Iraq has started importing petrol through Syria, an Oil Ministry official said on Sunday, in a significant deepening of ties with Damascus as Baghdad deals with disruption to its trade through the Strait of Hormuz, and as the US pushes for closer relations between the two countries.
Iraq is using an overland trade route through Syria to export fuel oil and import petrol.
In April, Syria became the main route for Iraqi fuel oil exports, partially compensating for the disruption to shipments caused by the war in Iran.
At least 2.1 million tonnes of Iraqi fuel oil have also flowed by lorry to Syria's Baniyas since then.
The Iraqi Oil Ministry official told The National that the first cargo of imported petrol, comprising 32,000 tonnes, was being unloaded at the Baniyas refinery, to be transported to Iraq by lorries.
Seventy-seven lorries carrying the fuel then departed Baniyas for the Iraqi border, Reuters reported. Another ship loaded with petrol bound for Iraq was sailing to Baniyas.
Iraq is a major crude oil producer, but faces petrol shortages because of problems with its refineries and the management of its energy infrastructure.
A transit deal for the petrol has been concluded between Iraq’s oil marketing arm, Somo, and Qatar's UCC Holding, the official said. UCC Holding is owned by the Al Khayyat brothers, Syrian-Qatari businessmen who are well connected in Washington.
A Syrian official told The National last week that the issue of increasing fuel oil flows through Syria was discussed at a meeting in New York between Syrian President Ahmad Al Shara and Iraqi Prime Minister Ali Al Zaidi.
Thomas Barrack, the US special envoy to both countries, attended the meeting. However, Syria wants Iraq to screen tankers for security threats before they cross the border, the official said.
The post-Bashar Al Assad order in Syria and sections of the political system in Iraq that enjoy close ties to Iran clash ideologically. Iraqi militias supported by Iran were among the main backers of Mr Al Assad and played a major role in shoring up his rule against the popular revolt in 2011.
The US has tried to steer transport routes to its advantage in Iraq and Syria since the Iran war broke out in February. Under US auspices, the two countries agreed in July to overhaul and reactivate an oil pipeline between Iraq’s northern oil centre of Kirkuk and Syria's port of Baniyas. The project also involves Qatar's UCC Holding.
