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| Syria rummages around for other markets after EU oil embargo |
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 DAMASCUS, (Xinhua) -- Oil embargo lately slapped by European countries on Syria would inevitably overburden its stagnant economy, but experts believe that the country that has been put into a tight squeeze after nearly six months of unrest is still able to withstand the sanctions and find alternatives.The European Union (EU) imposed Friday sanctions on Syria's energy sector which is one of Syria's few lifelines. The EU move came in harmony with earlier sanctions imposed by the United States on Syria in an effort to tighten the screws on Syria and further squeeze its economy, which is likely to hasten the collapse of the Syrian regime that was widely censured for alleged violent crackdown on protesters. Experts believe that the U.S. oil embargo has a limited impact as Syria does not export oil to America and it didn't prohibit foreign companies from working in Syria. Yet, sanctions by EU members are deemed to be relatively significant. Syria exports some 150,000 barrels of oil per day, with the vast majority going to the European Union. Oil trade earns Syria 28 percent of its annual revenue. George Jabbour, a parliamentarian and a political analyst, told Xinhua that those sanctions would harm Syrian citizens, adding: "Using those sanctions as a political weapon is immoral." Khaled al-Aboud, another parliamentarian, told Xinhua the sanctions would reverberate on Europe itself, which he said "should also look for an alternative to the Syrian oil." Ahmed al-Haj Ali, a political analyst, said the sanctions are not merely economic. "The sanctions are used as a political tool to cripple the Syrian economy ... They are also a reflection of the actual U.S. political stand that aims to increase pressure on the Syrian government," he said. The EU ban covers the purchase, import and transport of oil and other petroleum products from Syria. The embargo takes effect Saturday, but existing contracts can be fulfilled until Nov. 15. The sanctions have been blasted by Russia, which has said it won't go along with them. Syrian experts, while downplaying the impact of the EU and U.S. embargo, look at Russia and some other countries as the most reliable saviors that could fill the void. They suggested that Syria should trade crude oil with oil derivations with countries that maintain good relations with it. The other available alternative is for Syria to conclude a deal with foreign refineries that would rectify the Syrian crude oil and change it into oil derivations. The third alternative, which is most preferable, is for Syria to conclude long-term contracts with friendly countries to draw the Syrian oil and supply Syria with oil derivations in return, they said. Jabbour said: "If Europe refrained from purchasing the Syrian oil, this didn't mean that this oil will not be sold ... There are always other available markets ... The Asian markets welcome the Arab oil." Abboud concurred, saying: "I believe that the Syrians have already prepared themselves for such sanctions ... There are oil ties binding Syria with Iraq and Iran, and I believe that Syria's oil deals could pass through this triangle." Recent statistics by the Syrian Oil Ministry revealed that Syria produces more than three quarters of its needs of oil derivations. Syria is however still considered a relatively small producer of oil as its contribution to the world oil output did not exceed 0.5 percent in 2010. Oil production peaked in 2001 to reach 581,000 barrels a day. It declined in 2009 to reach 375,000 barrels per day. It nevertheless improved to 385,000 barrels in 2010 when new fields started operating. Syria's oil reserve amounted to 2.5 billion barrels by the end of 2010, around 0.2 percent of the world's reserve.   Socialize this Subscribe to our RSS feed to stay in touch and receive all of TT updates right in your feed reader
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