Russian grain trading company Pallada has filed a lawsuit worth 10.7 billion rubles ($135 million) against Syria’s General Corporation for the Trade, Storage and Processing of Grain, according to documents from the Moscow Arbitration Court released today, Tuesday, December 16.
Reuters reported that Pallada filed the claim against the Syrian state institution, noting that the court database does not include further details.
Pallada was founded in 2022, when major Russian grain traders came under Western sanctions over the military operation in Ukraine. The company quickly grew to become one of Russia’s largest grain trading firms.
This is the second lawsuit Pallada has filed against Syrian government institutions this year.
On June 26, the company filed a lawsuit against the Central Bank of Syria and a state grain company, seeking compensation of 5.6 billion rubles ($71.52 million).
On August 22, the court rejected Pallada’s request for interim measures such as seizing the defendants’ assets in Russia.
Russia, the world’s largest wheat exporter, was a key supplier of wheat to Syria during the rule of ousted President Bashar al-Assad.
Export suspension
On December 13, 2024, days after Assad’s fall, Russia suspended wheat exports to Syria until further notice, citing “uncertainty about the new authorities” and delays in settling previous payments.
Russian company STG Engineering also halted wheat exports to Syria, but said it was ready to resume after establishing contact with the new authorities in Damascus.
STG Engineering’s general director, Dmitry Trifonov, told Russia’s TASS news agency on December 30, 2024, that the company stopped exports after Assad’s ouster, but was prepared to resume once communication channels were opened with the new authorities.
New shipments
Russia delivered a batch of wheat to Syria on April 26, for the first time since the fall of the former Syrian regime, via Latakia (on Syria’s Mediterranean coast) port.
At the time, TASS quoted a trader who used to arrange Russian grain supplies to Syria under the former regime as saying that the ship Pola Marina carried 6,600 tons of wheat to Latakia port.
The unnamed trader said a Russian company organized the delivery, adding that the firm “had not previously been involved” in supplying Russian grain to Syria. He said there was “no talk of resuming regular wheat supplies from Russia to Syria at present,” describing the shipment as “exceptional.”
On November 9, three ships carrying more than 70,000 tons of wheat arrived, two from Ukraine and one from Russia.
A Syrian Grain Establishment official, who asked not to be named, told Enab Baladi that no official decision had been issued to ban imports of Russian wheat.
“We contract with different traders, and they can choose the source of the wheat. What matters to us is the specifications and meeting the technical procurement standards, regardless of whether it comes from Russia, Ukraine, Bulgaria, or elsewhere,” the source said.
Youssef Arnous, head of operations at Tartus Port (on Syria’s Mediterranean coast), told the Syrian Arab News Agency (SANA) that unloading had already begun. Some quantities are being stored in the port’s silos, while the rest is transported directly by trucks and trains in coordination with the Syrian Railways Establishment.
Arnous added that a fourth ship is waiting to unload its 26,000-ton cargo, and that additional ships carrying about 50,000 tons are expected to arrive in the coming days, noting that the port is providing logistical facilities and services in coordination with the relevant authorities.
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