JPMorgan facilitates oil product transactions between Syria and Saudi Arabia.

Reuters Banias, October 20 - A senior Syrian energy official told Reuters that JPMorgan Chase Bank in the United States helped Syria open its first letter of credit in more than ten years, enabling the country to reach a commercial agreement this month with Saudi Aramco (2222.SE) for fuel products.

This move marks an important step in restoring international banking channels nearly two years after former Syrian President Bashar al-Assad was overthrown.

After years of isolation, Syria’s new leadership has prioritized rebuilding the country’s political and financial relations. The United States lifted its comprehensive sanctions on Syria last year and removed Syria from the “State Sponsors of Terrorism” list in August last year.

The Central Bank of Syria stated in a declaration on October 11 (link) that it had opened the first letter of credit in 14 years through a major U.S. financial institution to support the transaction with Saudi Aramco, but did not reveal the bank’s name.

Mohammad Qawja, executive director of financial affairs at Syrian Petroleum Company (SPC), said JPMorgan’s role was to “confirm the issued letter of credit and guarantee its execution.”

He said that under the agreement, Syrian Petroleum Company has already received 65,000 tons of diesel, and hopes that future supplies can be expanded to gasoline and then to light crude oil.

“In view of the current situation in the region—for example, the sharp rise in global fuel prices and difficulties in securing supply and supply chain for oil products and crude oil—this agreement first ensures the supply of fuel for Syria’s domestic market,” Qawja said, adding that the letter of credit offers more flexibility in managing payment obligations.

JPMorgan declined to comment on the arrangement.

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