Economic Researcher: Europe sanctions are harmful… but it will not cripple economy

Options Are still open for Syrian oil, despite the European sanctions on its import, inside the continent, so that this oil can find other markets despite that the costs of this trade will increase and will reduce profits. Syrian economist Researcher Nabil Sukkar, believes that these sanctions «will not cripple Syrian economy but it will weaken their going forward »especially in light of the problems facing the economy in general.

Sukkar said in a statement to Assafeir newspaper, said: “Syria can in the interim period between today and the application of the ban in November to make arrangements to sell in other markets through companies and other carriers, but the disadvantages of this option is that it will be forced to accept a lower price for the sale of crude oil It also will have to accept the higher price of the derivatives to be purchased. ” Which is, economists, analysts say it could range between 10 and 15 percent of the normal price for the sale and import of Syrian oil derivatives.

China and the rest of the East Asian countries like India are eligible for this option, says Sukkar The sale and purchase of material such as crude oil were engaged away from the international control sometimes, where are the deals and turn into oil tankers on the high seas, as being speculative and agreements on the price in different places of the world.

But in any case he believes that the sale will affect on the resources of the state budget, and on the resources of foreign exchange, which may affects the reserves accumulated from the state to nearly 17 billion dollars. He added that «the cost of spending will increase because of the support provided by the State of petroleum products» which allows an increase of budget deficit and increase the trade deficit. But he also finds that the Syrian economy in crisis can also rely on the private sector, which contributes about 67 percent of national income, and therefore can bear the burden of the state.

So far, the fear is that Europe imposed a ban on oil companies to stop work in Syria, which Sukkar sees away until the moment because of the interests of these companies in Syria, and the capacity of the pressure which has in the world. He believes that this option in the case would have been a huge impact on the economy, because it would mean the cessation of production of oil until the time of provide new second class oil companies to account for the existence of giant oil companies in both Europe and America.