ABU DHABI: A Syrian purchasing agency has cancelled an urgent tender to buy 135,000 tonnes of white rice, the third state food tender to fail in two weeks as a new payment system to avoid problems from financing sanctions failed to attract traders.
The General Foreign Trade Organisation (GFTO) sought the rice in a tender that closed on August 25. A source at GFTO would not comment on the number of offers received but said another tender for the same quantity would be issued next week.
The tender document, issued on July 28, cited “extreme urgency”. It stated that payment could be made from Syrian bank accounts abroad that have been frozen by Western sanctions.
The European Union, United States and other Western countries have imposed sanctions on President Bashar Al Assad’s government over his crackdown on the revolt in the country. The sanctions do not target food shipments, but a financing freeze has hindered Syria’s ability to import food supplies, including grain and sugar.
In recent weeks the government has offered to pay for food with funds held in frozen bank accounts abroad. But those deals would require sellers to secure permission from European governments to unfreeze the funds. Traders appear to have shied away rather than accept responsibility for unfreezing the money.
The GFTO on Tuesday announced a tender for 276,000 tonnes of white sugar after two previous attempts to buy that same amount failed. reuters
