Russia Ships Diesel To Syria For 1st Time In Over A Decade Despite US Sanctions

Russia has sent a direct diesel shipment to Syria for the first time in over ten years, despite heavy US sanctions aimed at restricting its oil exports.

The shipment was transported by the tanker Prosperity, flying the Barbados flag, sanctioned by the US in January.

According to shipping data from LSEG, the vessel, previously known as NS Pride, was loaded with approximately 37,000 metric tons of ultra-low sulfur diesel at Russia’s Baltic port of Primorsk on February 8.

The tanker is currently anchored near the Syrian port of Banias. The ship is managed by Dubai-based Fornax Ship Management, a company that is also under US sanctions. Fornax has not provided any comment on the shipment.

Russia’s control over its two main military bases in Syria, the Hmeimim air base and the Tartous naval base, is under threat after the sudden fall of Syrian President Bashar al-Assad last year.

These bases are critical for Moscow’s strategic reach in the Middle East and Africa. Russia wants to maintain control over these installations. But the future of these bases remains uncertain.

Syria recently issued a tender to import 20,000 tons of liquefied petroleum gas (LPG) and is actively seeking oil supplies. According to shipping analytics firm Kpler, Syria has not received any crude oil shipments from Iran, its primary supplier, since November.

This has impacted the country’s energy sector, especially as its two main refineries in Homs and Banias have stopped operations after Assad’s fall.

Since Russia invaded Ukraine in 2022, the US has imposed strict sanctions on Russian oil exports to curb Moscow’s revenue.

Currently around 180 tankers involved in Russian oil exports are under US sanctions. Companies and financial institutions violating these sanctions could face serious penalties, including civil and criminal charges.

Last year, the US Department of the Treasury’s Office of Foreign Assets Control announced a $7.45 million settlement with State Street Bank for “apparent violations” of Russia-related sanctions.

It is still unknown whether the diesel shipment is for Russian military bases or for the Syrian government.

Tracking data shows that the Prosperity is floating off Syria’s coast, but draft readings say that the cargo has not yet been offloaded.

Many of the Russian shipments are carried out using a network of vessels operating under different flags and ownership structures to evade sanctions.

References: Bloomberg, Telegraph India

Source: Maritime Shipping News