Two Gulf states pledge to settle some of Syria's foreign debt
The Gulf nations announced their commitment to cover the roughly $15 million in outstanding debt following discussions on postwar Syria on the sidelines of last week's World Bank and International Monetary Fund meetings in Washington.
The move signals a Gulf-led initiative to support Syria's economic recovery under the newly-installed government. The country saw a change of power late last year, when the jihadist group Hayat Tahrir-al-Sham (HTS) launched a surprise offensive, taking Damascus and ousting former President Bashar Assad. HTS leader Ahmed al-Sharaa became president and formed a new transitional government in March.
'This commitment will pave the way for the World Bank Group to resume support and operations in Syria after a suspension of more than 14 years,' Saudi Arabia and Qatar said in a joint statement on Sunday.
The World Bank suspended its operations in Syria when the country's civil war began in 2011. Settling the country's arrears will allow the country to once again access the bank's financial assistance and technical expertise at a time when its economy remains devastated, with GDP slashed by nearly 50% since 2010 and a reconstruction bill estimated at $400 billion.
Both countries have played a critical role in the diplomatic outreach to Syria's new interim government. Saudi Arabia and its Gulf neighbors have increased humanitarian aid to Damascus recent months, but the debt settlement plan will mark the first instance of Saudi financial support being directed toward the country.
Syria's central bank governor and finance minister attended the World Bank and IMF meetings in Washington this week, marking their first participation in more than two decades.
US sanctions, which have been in place since 2004 and target supporters of Assad, remain a major obstacle to Syria securing the aid it needs for reconstruction.
Last month, the US presented Syria with a list of conditions for partial sanctions relief, according to Reuters. Among the demands, were the destruction of any remaining chemical weapons stockpiles and increased cooperation on countering terrorism.
Russia has maintained ties with Syria's new leadership despite granting Assad asylum after his ouster.
Russian President Vladimir Putin indicated that his country is committed to helping improve Syria's social and economic conditions, including through humanitarian aid. The new government in Damascus has also signaled its intention to preserve 'strategic' relations with Moscow.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Russia Today
9 hours ago
- Russia Today
Indian diaspora remittances reach record high
The Indian diaspora sent a record $135.46 billion in remittances to the country in the 2024-25 fiscal year, the Economic Times newspaper reported, citing central bank data. Marking a 14% rise from the previous year, remittances, reflected as 'private transfers', accounted for over a tenth of gross current account inflows of $1 trillion, according to the report. 'India's remittance receipts have generally remained higher than India's gross inward foreign direct investment flows, thus establishing their importance as a stable source of external financing,' the newspaper cited a report by the staff of the Reserve Bank of India as saying. In the 2024-25 fiscal year, the largest source of remittances to the South Asian nation was the US, which accounted for 27.7% of the total, according to the Indian Express newspaper. Other major sources included the UAE (19.2%), UK (10.8%), and Saudi Arabia (6.7%). India was the top recipient country for remittances in the 2024 calendar year, according to the World Bank. The bank estimated the total value of remittances sent to the country at $129 billion. The South Asian nation was followed by Mexico ($68 billion), China ($48 billion), the Philippines ($40 billion), and Pakistan ($33 billion). 'The strong growth in remittances has persisted despite a weakness in crude oil prices,' Gaura Sengupta, chief economist at IDFC First Bank told the Economic Times. 'This is a result of a rising share of the skilled labor force migrating to developed markets such as the US, UK and Singapore.' However, potential economic slowdowns in advanced economies as well as new policies in countries such as the US could pose a threat to remittances to the South Asian nation and other countries throughout the Global South. On Tuesday, the US Senate passed President Donald Trump's 'One Big Beautiful Bill Act,' which introduces a new tax on overseas money transfers by non-citizens. Under this legislation, all remittances made through cash, money orders, or cashier's cheques face a 1% remittance tax.
Russia Today
4 days ago
- Russia Today
Trump orders review of Syrian leader's terrorist designation
President Donald Trump has signed an executive order dismantling much of the decades-old sanctions program imposed on Syria and has ordered a review of the terrorist designation of Ahmed al-Sharaa, who led a coalition of Islamist forces that toppled the previous government of Bashar al-Assad. Trump signed the order on Monday, easing broad financial restrictions while maintaining targeted sanctions against Assad and his former government, which was deposed late last year by militants led by the Hayat Tahrir al-Sham (HTS). US sanctions against designated terrorist groups will also remain in place. However, Trump's order directs Secretary of State Marco Rubio to review HTS's designation as a 'Foreign Terrorist Organization,' as well as al-Sharaa's label as a 'Specially Designated Global Terrorist.' Washington will also revisit Syria's status as a 'State Sponsor of Terrorism,' a designation first imposed in 1979. The decision follows Trump's May meeting with al-Sharaa in Riyadh, where discussions focused on Syria's reconstruction and potential normalization of relations with Israel. At the time, Trump pledged to give the new leadership in Damascus 'a chance at greatness.' To oversee Washington's growing ties with Damascus, he appointed Thomas Barrack, his ambassador to Turkey and longtime confidant, as US Special Envoy for Syria. Speaking to reporters on Monday, Barrack acknowledged the 'controversy here, of somebody who had been al-Nusrah and had been considered a bad guy who all of a sudden becomes the leader' – drawing a historical parallel between Syria's political shift and the early years of American independence. 'If you remember, we had a revolutionary war that lasted 14 months. And we had brutality… And from 1776, when we declared independence, it was 12 years until we got a president. And who was the president? The president was a general… It was George Washington,' Barrack told reporters during a State Department briefing call. So if you take Syria… you have a general who transitioned from wartime into a position of being the leader of a reframed new country that needs everything – and that's basically what's happening. Rubio previously warned that Syria had become 'a playground for jihadist groups, including ISIS and others,' acknowledging that the new Syrian leadership 'didn't pass their background check with the FBI,' but insisted the US must support them to prevent wider regional instability. 'The US is taking further actions to support a Syria that is stable, unified, and at peace with itself and its neighbors,' Rubio wrote in a post on X on Monday.
Russia Today
18-06-2025
- Russia Today
Say goodbye to cheap oil – and thank Israel and Iran while you're at it
The sudden outbreak of the Israel–Iran war has thrown global oil markets into uncertainty by destabilizing the world's two most critical shipping chokepoints. Tehran's strategic messaging, including heightened military readiness around the Strait of Hormuz, has already impacted global trading patterns. In recent days, maritime advisories have reported a surge of electronic jamming in the Gulf, scrambling merchant ship tracking systems. Two oil tankers even collided near Hormuz on June 17, causing a fire and the evacuation of a crew, but no oil spill. The incidents highlight the razor-thin margin for error in a waterway that routinely carries 18–20 million barrels of oil per day, nearly a fifth of global trade. While Iran's actions may be aimed at deterrence, the regional risk perception is very real. Historical precedent shows that even the suggestion of closing the Strait of Hormuz can send global oil prices soaring. Shipping routes remain on edge amid ongoing airstrikes between Israel and Iran. Merchant vessels have reported navigational interference near Bandar Abbas, a strategic Iranian port. Greek authorities, whose shipping companies operate much of the world's tanker fleet, have instructed vessels to log all passages through Hormuz, underscoring the seriousness of current tensions. A misstep, be it a stray projectile or a retaliatory move from regional actors like the Houthis, could temporarily block this vital artery, triggering immediate price surges and logistical disruptions. Even without a full shutdown, economic consequences are mounting. War-risk insurance premiums for Gulf-bound tankers have surged. In mid-June, Very Large Crude Carrier (VLCC) freight rates from the Arabian Gulf to Asia jumped over 20%, with further hikes likely if tensions escalate. Analysts have cautioned that any Iranian strike on Strait infrastructure or an uptick in maritime confrontation would cause premiums to spike further. One London broker estimated that an extra $3–8 per barrel may result purely from risk recalibration. These hidden costs are inevitably passed to consumers and energy-importing nations already grappling with inflation. Further south, the Red Sea and the Suez Canal remain volatile. Since late 2023, the Yemen-based Houthis have targeted commercial vessels in the Bab al-Mandab strait, complicating East-West maritime traffic. Most container lines and some oil tankers are now avoiding the Suez route, detouring via the Cape of Good Hope. This diversion adds 10–14 days to voyage times and congests African ports, straining supply chains and inflating shipping costs. Even after a temporary ceasefire brokered earlier this year, Red Sea transits remain subdued. The Suez Canal Authority reported revenues fell dramatically, from $2.4 billion to just $880 million in the span of a year. Egypt is now offering up to 15% discounts to attract shipping back, but many carriers remain wary of the enduring threat. The insurance sector mirrors this caution. War-risk premiums for vessels transiting the Red Sea have remained high despite lulls in attacks. One report from June 17 noted that for ships destined for Israel, war-risk costs ranged from 0.7% to 1.0% of vessel value. For a $100 million tanker, that's nearly $1 million in added cost for a week-long voyage. These elevated costs reinforce the broader economic implications of maritime insecurity. The Israel–Iran conflict has exposed pre-existing vulnerabilities and rendered them urgent. The world's energy corridors are increasingly fragile. Gulf states such as Saudi Arabia, the UAE, and Iraq have made diplomatic and operational efforts to reassure markets. Riyadh has offered extra oil cargoes to offset volatility, while Tehran, despite elevated rhetoric, has not officially disrupted its exports. Still, the potential for broader escalation looms, making disruption more plausible. For policymakers and energy strategists, the key takeaway is that modern energy security must go beyond domestic stockpiles and price stabilization measures. Greater international coordination is essential. Regional naval operations focused on secure navigation, better real-time maritime intelligence, and deconfliction mechanisms must be prioritized. Additionally, longer-term infrastructure investments, like undersea pipelines, overland transit corridors, and expanded port capacity in lower-risk regions, should form a core part of contingency planning. Diplomacy also plays a critical role. Confidence-building measures between key maritime states and crisis communication channels can help prevent unintended escalation. The goal should not be confrontation, but a shared commitment to keeping global trade arteries open. The current war is a reminder that energy routes are the lifelines of the global economy. If threats to these straits continue unchecked, the world will not only face higher prices but the prospect of systemic energy instability. In this environment, securing freedom of navigation is not a matter of ideology, but a practical, shared necessity for global economic resilience.
