Russia became a financial lifeline for Syria, which faced severe foreign currency shortages. These cash transfers occurred as the Syrian Civil War continued and Western sanctions crippled Syria’s economy. The Financial Times reports the funds were used by Syria for essential purchases, such as wheat from Russia, and military expenses.
Former US Assistant Secretary of State for Near Eastern Affairs, David Schenker, stated, “The regime would have to bring their money abroad to a safe haven to be able to use it to procure the fine life… for the regime and its inner circle.” This action of moving funds abroad has been a long-standing practice by the Assad regime. Eyad Hamid, a senior researcher at the Syrian Legal Development Programme, confirmed Russia’s role as a hub for the Assad regime to evade sanctions, particularly given Syria’s isolation from the global banking system due to Western sanctions.
In addition to providing military support, including aid from Wagner group mercenaries, Russia also became a repository for the regime’s funds. Some of these funds were reportedly used to purchase high-end real estate in Moscow through intermediaries, expanding the Assad family’s wealth beyond Syria. Simultaneously, Syria’s economy was devastated, and the Assad family, including First Lady Asma al-Assad, controlled key parts of the country’s economy, including activities like drug trafficking and fuel smuggling.
Financial Corporation Bank (RFK) and TsMR Bank, both Russian institutions sanctioned by the US Treasury, were identified as recipients of the Syrian cash transfers. Iran also provided financial assistance to the Assad regime through companies linked to Iran’s Revolutionary Guard Corps and Hezbollah, led by Assad’s economic advisor, Yassar Ibrahim.
This reliance on Russia deepened Syria’s dependence and fostered corruption within Assad’s network. Hamid states, “corruption under Assad was not a marginal affair or a side effect of the conflict. It was a way of government.” Russia’s continued financial support remains vital for the Assad regime amidst ongoing conflict and Western sanctions.
