, following up on the expected developments and taking the necessary measures regarding them.
Rationalizing the allocation of plots during this period to meet the most necessary needs and setting appropriate time and monetary programming to finance wheat contracts as a strategic material.
- Work to rationalize public spending at the present time so that it is limited to priorities during this period, in order not to increase the deficit financing.
Emphasis on monitoring the markets and unifying efforts to monitor them, ensure that prices are controlled, and prevent any form of monopoly and manipulation of market stability.
The collapse of Syria's currency has compounded the crisis. Worth about 50 to the United States dollar before the war, the Syrian pound traded in the hundreds per dollar in recent years, but began plummeting last fall in connection with a financial crisis in neighboring Lebanon, where many Syrians kept their money, according to the New York Times.
The International Rescue Committee says Syrians are enduring the worst economic crisis since the war began, with record levels of food insecurity and rapidly rising prices of basic goods. At the same time, water shortages in northern Syria are creating drought-like conditions for millions and jeopardizing already compromised health, water and other systems.
The Syrian Prime Ministry announced last week a new plan to expand drilling and exploration for gas and oil, in an indication of its desperation to recover the oil fields controlled by the US-backed Kurdish forces in the northeastern Syria.
The director of the Syrian regime's General Petroleum Corporation, Nabih Khrestin, confirmed that the Ministry of Oil and Mineral Resources aims to work in 16 wells this year to explore, develop and produce oil with the help of the "Syrian Oil Company" and companies operating in the country.
After the end of a meeting of the regime's cabinet, Khrestin explained that the plan includes the work of 5 rigs in several fields and the entry into new exploration areas that could not be entered previously.
He pointed out that the government is seeking to increase production to secure the need for electricity and oil derivatives for citizens in light of the current difficult conditions that Syria is going through.
The Syrian regime seeks to improve the electrical situation in the country and the reality of hydrocarbons. The extent of his success in achieving these new oil discoveries, experts say.
The Oil Ministry has revealed the total direct and indirect losses in the oil sector, which amounted to about $100.5 billion since the beginning of the Syrian crisis so far.
Oil production in Syria during the past year amounted to about 31.4 million barrels, with an average daily production of 85.9 thousand barrels, of which 16 thousand barrels per day reach refineries, and the rest is obtained by the YPG-led Syrian Democratic Forces (SDF).
Syria’s conflict began in March 2011 and has killed nearly half a million people and displaced half the country’s pre-war population of 23 million.
($1=3600 SYP in the trading market)
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