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Updated: Maltese-flagged tankers used to transport Syrian oil to be struck off register within a month

Iranian ships registered in Malta which were being used in the transport of oil from Syrian in breach of sanctions were to be struck off the Maltese register within a month, the government said.

Reacting to a report that a Maltese-flagged tanker is providing a lifeline to the regime of Bashar al-Assad by shipping Iranian oil to China, in violation of EU sanctions, the foreign and transport ministries said they took immediate action last week as soon as it became known that some Malta-registered Iranian vessels could be involved in the transport of oil from Syria in breach of sanctions.

Following the necessary verifications with the owners of the vessels, including the MT Tour, a decision was taken to immediately suspend the ships’ registration certificates and strike them off the register within a month.

As always, Malta remained committed to implement UN and EU sanctions in a rigorous manner, the government said.

Iran is currently helping its ally Syria defy Western sanctions by providing a vessel to ship Syrian oil to a state-run company in China, potentially giving the government of President Bashar al-Assad a financial boost worth an estimated $80 million.

Iran, itself a target of Western sanctions, is among Syria's closest allies and has promised to do all it can to support Assad, recently praising his handling of the year-long uprising against Assad in which thousands have been killed.

China has also shielded Assad from foreign intervention, vetoing two Western-backed resolutions at the United Nations over the bloodshed, and is not bound by Western sanctions against Syria, its oil sector and state oil firm Sytrol.

"The Syrians planned to sell the oil directly to the Chinese but they could not find a vessel," said an industry source who added that he had been asked to help Sytrol execute the deal but did not take part.

The source named the Chinese buyer as Zhuhai Zhenrong Corp, a state-run company hit by U.S. sanctions in January.

A Zhuhai Zhenrong spokeswoman said: "I've never heard about this." She declined further comment.

The U.S. State Department said in January that Zhuhai Zhenrong was the largest supplier of refined petroleum products to Iran, on which the West has imposed sanctions because it suspects Tehran of trying to develop nuclear weapons.

China's willingness to start importing Syrian oil offers a rare break in the country's growing isolation.

Syria, a relatively modest oil exporter, has been unable to sell its crude into Europe, its traditional destination until September last year when European Union and U.S. sanctions halted exports.

The crude oil cargo, worth around $84 million assuming a discounted price of about $100 a barrel, could provide Assad with much-needed funds after another round of sanctions designed to further isolate the country's ailing economy were imposed by the European Union last week.

Syria's Sytrol, which has been on the EU and U.S. sanctions list since last year, referred calls to the country's oil ministry. No one answered repeated calls by Reuters at the oil ministry. Iranian authorities were not available to comment.

The source added Sytrol had enlisted contacts in Venezuela to help find a vessel that could pick up the cargo. The problem was ultimately resolved by the Iranian authorities, who sent the tanker M.T. Tour to take on the cargo.

The Maltese-flagged tanker is owned by shipping firm ISIM Tour Limited, which has been identified by the U.S. Department of Treasury as a front company set up by Iran to evade sanctions.

The M.T. Tour reached the Syrian port of Tartus at the weekend, where it loaded the 120,000 metric tonne (132,277 tons) cargo of light crude oil, according to the industry source and shiptracking data.

Satellite tracking showed the vessel was last spotted near Port Said in Egypt, where is was due to arrive on Wednesday. Its final destination was not available but the industry source said the vessel was likely to head to China or Singapore.

"I was asked to provide an option to ship to southern China or Singapore," the source said.

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Christopher Grainger

Apr 1st 2012, 23:12

I believe the term is Dagenham, ie one stop short of Barking, or perhaps just plain Barking is better.

Christian Sciberras

Apr 1st 2012, 23:43

If USA/France/UK wanted all of us dead, couldn't it have happened AGES ago?

James Tyrrell

Apr 2nd 2012, 01:48

Perhaps I'm losing something in your translation here but are you saying there is something funny about British troops coming home in body bags? I would really like to know as I have friends about to leave for Afghanistan and it would be interesting to hear the thoughts of some bloody idiot who would probably never have the balls to put his life on the line for anything!

Donna Mercieca-Gabriele

Apr 2nd 2012, 07:52

Mr Caruana, I may not agree with James Tyrell, but your comments are truly offensive. Your deranged rant shows that you are ill-informed and anti-israel, no matter the evidence. World peace is threatened by many mad-men, and yes the leader of Iran is one of them. This is a country that has proved time and again they are prepared to kill innocents, and they have spoken of their desire to wipe out an entire race, namely the Jewish people. Imagine if the world had reacted your way in 1939.......

Carmel Vella

Apr 1st 2012, 22:09

Andf yet, the USA still does business with CHINA.

Mr Tony Gatt

Apr 1st 2012, 23:47

@ Carmel Vella
Indeed- and America is in hock to the tune of billions of Dollars to China.
But Syria is the latest 'hot potato' in the Middle East, and an ally of Iran, which is hostile to Israel and is supposed to be building a nuclear arsenal; meanwhile Israel has nuclear weapons and has broken more United Nations resolutions than any other country.
The Americans have extradited a British businessman from the U.K. for selling batteries which could be used in missiles to Iran.
Who knows how the Americans will react to anything?

Andreas Moser

Apr 1st 2012, 13:04

And Iran is such a peaceful country: http://andreasmoser.wordpress.com/2012/03/05/iran-wants-peace/ , isn't it?

James Tyrrell

Apr 1st 2012, 13:19

There is nothing Iran would like better than to be left alone to develop its nuclear weapons program and if that is allowed to happen then the whole world will certainly be in danger. I don't agree with taking sanctions against Iran. What we should be doing is pulling all our troops out of Afghanistan where we are doing no good whatsoever and going to war with Iran who are a threat to the entire world mainly due to the fact that their leader is a total madman.

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