Did Bashar Al Assad pay $250 mn in ‘cash’ to Russia for military support to quash Syrian rebels? Report reveals…

Bashar Al Assad, the ousted Syrian President, reportedly sent approximately $250 million in cash to Moscow between 2018 and 2019, highlighting the financial ties between his regime and Russia during the ongoing Syrian Civil War. This transfer, conducted in both US Dollars and Euros, underscores the reliance of Assad’s government on Russian support amid crippling sanctions and a dire shortage of foreign currency in Syria.

Russia was Assad's lifeline ever since the Civil War broke out in Syria in 2011.

Details of Cash Transfers Between Syria, Russia

According to a report by the Financial Times, records indicate that the Syrian Central Bank facilitated flights carrying nearly two tonnes of cash to Vnukovo Airport in Moscow.

The ‘cash’ funds were deposited at the Russian Financial Corporation Bank (RFK), a lender controlled by Rosoboronexport, the state arms export company.

The transfers occurred during a critical period when Russian military assistance was instrumental in stabilising Bashar al-Assad's regime against rebel forces in Syria.

The cash deliveries between Damascus and Moscow were particularly notable between March 2018 and September 2019, following Russian efforts to repel insurgents from Damascus.

The unusual nature of these transactions highlights how Russia became a key destination for Syria's cash flow as Western sanctions intensified.

Cash Deliveries from Damascus to Moscow

The records as seen by Financial Times, reveal that al-Assad’s regime executed multiple flights transporting significant amounts of cash to Russia.

For instance, on May 13, 2019, a plane carrying $10 million ( ₹84.85 crores) in $100 bills arrived in Moscow.

In February 2019 the Syrian Central Bank flew in around €20mn ( ₹178.19 crores) in €500 notes. In total there were 21 flights from March 2018 to September 2019 carrying a declared value of over $250mn ( ₹2,120 crores), Financial Times reported.

Russian records accessed by Financial Times reveal regular exports to Syria, including shipments of secure paper, new Syrian banknotes from the state-owned printing company Goznak, and consignments of replacement military components for Syria's Ministry of Defence.

Prior to these transactions, there had been no recorded cash transfers between Syria’s central bank and Russian banks since the onset of the civil war in 2011.

Syrian Economic Control Amidst Civil War

Despite the devastation wrought by years of civil conflict in Syria and in the West Asia, Assad and his close associates have maintained control over critical sectors of Syria’s economy.

First Lady Asma al-Assad, an ex-JP Morgan banker, has played a pivotal role in influencing international aid and leading a secretive presidential economic council.

Reports by US indicate that ousted Syrian President Assad's regime has also profited from international drug trafficking, including Captagon,  and fuel smuggling operations.

As Syrian financial institutions sought refuge in Russia, Iran also emerged as a crucial ally, establishing mechanisms to provide hard currency to Assad's beleaguered government. Key figures within Assad's inner circle have taken significant roles in companies linked to these operations.

Yassar Ibrahim, Assad’s closest economic adviser, is a shareholder in a Lebanese company called Hokoul SAL Offshore, alongside his sister Rana, who has also been sanctioned by the US.

Hokoul, according to the US Treasury, is directed by Iran’s Revolutionary Guard Corps-Quds Force and Lebanese group Hezbollah to move hundreds of millions of dollars “for the benefit of the brutal Assad regime”.