The Syrian government cancel the investment contract signed during former regime with Russian company
Since the fall of the Assad regime, the Syrian transitional government has begun a comprehensive review of the economic contracts and agreements concluded by the former regime with its allies, particularly Russia and Iran.
These contracts, signed under unstable political and military circumstances, represented economic concessions from the Assad regime in exchange for political and military support that enabled it to remain in power for years, at the expense of the interests of the Syrian people.
As part of this review, the Syrian government recently announced the cancellation of the Tartous Port investment and financing contract, signed in 2019 with the Russian company Stroytransgaz.
The decision was made in collaboration with a team of Syrian lawyers and a European law firm, based on the principles of international treaty law and the 1969 Vienna Convention.
According to sources, the cancellation decision was based on three main reasons:
A fundamental breach of the terms of the agreement: The Russian company failed to fulfill its commitments related to investing half a billion dollars in modernizing the infrastructure and operating the port.
This constitutes a clear violation, giving Damascus the right to terminate the contract under Article 60 of the Vienna Convention.
Imbalance in revenues: The contract stipulated that the Russian company would receive 65% of the profits, compared to only 35% for Syria, while granting Moscow near-total control over the port’s board of directors.
This was considered an unfair deal devoid of economic justice, as failure in actual implementation: Despite years since the agreement was signed, no real steps have been taken to develop the port, and it continues to suffer from dilapidated infrastructure, dilapidated mechanisms, and bureaucracy that hinders performance, reflecting a lack of seriousness on the Russian side.
This cancellation comes at a time when Moscow is seeking to maintain its influence in Syria, particularly through its military bases in Tartus and Hmeimim.
However, political transformations in Damascus appear to be pushing toward openness to the West, particularly the United States and the European Union, after decades of dependence on the Russian camp.
On June 18, Russian Deputy Foreign Minister Sergei Ryabkov stated that his country still hopes to preserve its strategic interests in Syria, noting the continuation of dialogue with Damascus regarding military bases and humanitarian issues.
In contrast, the United States believes that the continued Russian presence in Syria is inconsistent with the current course of political change in the country.
US Senator Jim Risch, Chairman of the Senate Foreign Relations Committee, stated during a speech at the Hudson Institute Research Center that Russia’s presence in Syria represents a long-term threat that cannot be ignored.
He added that “Moscow’s access to the Mediterranean Sea poses a direct threat to the United States and NATO, in addition to its continued support for the Assad regime, with the participation of Iran, which has made it a major partner in the crimes committed against Syrian civilians”.
Risch emphasized that maintaining Russia’s presence in Syria could once again open the door to the expansion of Iranian influence in the region, warning that ignoring this issue could complicate stability efforts in the Middle East.
