On Thursday, the Syrian government adopted measures to shield its war-hit economy from the repercussions of Russia's invasion of Ukraine, state media said. The Syrian government relies on Moscow for the bulk of its wheat imports. Moscow has lent Damascus very limited amounts of financial aid, but it has supplied Syria with wheat as a form of assistance. The three companies were unheard of prior to these contracts. "A company called Capital was granted a contract for an offshore block, while Mercury and Velada signed three contracts between them for onshore blocks," the publication said this month. The deal authorised the Russian company to demine, rehabilitate, explore and develop the al-Thawra oil fields without paying taxes to the Syrian government, it said.īetween September 2019 and January 2020, Syria awarded four new oil exploration contracts to several Russian companies, the Syria Report added. In March 2020, the Syrian government signed a $22 million production-sharing agreement with the General Petroleum Organisation and Stroytransgaz, according to the Syria Report, an online economic publication. They include one for Russian firm Stroytransgaz to take over Syria's largest port of Tartus for 49 years.Ī handout picture from the Syrian Arab News shows a Russian soldier standing by T-90 battle tanks during the Victory Day military parade, in May 2021, at the Russian military Hmeimim base, southeast of the Syrian port of Latakia - SANA/AFPĪnother deal awarded the same company a 50-year concession to extract phosphate in the central region of Palmyra. In recent years, Damascus and Moscow have signed several deals in energy, construction and agriculture. Six years on, the Kremlin benefits from an outsized role in Syria's economy owing to its political and military ties with the Assad regime. Officials and observers point out the presence of a "shadow army" of Russian mercenaries in Syria, including those working for private military company Wagner, which also deployed fighters in Ukraine in past months. Most of Russia's latest weapon systems have been tested in Syria, Russian Defence Minister Sergei Shoigu said in August, according to Russia's TASS news agency. Russian warships and submarines have also played a prominent role backing Moscow's bombing campaign by firing missiles at Islamic State group targets from the Mediterranean. Russia rules the skies across most of the war-torn country and the role of its air force there has been celebrated at home.īomber planes such as the Tu-22 and Tu-160 have flown from Russia to hit targets in Syria. They are protected by S-300 and S-400 air missile defence systems. In February Syrian President Bashar al-Assad held talks with Russia's Defence Minister Sergei Shoigu who also inspected Moscow's Hmeimin air base in western Syria - SANA/AFP
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