Syria's Bashar al-Assad Regime Airlifted $250 Million In Cash To Russia Amid Sanctions: Report

Ex-Syrian President Assad's regime transferred $250 million in cash to Russia between 2018-2019, underscoring its dependence on Moscow for military support amid crippling Western sanctions

Ex-Syrian President Bashar al-Assad's regime transferred approximately $250 million in cash to Russia between 2018 and 2019, records analysed by the Financial Times (FT) reveal. The cash transfers underscore Assad's dependence on Moscow for military support amidst crippling Western sanctions.

The Syrian Central Bank facilitated flights carrying over two tonnes of cash, consisting of $100 bills and €500 notes, to Moscow's Vnukovo Airport. These funds, valued at over $250 million (₹2,120 crores), were deposited into the Russian Financial Corporation Bank (RFK), a lender controlled by Rosoboronexport, the state arms export company, as per Financial Times' report.

The transactions occurred during a critical period when Russian military assistance was pivotal in stabilising Assad's regime against rebel forces. The cash deliveries were particularly notable between March 2018 and September 2019, following Russian efforts to repel insurgents from Damascus.

On May 13, 2019, for instance, a plane carrying $10 million (₹84.85 crores) in $100 bills arrived in Moscow. Similarly, in February 2019, the Syrian Central Bank flew approximately €20 million (₹178.19 crores) in €500 notes to Russia. Records indicate a total of 21 such flights during this period.

The unusual nature of these transactions shows how Russia became a key destination for Syria’s cash flow as Western sanctions intensified. The cash transfers coincided with Syria’s reliance on cash transactions to pay for wheat imports, money printing services, and defence-related expenses, given the Central Bank's limited foreign reserves.

The Financial Times also reported that regular exports to Syria included secure paper, new Syrian banknotes printed by Russia’s state-owned company Goznak, and replacement military components for Syria’s Ministry of Defence.

Notably, according to records starting in 2012, there were no cash transfers between Syria’s central bank and Russian banks before 2018. A person familiar with Syrian central bank data told the Financial Times that foreign reserves were “almost nothing” by 2018. However, due to sanctions, the bank was compelled to make payments in cash. The person mentioned that the bank purchased wheat from Russia and utilised funds for money printing services and “defense” expenses.

The person further explained that the central bank would make payments based on the available funds in its vault. “When a country is completely surrounded and sanctioned, they have only cash,” the person emphasised, as quoted by the report.

Moscow Became Syrian Regime's Lifeline Since 2011 Civil War, Associates Amassed Assets In Russia

These cash shipments underscore the growing interdependence between Assad’s regime and Russia. Moscow has been a lifeline for Syria since the civil war began in 2011, providing military aid, including airpower and support from Wagner Group mercenaries.

Eyad Hamid, a senior researcher at the Syrian Legal Development Programme, told FT, "Russia has been a haven to the Assad regime’s finances for years," serving as a hub for evading sanctions imposed after Assad’s brutal suppression of protests in 2011. London-based Syrian analyst Malik al-Abdeh suggested that the transfers could represent payments for Russian military intervention, further entrenching Syria’s dependence on its ally.

The report also revealed that Assad’s relatives and associates were amassing assets in Russia. Members of Assad’s extended family acquired at least 20 luxury apartments in Moscow from 2013 through complex arrangements, while his cousin Iyad Makhlouf and twin brother Ihab established a property company, Zevelis City, in 2022. These efforts were facilitated by figures such as Syrian-Russian banker Mudalal Khoury, who was accused by the US Treasury of moving substantial funds for the regime.

David Schenker, former US Assistant Secretary of State for Near Eastern Affairs, remarked, "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." He told FT that the Assad regime regularly sent money out of Syria for “a combination of securing their ill-gotten gains and Syria’s patrimony abroad”.

Assad Faced Allegations Of Involvement In Illicit Activities & Corruption, Sought Iran's Aid For Hard Currency

Opposition groups and Western governments have accused the Assad regime of looting Syria’s wealth and engaging in illicit activities, including drug trafficking and fuel smuggling, to finance its war effort. As Syrian financial institutions sought refuge in Russia, Iran also emerged as a pivotal ally, establishing mechanisms to provide hard currency to Assad’s besieged government.

A company linked to Iran’s Revolutionary Guard Corps and Hezbollah, Hokoul SAL Offshore, reportedly funnelled substantial amounts of hard currency to Assad’s regime. Assad’s adviser, Yassar Ibrahim, held shares in the company. The US Treasury stated that Hokoul is directed by Iran’s Revolutionary Guard Corps-Quds Force and Hezbollah to facilitate the transfer of hundreds of millions of dollars “for the benefit of the brutal Assad regime.”

Hamid noted, "Corruption under Assad was not a marginal affair or a side effect of the conflict. It was a way of government."

Despite the constraints imposed by sanctions, Assad and his close associates maintained control over significant portions of Syria’s war-ravaged economy. First Lady Asma al-Assad wielded considerable influence over international aid and headed a presidential economic council, further cementing the regime’s grip on Syria’s economic resources.