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Syria\u2019s debt to Iran is estimated at $30 billion. This figure, originating from the Office of the Iranian Presidency, was leaked in August 2023. It represents the price Iran has paid since 2011 to keep Assad in power. The repayment of this massive debt is all the more unlikely given that those now in power in Syria harbor a deep and enduring aversion toward the Islamic Republic for its near-unconditional support of the former dictator.<\/p>\n
It should be noted that Iran has still not recovered the $1 trillion owed by Iraq for reparations following the bloody war Saddam Hussein launched in 1980, which lasted eight years. Yet, the two nations now enjoy good relations, with bilateral trade steadily increasing over the past decade. Nonetheless, Iran has seen none of its money, while Kuwait, for its part, has successfully recovered the $50 billion Iraq owed it for the 1990 invasion. Clearly, Iran pays the price for its lack of international support and networks, advantages from which Kuwait greatly benefits.<\/p>\n
Trade and economic relations between Iran and Syria were diverse, encompassing\u2014until Assad\u2019s downfall\u2014sectors such as energy, industrial goods, vehicles, arms, petrochemicals, construction materials, financial investments, and significant cash flows brought into Syria by Iranian pilgrims visiting sacred Shiite sites near Damascus. Over 14 years, Iran exported an average of 60,000 barrels of oil per day to Syria. At $50 per barrel, Syria owes $1 billion annually, amounting to $14 billion since 2011 in this sector alone. For example, an Iranian supertanker carrying 750,000 barrels had to turn back in the Gulf of Suez on December 8 due to attacks by what were still \u201crebels\u201d at the time.<\/p>\n
Now in power, these rebels are unlikely to be inclined to honor the country\u2019s debt. Yet, Iranian authorities were already anxious and uncertain about recovering their funds even under Assad. This is why they multiplied agreements and contracts with him across a wide range of sectors to secure at least some return on their investments. In September 2022, a major contract involving eight projects was signed between the two countries, under which Damascus would pay Tehran $18 billion. Iran was supposed to spend $1 billion and recover $18 billion over a period of 50 years. Another contract granted Iran control of the Syrian port of Tartus for 49 years, automatically renewable for another 49, extending until 2093. On November 13, 2024\u2014just one month before Assad fled\u2014the Iranian Parliament passed a law establishing the total liberalization of trade with Syria, in hopes of claiming the lion\u2019s share of the country\u2019s reconstruction.<\/p>\n
To this end, Iran not only sent military advisors to Syria but also deployed skilled personnel akin to missi dominici<\/em>, facilitating trade exchanges and monitoring these bilateral agreements. Some sources estimate that there are currently 10,000 Iranian officials in Syria, whose fate has now become uncertain. This ambiguous situation is further complicated by the fact that these substantial expenditures\u2014most of which relate to civilian projects in Syria\u2014are actually funded from Iran\u2019s military budget under the framework of \u201cadvanced security\u201d agreements between the two countries.<\/p>\n Popular discontent, which Iranian authorities have long ignored, was already evident before Assad\u2019s ouster, with many media outlets regularly expressing outrage over these funds being diverted from the country\u2019s economy, which is in dire straits. Today, an increasing number of national and local political leaders are openly questioning this policy, as Syria\u2019s $30 billion debt amounts to no less than 10% of Iran\u2019s GDP.<\/p>\n","protected":false},"excerpt":{"rendered":" Syria\u2019s debt to Iran is estimated at $30 billion. This figure, originating from the Office of the Iranian Presidency, was leaked in August 2023. It represents the price Iran has paid since 2011 to keep Assad in power. The repayment of this massive debt is all the more unlikely given that those now in…<\/p>\n","protected":false},"author":4,"featured_media":27325,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"give_campaign_id":0,"_crdt_document":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"mc4wp_mailchimp_campaign":[],"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[648942765],"tags":[],"class_list":["post-27320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-debts"],"yoast_head":"\n