Tartus Port returns to Syrian control after cancelled deal with Russia

Syria's transitional government has cancelled a long-standing investment agreement with Russian company Stroytransgaz to manage the Mediterranean port of Tartus.

Riyad Judi, director of Tartus customs, confirmed the decision to Al-Watan, per Caliber.Az.

"All revenues from managing the port will now go for the benefit of the Syrian state. Workers will return to local management."

Judi highlighted that the port's equipment had fallen into disrepair under the agreement, noting, "The Syrian side will also take care of the rehabilitation of outdated equipment that the company used without the upgrades stipulated in the agreement."

The 49-year contract, signed in 2019, had promised a $500 million investment from Russia over four years to expand the port. However, the port is currently "practically paralyzed" due to high duties and logistics costs, according to Judi. "Customs duties have been reduced by 60 per cent for some goods to address the crisis," he added.

Following the December 2024 ousting of President Bashar al-Assad, Syria's transitional government, led by Mohammed al-Bashir, is steering the country toward reform. Al-Bashir, formerly head of the opposition "Save Syria Government," is overseeing Syria's transition until elections in March 2025. His administration aims to rebuild trust and stabilize the economy after years of turmoil.

The fallout from Assad's resignation has strained Syrian-Russian trade relations. Russian wheat exports to Syria have been suspended, with Dmitry Trifonov, general director of STG Engineering, citing a lack of clear counterparts in the new government. "We are ready to resume exports once relations with the new Syrian authorities are established," he said.

Meanwhile, Al Araby reported this week that Syrian retailers had banned imports from Russia, Iran, and Israel, signalling a shift in trade policies under the transitional government.

Russian President Vladimir Putin reiterated Moscow's commitment to Syria during a press conference with Iranian President Massoud Pezeshkian on January 17. "We will continue to support Syria in stabilizing the situation, but it is up to Syrians themselves to determine their future," Putin said.

The Russian Foreign Ministry previously confirmed Assad's resignation, noting he had agreed to a peaceful transfer of power. 

By Tamilla Hasanova