Russia's invasion in Ukraine causes Syria to reduce spending

The government of economically-battered Syria decided Thursday to cut spending in an effort to reduce the impact of Russia's invasion of Ukraine, concerned that oil and wheat prices could sharply increase, the state-owned news agency said.

Russia's invasion in Ukraine causes Syria to reduce spending

SANA reported that officials decided after an extraordinary Cabinet meeting to manage main staples like wheat, sugar and cooking oil for the next two-months, closely monitor the distribution and ration them.

Mohammed Samer Khalil (Syrian economic minister) said that Crimea had offered to send wheat to Syria. According to him, the Syrian government was considering the offer. SANA reported that the government had also decided to monitor the exchange rate closely and to "ration public expenditure in a manner that only covers priorities during the period."

Syria is struggling after more than 10 years of war and relies heavily on oil shipments from Iran and wheat imports from Russia. Russia's attack on Ukraine brought about the danger sign that oil prices were rising on both sides. Wholesale prices rose for heating oil and wheat, and this was a warning sign.

Russia is President Bashar al-Assad's main supporter and its military intervention in 2015 helped tilt the balance in his favor. The Russian allies described the attack on Ukraine as a military operation to maintain their national security and stability.

Russia's war effort in Syria turned the government towards managing its own resources. The state news agency SANA reported that the topic was raised during a Cabinet meeting on Thursday. It concerns the future of Syria's government in light of the Russian invasion.

This decision was made as oil prices on both coasts of the Atlantic rose to or above $100/barrel, their highest level since 2014. They also increased more than 6%.

The conflict in Syria that started in March 2011 left almost half a million people homeless and forced the country to revert to its pre-war population, which was 23 million. There have been severe shortages of fuel and wheat as a result of the war. Today, the dollar is equivalent to about 3,600 Syrian pounds as compared to 47 pounds at the beginning of the conflict.

The U.S.-backed Kurdish fighters in the country's eastern region have taken control of the country's largest oil fields, denying the government access. The government is also unable to control the fertile agricultural areas of the country, where wheat can be planted.

On Thursday, Russia invaded Ukraine. It hit cities and bases with bombings and shelling. Civilians piled into cars and trains to flee. According to the Ukrainian government, Russian troops and tanks crossed the border with their tanks in a "full scale war" that could have rewritten the geopolitical order. The fallout has already been felt around the globe.

Hours after U.N. warned that 14.6million people were in dire need of assistance in war-torn Syria, the government of Syria made this announcement. This is an increase of 1.2million people compared to last year. Late Wednesday's Office for the Coordination of Humanitarian Affairs released the report.

The U.N. and its partner are reaching 7 millions people each month, but "more support is needed," tweeted Mark Cutts (Deputy Regional Humanitarian Coordinator of the U.N. for the Syria Crisis).

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