{"id":25644,"date":"2023-10-14T03:30:00","date_gmt":"2023-10-13T23:30:00","guid":{"rendered":"https:\/\/www.syndicationbureau.com\/?p=25644"},"modified":"2023-10-12T20:24:29","modified_gmt":"2023-10-12T16:24:29","slug":"iran-is-ready-to-collect-on-its-debts-in-syria","status":"publish","type":"post","link":"https:\/\/www.syndicationbureau.com\/iran-is-ready-to-collect-on-its-debts-in-syria\/","title":{"rendered":"Iran Is Ready to Collect on Its Debts in Syria"},"content":{"rendered":"\n
After years of dormancy, trade between Syria and Iran is\u00a0stirring to life<\/a>. Since May, the countries have made progress on deals to remove joint customs tariffs, revive Iran\u2019s automotive plants in Syria, create a joint bank, and even build an insurance company.<\/p>\n\n\n\n It wasn\u2019t long ago that talk of improved economic ties between Tehran and Damascus was just that \u2013 talk. Now, however, cooperation has a new deadline: the end of Iranian patience.<\/p>\n\n\n\n Iran has been a steadfast supporter of President Bashar Al Assad<\/a> since the start of Syria\u2019s civil war in 2011, and Tehran has provided Damascus with financial aid, militias, and weapons throughout the 12-year-long conflict. Confidential documents<\/a>, allegedly leaked by Iran’s Presidential Institution, reveal the extent of this assistance: an estimated $50 billion in military and non-military backing. <\/p>\n\n\n\n But none of this support was free<\/a>. On the contrary, Iran viewed it as an investment. Aware that Syria\u2019s financial woes<\/a> would make cash repayment unlikely, Iran has sought to recover its debts through project-based settlements. <\/p>\n\n\n\n Yet few of these projects have materialized<\/a>. Long, drawn out negotiations kept many projects in political purgatory. Making matters worse, the Syrian regime granted the lion\u2019s share of new business opportunities to Russia, turning its back on lenders from Tehran.<\/p>\n\n\n\n Frustrated, in 2022, Iran began in hopes of converting its substantial support into tangible economic benefits. By employing strategic leverage<\/a>, such as withholding oil shipments, Iran managed to secure economic concessions during President Ebrahim Raisi’s visit to Damascus in May<\/a>.<\/p>\n\n\n\n Raisi emphasized expeditious implementation<\/a> of deals old and new, including agreements on energy, agriculture, transportation, and free trade. Several projects controlled by proxy companies linked to Iran\u2019s Islamic Revolutionary Guard Corps (IRGC) \u2013 including a telecoms deal \u2013 were also advanced.<\/p>\n\n\n\n In contrast to previous deals, the latest round of announcements \u2013 facilitated through intense shuttle negotiations \u2013 demonstrates Tehran\u2019s new ability to shape Syria’s trade and import policies. The recent revival<\/a> of Iranian automobile manufacturing in Syria, halted during the war, is one example. <\/p>\n\n\n\n A new zero-trade tariff agreement<\/a> between Iran and Syria, unveiled in July, is another. That deal paves the way for businesses, including car assembly plants, to engage in cross-border trade without tariffs.<\/p>\n\n\n\n Iran’s push to revive plans for a joint Iran-Syria bank is particularly noteworthy. Initially agreed upon in 2019<\/a>, the bank was reportedly registered with the Central Bank of Syria on August 17 and is expected to begin operations soon. (Beyond that, little is known about the financial institution, and the majority shareholder, with 49 percent of stock, is a nameless offshore company<\/a> registered in Lebanon).<\/p>\n\n\n\n Iran is also moving forward with the establishment of an insurance company<\/a>, a partnership between Iran’s Alborz Insurance, one of the country\u2019s oldest and largest insurers, and Syria\u2019s Al Aqeelah Insurance Company. Like the bank deal, the insurance plan aims to bolster private Iranian investments in Syria by mitigating the risks associated with operating in the country. This strategy will enable Iran to diversify its investments beyond the Iranian government and IRGC networks.<\/p>\n\n\n\n Finally, Iran has used its influence to accelerate the launch of its mobile telecom operator, Wafa Telecom. Although the initial agreement was signed in 2017<\/a>, little progress had been made until recently. Wafa has reportedly delivered 500,000 SIM cards<\/a> and 60 mobile telecom stations to Syria, suggesting that launch is imminent. Interestingly, Wafa\u2019s majority shareholder<\/a> is owned by the IRGC through shell companies, including a Malaysian entity called Tioman Golden Treasure.<\/p>\n\n\n\n