Iran is pushing Syria to act on strategic investments from agreements between them, aiming to repay Syria’s $50 billion debt.
Tehran is speeding up the process, which Damascus had hesitated on, seeing itself as crucial for Syria’s survival amid economic collapse.
Sources in Damascus confirm Iran’s long-standing pressure to implement these agreements, especially after President Ebrahim Raisi’s visit last May and the signing of a cooperation memorandum.
The focus is on getting these agreements into action.
Sources told Asharq Al-Awsat that Syria sees these agreements as unfair, giving Iran benefits while harming Syrian interests.
Syria feels deprived of financial support to bolster its economy because the main goal seems to be Iran reclaiming its debt.
As a result, Damascus hesitates to implement the agreements, hoping to use its economy as leverage to attract investment from Arab and Western nations.
Last August, a classified government document from the Iranian presidency was leaked to the media, revealing Iran spent $50 billion on the Syrian war over 10 years.
Iran considers this sum as “debts” it intends to reclaim through investments, including the transfer of phosphate, oil, and other resources to the Iranian government.
Iran plans to invest $947 million in eight projects to recoup about $18 billion over 50 years.
An economist in Damascus, who requested anonymity, explained that due to war damage, production in government-held areas is minimal, and Syria heavily relies on imports, especially with Russia occupied in Ukraine.
As a result, Syria is dependent on Iran, which controls the supply of oil, gas, and food, becoming Syria’s main lifeline.
As signs of progress in Damascus-Tehran agreements emerge, Syria’s Minister of Communications and Technology, Iyad al-Khatib, announced that the trial call for the new cellular operator, “Wafa Telecom,” will happen in September, followed by its commercial launch.
Workers installing communication towers confirmed that many are set up to serve “Wafa Telecom,” reportedly backed by seven local Syrian companies. However, investigations found ties to the Iranian Revolutionary Guards.
“Most areas in Damascus now have these towers,” an installation worker, speaking under conditions of anonymity, told Asharq Al-Awsat.
Another source in Damascus mentioned speeding up the implementation of various agreements, including establishing a joint bank and enhancing trade deals.
To speed up these agreements, Iran appointed Hossein Akbari as its special ambassador to Damascus in April 2023. He’s been meeting with Syrian officials and engaging with state institutions and trade chambers, focusing on the economic aspects.
Local media reported that he met with three Syrian ministers separately on March 21. They discussed starting various joint industrial projects between the two countries.
Among the planned Iranian-Syrian projects is an agreement regarding a Syrian phosphate mine with a capacity of 1.05 billion tons. Iran is set to receive part of its claims from this mine over 50 years, investing $125 million within 3 years.
According to a leaked Iranian document, this contract has been active since 2018, with 2.05 million tons of phosphate extracted from the mine until February 2022.
Another contract involves the Homs “Field 21” oil field in central Syria, holding reserves of 100 million barrels. The 30-year contract execution began in 2020, with Iran investing $300 million to complete it within 5 years, aiming to settle Syria’s $3.4 billion debt from this field.
There’s also a contract for “Field 12” in Deir Ezzor, eastern Syria, spanning 30 years. With a $300 million investment over 5 years, Iran expects to earn $3 billion from it.
Additionally, Iran will establish and operate a mobile phone station in Syria, investing $222 million over three years, expecting an income of $1.5 billion. They’ll also receive a portion of the income from the Latakia port, with payments spread over 20 years.
Furthermore, there are contracts for investing in 5,000 hectares of agricultural land in Syria, covering $25 million of Syria’s debt to Iran over 25 years.
Moreover, a contract will establish a factory for producing powdered infant milk near the “Zahid” cattle facility in Tartus. Through this, $7 million of Syria’s debt to Iran is expected to be repaid over 25 years.
