Exclusive – Idlib Truce and Fear of Coronavirus Spreading in Syria’s Quagmire

A health worker tests an internally displaced Syrian boy as part of security measures to avoid coronavirus, in Azaz, Syria, March 11, 2020. (Reuters)
A health worker tests an internally displaced Syrian boy as part of security measures to avoid coronavirus, in Azaz, Syria, March 11, 2020. (Reuters)
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Exclusive – Idlib Truce and Fear of Coronavirus Spreading in Syria’s Quagmire

A health worker tests an internally displaced Syrian boy as part of security measures to avoid coronavirus, in Azaz, Syria, March 11, 2020. (Reuters)
A health worker tests an internally displaced Syrian boy as part of security measures to avoid coronavirus, in Azaz, Syria, March 11, 2020. (Reuters)

March marked the lowest number of casualties in Syria in nine years of war. “Only 103” civilians were killed, half in air strikes and shelling and the rest in bombings, mines and assassinations. The drop in figures, which is not low at all by the standards of other countries, to half of what it was in February can be attributed to a number of reasons. It can be due to ending the pursuit of the “military victory” as much so as the concern over the spread of the novel coronavirus in devastated Syria:

1- Russian-Turkish ceasefire
Russian President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdogan struck the truce in Moscow on March 5. It put on hold regime plans, with Russian support, for a widescale offensive against the northwestern Idlib province that had led to the displacement of nearly one million people since December. The deal included setting up a safe zone along the Aleppo-Latakia highway and deploying Russian-Turkish patrols. The execution was not as easy as predicted because the patrols were met with local protests, forcing Ankara to mobilize its own patrols along the international highway. Damascus vowed to retaliate by launching a military offensive, citing Ankara’s lack of commitment to pledges, a threat that did not sit well with the Kremlin.

2- Russian intervention
A week after striking the Moscow deal, Putin dispatched Defense Minister Sergey Shoigu to Damascus to deliver a message to the Syrian leadership on the need to commit to the agreement and refrain from launching military operations in Idlib. With this move, Moscow was seeking to give Ankara more time to fulfill its pledges. Moreover, Putin believes that maintaining relations with Turkey is more important than the situation in Idlib, at least at the moment. This all does not mean that he will cease exerting pressure on Erdogan.

3- UN call for a ceasefire
UN chief Antonio Guterres had called for a global ceasefire as the world comes to grips with the coronavirus outbreak. His remarks were followed by a similar plea by UN special envoy to Syria, Geir Pedersen, who urged Syrian parties to adopt a comprehensive and immediate truce so that attention can be focused on fighting the pandemic.

4- Coronavirus
Syria is more vulnerable than other countries to the outbreak given the devastation caused by years of war and the decimation of its healthcare system. Realizing the danger, local and foreign powers are prioritizing the virus fight at the moment. Some foreign forces are, however, still trying to exploit the fragile truce to boost their military positions, see the ongoing Syrian, Turkish and Iranian reinforcements on all fronts, but at the same time, they are preoccupied by their own country’s fight against the outbreak. Shoigu underlined this point during his Damascus visit when he demanded that the regime seriously and transparently handle the outbreak. It was no coincidence that his office circulated a video of him undergoing a virus test on his flight back to Moscow.

5- Disengagement
Russia and the United States are still committed to a military deal that prevents their armies from clashing in the region east of the Euphrates River, an issue noted by Pedersen during a briefing before the UN Security Council just days ago. “I appreciate the fact that arrangements between key stakeholders in the northeast, including Russia, Turkey and the United States, as well as Syrian parties, also continue to broadly hold,” he said.

6- Local forces
The regime, Idlib factions and the autonomous Kurdish administration, have imposed curfews in areas under their control and suspended fighting as a preventive measure against the coronavirus. Pedersen noted this, saying: “The Syrian government has taken increasingly significant steps to counter COVID-19. Large parts of the country are now under varying degrees of curfew, with public spaces closed and healthcare systems preparing to the extent possible. Meanwhile, the Syrian Opposition Coalition and other de facto authorities in areas outside government control have also taken steps. Syrian civil society, including women-led organizations, are also mobilizing against this threat. I note these efforts and urge the Syrian government and all de facto authorities to be transparent in their reporting on how COVID-19 is affecting all Syrians.”

Despite these efforts, Pedersen warned that the situation could boil over. “In both the northeast and northwest, there is a real risk of hostilities resuming,” he told the council. “If that happened, the pre-existing dangers to civilians would be multiplied by the pandemic and the virus would spread like wildfire, with devastating effects for the Syrian people – humanitarian, societal and economic. It could rebound across international borders.”



Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
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Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH

Iran's Revolutionary Guards have tightened their grip on the country's oil industry and control up to half the exports that generate most of Tehran's revenue and fund its proxies across the Middle East, according to Western officials, security sources and Iranian insiders.

All aspects of the oil business have come under the growing influence of the Guards, from the shadow fleet of tankers that secretively ship sanctioned crude, to logistics and the front companies selling the oil, mostly to China, according to more than a dozen people interviewed by Reuters.
The extent of the Iranian Revolutionary Guard Corps' (IRGC) control over oil exports has not previously been reported.

Despite tough Western sanctions designed to choke Iran's energy industry, reimposed by former US President Donald Trump in 2018, Iran generates more than $50 billion a year in oil revenue, by far its largest source of foreign currency and its principal connection to the global economy.

Six specialists - Western officials and security experts as well as Iranian and trading sources - said the Guards control up to 50% of Iran's oil exports, a sharp increase from about 20% three years ago. The sources declined to be identified due to the sensitivity of the matter.

Three of the estimates were based on intelligence documents about Iranian shipping while others derived their figures from monitoring shipping activity by tankers and companies linked to the IRGC. Reuters was unable to determine the exact extent of the IRGC's control.

The IRGC's growing domination of the oil industry adds to its influence in all areas of Iran's economy and also makes it harder for Western sanctions to hit home - given the Guards are already designated as a terrorist organization by Washington.

Trump's return to the White House in January, however, could mean tougher enforcement of sanctions on Iran's oil industry. The country's oil minister said Tehran is putting measures in place to deal with any restrictions, without giving details.

As part of their expansion in the industry, the Guards have muscled in on the territory of state institutions such as the National Iranian Oil Company (NIOC) and its NICO oil trading subsidiary, according to four of the sources.

When sanctions hit Iran's oil exports years ago, the people running NIOC and the wider industry were specialized in oil rather than how to evade sanctions, added Richard Nephew, a former deputy special envoy for Iran at the US State Department.

"The IRGC guys were much, much better at smuggling, just terrible at oil field management, so they began to get a larger control of oil exports," said Nephew, who is now a researcher at Columbia University.
The IRGC, NIOC, NICO and Iran's foreign ministry did not respond to requests for comment.
RISK APPETITE
The IRGC is a powerful political, military and economic force with close ties to Supreme Leader Ali Khamenei.
The Guards exert influence in the Middle East through their overseas operations arm, the Quds Force, by providing money, weapons, technology and training to allies Hezbollah in Lebanon, Hamas in Gaza, Yemen's Houthis and militias in Iraq.
While Israel has killed a number of senior IRGC commanders over the past year, the oil specialists in its ranks have been able to continue their operations, two Western and two Iranian sources said.
The Iranian government began allotting oil, instead of cash, to the IRGC and Quds Force around 2013, according to Nephew.
The government was under budgetary pressure then because it was struggling to export oil due to Western sanctions imposed over Iran's nuclear program.
The IRGC proved adept at finding ways to sell oil even under sanctions pressure, said Nephew, who was actively involved in tracking Iranian oil activities then.
Iranian oil revenues hit $53 billion in 2023 compared with $54 billion in 2022, $37 billion in 2021 and $16 billion in 2020, according to estimates from the US government's Energy Information Administration.
This year, Tehran's oil output has topped 3.3 million barrels per day, the highest since 2018, according to OPEC figures, despite the Western sanctions.
China is Iran's biggest buyer of oil, with most going to independent refineries, and the IRGC has created front companies to facilitate trade with buyers there, all the sources said.
Oil export revenues are split roughly evenly between the IRGC and NICO, said one source involved in Iranian oil sales to China. The IRGC sells oil at a $1-$2 barrel discount to prices offered by NICO because buyers take a bigger risk buying from the Guards, the person said.
"It depends on a buyer's risk appetite, the higher ones will go for the IRGC, which the US designates as a terrorist group."
Two Western sources estimated that the IRGC offered an even bigger discount, saying it was $5 per barrel on average but could be as much as $8.
The oil is allocated directly by the government to the IRGC and Quds Force. It's then up to them to market and ship the oil - and work out a mechanism for disbursing the revenue, according to the sources and intelligence documents seen by Reuters.
NIOC gets a separate allocation.
CHINESE FRONT
One of the front companies used is China-based Haokun. Operated by former Chinese military officials, it remains an active conduit for IRGC oil sales into China, despite Washington hitting it with sanctions in 2022, two of the sources said.
The US Treasury said China Haokun Energy had bought millions of barrels of oil from the IRGC-Quds Force and was sanctioned for having "materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF".
In one oil transaction dated March 16, 2021 involving Haokun and parties including Turkish company Baslam Nakliyat - which is under US sanctions for its trading links to the IRGC - a payment was processed via US bank JP Morgan and Turkish lender Vakif Katilim, according to the intelligence documents.
The transaction took place before the companies were sanctioned. Reuters has no indication JP Morgan or Vakif Katilim were aware of the Iranian connection - highlighting the risks of companies getting inadvertently caught up in the shadow trade.
JP Morgan declined to comment. Vakif Katilim said in a statement: "Our bank performs its activities within the framework of national and international banking rules."
Haokun declined to comment. Baslam did not respond to a request for comment.
'GHOST FLEET'
Quds Force commander Qassem Soleimani, who was killed in a US strike in Baghdad in 2020, had set up a clandestine headquarters and inaugurated that year for the unit's oil smuggling activities, initially staffed by former oil minister Rostam Ghasemi, according to the intelligence documents.
Reuters could not determine where all the oil money funneled through the IRGC goes. The IRGC headquarters and day-to-day operations has an annual budget of around $1 billion, according to assessments from two security sources tracking IRGC activities.
They estimated that the IRGC budget for Hezbollah was another $700 million a year.
"Exact figures remain undisclosed, as Hezbollah conceals the funds it receives. However, estimates are that its annual budget is approximately $700 million to $1 billion. Around 70%-80% of this funding comes directly from Iran," Shlomit Wagman, former director general of Israel’s Money Laundering and Terrorism Financing Prohibition Authority, said separately.
Hezbollah did not respond to a request for comment.
The former Secretary General of Hezbollah, Hassan Nasrallah, who was killed in an Israeli airstrike, said Iran provided the group's budget, including for salaries and weapons.
Iran's main tanker operator NITC, which previously played a key role in exports, also now provides services to the IRGC.
It executes ship-to-ship transfers of Iranian oil onto vessels operated by the IRGC to ship crude into China, according to sources and ship-tracking data. Such transfers are common practice to help disguise the origin of the oil tankers carry.
NITC did not respond to a request for comment.
In August, Israel's National Bureau for Counter Terror Financing, part of the country's defense ministry, imposed sanctions on 18 tankers it said were involved in transporting oil belonging to the Quds Force.
In October, the US Treasury slapped sanctions on 17 separate tankers it said formed part of Iran's "ghost fleet", outside of NITC vessels. It followed up with sanctions on a further 18 tankers on Dec. 3.