Russian grain trader sues Syrian state agency: Reuters

• A Russian grain trading firm has filed a USD 135 million lawsuit against a Syrian state grain agency, according to court records cited by Reuters.

• The case comes amid disrupted Russian wheat supplies to Syria and mounting pressures on Syria’s grain sector.

A Russian grain trading company has filed a lawsuit against a Syrian government institution seeking 10.7 billion rubles, or about USD 135 million, according to documents from the Moscow Arbitration Court cited by Reuters.

The records show that Pallada, a Russian grain trading firm, lodged the lawsuit against Syria’s General Establishment for Trading, Storing, and Processing Grain on December 10. The court database did not provide further details on the nature of the claim, Reuters reported.

Second lawsuit this year

The case marks the second legal action Pallada has taken this year against Syrian state entities.

In June, the company filed a separate lawsuit against the Central Bank of Syria and a state-owned grain company, demanding compensation of 5.6 billion rubles, or about USD 71.52 million.

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On August 22, the court rejected Pallada’s request for provisional measures, including the seizure of assets belonging to the defendants inside Russia.

Company background

Pallada was established in 2022, at a time when major Russian grain trading firms were facing Western sanctions linked to the war in Ukraine.

The company expanded rapidly and has since become one of Russia’s largest grain traders, according to industry data cited by Reuters.

Wheat supplies to Syria disrupted

Russia, the world’s largest wheat exporter, was a key supplier of wheat to Syria during the rule of Bashar al-Assad.

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However, Russian wheat supplies to Syria have been halted since December 2024 due to payment delays, Reuters reported.

The disruption has added pressure to Syria’s food security at a time of declining domestic production.

Syria’s wheat needs

The country requires more than 2.5 million tons of wheat annually, according to Syria’s General Establishment for Grain.

Agricultural experts say local production has fallen to less than one million tons, compared with about four million tons in previous years.

In response, Syria’s Ministry of Agriculture launched the “interest-free loan” initiative last month to support wheat production for the upcoming season. The program provides farmers with in-kind loans, including seeds and fertilizers, without interest, in an effort to stabilize output and reduce reliance on imports.

The lawsuit adds another layer of uncertainty to Syria’s already strained grain supply chain as legal and financial disputes continue to affect imports.