Russia’s invasion of Ukraine prompts Syrian government to cut spending

Russia’s invasion of Ukraine prompts Syrian government to cut spending
February 25, 2022, 9:09 am

Syria’s parliament/Facebook page

The Arab News reported, citing the the Associated Press, SANA, the Syrian state news agency said that the government decided Thursday to cut spending in an effort to reduce the impact of Russia’s invasion of Ukraine, concerned that oil and wheat prices could sharply increase.

SANA reported that after an extraordinary Cabinet meeting, officials decided to manage reserves of main staples such as wheat, sugar, cooking oil and rice for the next two months, closely watch the distribution of the commodities and ration them.

Syria’s economic minister, Mohammed Samer Khalil, said Crimea offered to export wheat to Syria. He said the Syrian government is considering the offer. SANA said the government also decided to closely monitor the exchange rate and to “ration public spending in a way that only covers priorities during this period.”

Syria, struggling after more than a decade of war, relies mostly on wheat imports from Russia and oil shipments from its other ally, Iran. As Russia pounded Ukraine Thursday, Syrian authorities saw danger signs in rising oil prices on both sides of the Atlantic and wholesale prices jumped for heating oil, wheat and other commodities.

Al-Thawra street-Local market in Damascus

Russia’s war effort turned Syria’s government toward managing its own resources. SANA, the state news agency, said the issue was discussed during an extraordinary Cabinet meeting on Thursday about the path forward given the Russian invasion.

The decision came as oil prices on both sides of the Atlantic jumped toward or above $100 per barrel to their highest levels since 2014, up more than 6 percent.

The country’s largest oil wells are under the control of US-backed Kurdish-led fighter in the country’s east, depriving the government access to them. The country’s fertile agricultural areas, where wheat is planted, are also out of government control.

Syria humanitarian needs reach record high since crisis began

The Syrian government move came hours after the UN warned that 14.6 million people are in need of aid in war-torn Syria, an increase of 1.2 million people compared with last year. The report by the Office for the Coordination of Humanitarian Affairs was released late Wednesday.

Source: arabnews

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