The Syrian revolution has ushered in a seismic political shift, unseating President Bashar al-Assad and placing the once-oppressed rebels at the helm of power. However, as Syria grapples with its future, startling revelations have surfaced about Assad’s financial dealings with Russia, further complicating the Kremlin’s position in the region.
According to an investigation by the Financial Times, Assad’s regime secretly airlifted around $250 million in cash to Moscow over a two-year period. These transactions, amounting to nearly two tonnes of $100 bills, highlight the extraordinary measures Assad took to sustain his regime amid crippling international sanctions. The funds, delivered to Moscow’s Vnukovo airport, were reportedly used to purchase essential goods such as wheat, pay for money-printing services, and cover “defense” expenses, all while securing the Assad family’s wealth abroad.
A Desperate Regime’s Financial Gambit
Faced with severe sanctions that had drained Syria’s foreign reserves to almost nothing by 2018, the Assad government relied heavily on cash to conduct international transactions. With no access to conventional financial systems, Syria’s central bank resorted to what was available in its vaults. This dependency on cash underscores the regime’s isolation and its reliance on Russia for survival.
Further compounding the scandal, Assad’s family has been accused of using these funds to acquire luxury properties in Moscow, raising concerns about the looting of Syria’s national wealth. David Schenker, a former U.S. Assistant Secretary of State for Near Eastern Affairs, described these cash transfers as emblematic of Assad’s longstanding practice of enriching himself and his inner circle at Syria’s expense.
Russia’s Role and the Cost of Support
Russia’s deepening ties with Assad’s regime over the years were not merely military but also economic. Moscow played a pivotal role in sustaining Assad through military support, including Wagner Group mercenaries, and leveraging Syria’s phosphate resources. Russian state-owned entities, such as the printing company Goznak, provided crucial services, including the production of Syrian banknotes.
These revelations, however, place the Kremlin in a precarious position. With Assad ousted and the rebels now in control, Russia faces the challenge of renegotiating its presence in Syria while distancing itself from the tarnished legacy of the former regime. Further complicating the matters is Russia harbouring the runaway president in its country.
Despite the fall of Assad, Russia remains focused on securing its strategic military foothold in Syria. The Tartus naval facility and Hmeimim airbase are vital for Moscow’s power projection in the Mediterranean and the broader Middle East. In the wake of the regime change, Russian officials have reportedly initiated contact with the victorious rebels, obtaining preliminary security guarantees for these bases. This pragmatic approach reflects Moscow’s willingness to adapt to the new realities in Damascus.
The Kremlin’s overtures to the new Syrian government highlight its broader strategy of ensuring influence in the region, even amid significant setbacks. While losing Assad is undoubtedly a blow to Russian ambitions, it does not signify the collapse of its Middle Eastern policy. Russia’s diplomatic flexibility, honed through years of engaging with a diverse range of actors—from the Taliban to the Houthis—positions it to potentially reach a new accommodation with Syria’s leadership.
The Path Ahead
For Russia, the stakes in Syria extend beyond military bases. The overthrow of Assad threatens to undermine its broader strategy in the Middle East, yet Moscow retains key alliances with Turkey and Iran, along with growing ties to non-state actors. The Kremlin’s ability to recalibrate its approach in Syria will be critical in determining whether it can maintain a foothold in the region.
As the new Syrian government consolidates power, Russia’s diplomatic overtures may pave the way for a mutually beneficial arrangement. However, this will require Moscow to address lingering grievances from its decade-long support of Assad’s brutal war against the rebels now in charge.
Manbilas Singh is a talented writer and journalist who focuses on the finer details in every story and values integrity above everything. A self-proclaimed sleuth, he strives to expose the fine print behind seemingly mundane activities and aims to uncover the truth that is hidden from the general public. In his time away from work, he is a music aficionado and a nerd who revels in video & board games, books and Formula 1.
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