SANCTION BUSTERS
Airports Company SA moves to bypass Western sanctions so it can refuel Russian planes
The move by Airports Company South Africa follows two incidents last year where Western oil companies refused to refuel Russian aircraft in Johannesburg and Cape Town.
Airports Company South Africa (Acsa) is changing operations at its airports to ensure that Russian aircraft – which are sanctioned by Western governments – can still refuel in this country.
This is in response to two incidents last year where Russian aircraft which landed at OR Tambo International Airport in Johannesburg and Cape Town International Airport could not refuel because of Western sanctions.
Acsa CEO Mpumi Mpofu told Parliament’s Transport Portfolio Committee on Tuesday that, historically, Acsa did not supply fuel to aircraft. Refuelling and providing other supplies was contracted out to oil companies and refuelling and “through-putting” companies. They leased fuel hydrants and tanks from Acsa.
During the two incidents when Russian aircraft landed last year, “the fuel consortium and through-putters could not refuel the aircraft, citing sanctions imposed by their countries of origin and their own internal policies”, she said.
Independent operating company
So now Acsa was planning to separate the oil companies from the refuellers and “through-putters” by creating its own independent refuelling and through-putting company. The oil companies would only provide the fuel, and the new independent operating company would do the refuelling and decide which aircraft could be refuelled.
“Acsa will separate the two components of fuel supply process at the airport, operation (fuel tanks, fuel hydrant, ownership of movable into-plane equipment), and thru-putting (supply of jet fuel),” Mpofu’s Powerpoint presentation to the committee said.
“Acsa will appoint an operator and the oil companies will only be able to supply the jet fuel.
“The operator will invest in the movable into-plane equipment and operate the tanks and fuel hydrant on a fee basis to the oil companies in fulfilment of their contracts with airlines.
“Both the operator and through-putter arrangements will allow Acsa an opportunity to introduce meaningful transformation of the space.
“Refusal by Fuel Consortium and/or Through-Putters to refuel aircraft from sanction countries will be averted.”
It would give Acsa better control of the assets it owned and enable it to better execute its legal mandate to supply fuel across its network, he said in the presentation.
Interim arrangement
Mpofu said an interim arrangement was being negotiated with the fuel supply operators to allow Acsa to put out tenders for the new operator.
With the expiry of the contract at the end of September 2022, an interim arrangement has been negotiated with the fuel supply operators to allow the conclusion of Acsa supply chain processes to go out on tender.
Giving the refuel and through-putting contract to a new independent operator would “deal with a scenario where a sanctioned friend of the South African government needs servicing and refuelling”, Mpofu’s Powerpoint presentation said.
Oddly, that section of the Powerpoint presentation is titled, “Refusal of oil companies to fuel Russia and Ukrainian aircraft”. There is no mention in the presentation of any incident where oil companies refused to refuel a Ukrainian aircraft.
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ANC MPs were incensed by the refusal of international oil companies to refuel the Russian aircraft last year and had been pushing hard for Acsa to change the arrangements at airports to allow Russian aircraft to be refuelled.
Acsa’s announcement coincides with a controversial joint maritime exercise involving the South African, Russian and Chinese navies off the KwaZulu-Natal coast, which has prompted considerable criticism from Western governments that South Africa has abandoned its proclaimed “non-aligned” stance on Russia’s war against Ukraine.
The naval drill, named Exercise Mosi II, will be under way on Friday, which marks the first anniversary of Russia’s invasion of Ukraine.
Western diplomats and others have said this timing is unfortunate, suggesting not only that South Africa is helping to develop Russia’s naval warfare skills through the joint exercise, but is also being perceived as joining Russia in celebrating its invasion of Ukraine. DM
Not another Mpofu?Putting mhstcfeel like SA is a province of theirs, run by cANCer
The ANC seems to have forgotten that it was ‘sanctions’ that brought the apartheid regime to its knees. But because of ‘Soviet’ support during those years (not Russian – how things have ‘changed’) , it continues to misplace its misguided efforts to support psychopath Putin. I guess that is what happens when semi-autocratic (state captured) and autocratic regimes ‘find each other’ ?
One can only hope the next Russian planes will be bringing Eiskom relieving ‘sanctions’ via ACSA to the ANC ! Maybe even a Mantashe-vetted ‘nuclear’ deal with which Putin continues to threaten the ‘west’ with … as if HE is going to outlive it by heading into his nuclear bunker!
“It would give Acsa better control of the assets it owned and enable it to better execute its legal mandate to supply fuel across its network, he said in the presentation.”
“Better control of the assets”. Can there be scarier words in South Africa?
It amazing how the anc goes with the flow. When they were legitimately fighting for human rights, they wanted the entire world to denounce RSA. Now that Russia is committing war and modern day colonization, the anc is cool with it. They have lost all credibility and the right to ever take the high road.
“A new independent company has been formed?” Sounds like the Acsa CEO has got himself a lovely little nest egg – at the expense of SA’s reputation and taxpayers money….yet again!
I find this distressing actually. Have recently read Bill Browder’s Red Notice and am currently in the middle of Freezing order and to me there are so many ways in which the Putin government behaves which the ANC actually appears to be replicating – corruption, lies, a narrative that appears to have little to do with fact. It is very clear that the ANC is NOT neutral at all! In fact they appear to me to be very much aligned with the Putin regime.
Obvious and Disgraceful!
It is not possible to obviate US sanctions in the way ACSA thinks it can do. Instead they will inserting ACSA and its executives as part of the people who are cooperating with designated countries that are sanctioned by the US. As we are entering the decisive phase of the war, with resources being poured into Ukraine, the countries that are putting the resources at the disposal of Ukraine will no longer regard this conduct as peripheral but will be given the attention it deserves. To put a company that is important in the operation of airports into jeopardy because of one or two Russian flights that are for Russian public relations is not only stupid but irresponsible by those who run ACSA. The clowns
forget that there are elections next year and the dalliance with Russia is coming to an end and they ought to be very careful of their conduct. If they are pleasing the permanent stooges in the ANC administration at the risk of the company and some countries banning flights to our country they will have to be made to pay.
I’m starting to think the ANC never cared about liberation or human rights, just power. How else has it come to supporting a clearly genocidal regime? This is a warning to all people who vote ANC. They never cared about liberating anyone. They’re just biding their time until they can turn SA into an oligarchy where only those in power have rights.
In a country where people have an “inalienable” right to choose their leaders, but that right turns out to be “alienable” in exchange for a yellow, green and black t-shirt with a half loaf of bread or bowl of pap, you will never have an accountable government.
Soon no USA registered planes will be allowed into SA (by USA law) and no SA registered planes will be allowed into the USA
Sadly the ANC, like the EFF, have this spiritual – and I’m guessing financial bond – with Putin built on Russia’s Soviet past. The joke is Russia doesn’t cares about Africa.
The jet fuel that would be supplied to this new ACSA front company would still have to be sourced either from a local refinery or a local company importing petroleum products on a large scale. The source of this fuel can be traced and publicly identified. That being the case the South African motoring public can simply decide not to support that errant refinery or supplier when “filling up”. I suggest any greedy or amoral potential player in this deviant supply chain think twice before involving themselves in a short term sanctions busting arrangement.
The West should impose full sanctions on South Africa to bring down this criminal regime. SA should also be kicked out of world sport because of its racist and discriminatory policies.
What happens if the oil companies decide not to supply jet fuel
I just hope that the citizens of this country eventually see the light and vote out the ANC. How can any country support Russia’s aggression against Ukraine. Despicable.
If you sleep with dogs you always end up catching their fleas……….
Sanctions busting aside, the most worrying aspect of this project is that the fueling equipment will be kept and maintained by ACSA. How long until fuel is contaminated during handling or the equipment falls into disrepair? Currently the oil companies own and maintain this equipment and have an interest in ensuring that it is maintained. ACSA wont give a fig. Nothing good can come of this unless you’re an ACSA tenderpreneur.
This is sanctions busting. SA could pay dearly for this shortsighted action by our useless government.
Now the world can see the ANC for what it really is……a two headed snake with a forked tongue.
Bye bye ACSA. Another business decision based on political considerations. It does not make any business sense. Ideology over economy … it never works. Ask the old Soviet Union. O no, you cannot, they don’t exist anymore.
It would be more relevant and advisable if ACSA were to fix the airports. OR Tambo is currently frustrating passengers with broken toilets, non-working travellators and parking boom gates. But hey, why stay in your lane when you can ensure further reputational damage to the tourism industry.
Acsa is yet another funding vehicle for the criminal state. Are you aware that roughly half of your plane ticket cost is actually fees imposed by Acsa?
Similar to how many oligarch yachts and jets disappeared into Israel, the new destination for the super-wealthy russians, courtesy of a government that does not vote against russia or implement sanctions. Basically we are in an exclusive club of russia, china, belarus, north korea, india and a host of stans.
So, now we assist those who bomb schools and hospitals, a sad development for South Africa!