A shortage of letters of credit (L/Cs) is contributing to burgeoning levels of sugar smuggling into Syria.

Syria's domestic sugar refining operations are at a virtual standstill, while intentional sanctions have made it difficult for importers to obtain trade finance.

No sea cargoes

Sanctions imposed by the EU, the US and other western countries in attempts to moderate President Bashar al-Assad's government's response to civil protests are not intended to hamper food imports.

But according to a Syrian trade financier, the sanctions mean that import L/Cs are now very difficult to obtain and that an L/C shortage has led to virtually no sugar shipments arriving by sea.

Smuggling opportunities

Meanwhile, Syria's four sugar refineries have been either closed down or are operating at reduced capacity.

These circumstances have led to opportunities for smugglers to bring sugar into Syria, mainly by truck from neighbouring countries.

Because of the sugar shortage, such overland smuggling by private traders is said to be a highly profitable and increasingly common activity.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.