Iraq is quietly shipping vital supplies of fuel oil to Syria in a deal that has triggered concern in Washington and exposes Damascus’s difficulties in keeping its economy afloat in the face of a growing civil war and economic sanctions.
Nouri al-Maliki’s Baghdad government agreed in June to supply 720,000 tons of fuel oil to Syria in monthly shipments as part of a one-year, renewable supply contract, according to commercial documents seen by the Financial Times.
In June and July, Baghdad’s oil ministry delivered two shipments of fuel oil, which is used for power generation, worth US$14m, to President Bashar al-Assad’s regime. Syria paid in cash, the documents show.
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