4 Pieces of Advice from Russia to its ‘Difficult Ally’ Syria

Russia’s Deputy Prime Minister Yuri Borisov, left, Foreign Minister Sergei Lavrov, right, and Syrian president Bashar Assad, center, during their meeting in Damascus on September 7. (AFP)
Russia’s Deputy Prime Minister Yuri Borisov, left, Foreign Minister Sergei Lavrov, right, and Syrian president Bashar Assad, center, during their meeting in Damascus on September 7. (AFP)
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4 Pieces of Advice from Russia to its ‘Difficult Ally’ Syria

Russia’s Deputy Prime Minister Yuri Borisov, left, Foreign Minister Sergei Lavrov, right, and Syrian president Bashar Assad, center, during their meeting in Damascus on September 7. (AFP)
Russia’s Deputy Prime Minister Yuri Borisov, left, Foreign Minister Sergei Lavrov, right, and Syrian president Bashar Assad, center, during their meeting in Damascus on September 7. (AFP)

Weeks ago, an American official remarked that Russian President Vladimir Putin needed to ask himself, that five years since his direct military intervention in Syria, does he want the Syria of 2025 to be the same as Syria of 2020?

There is no doubt that the Russian delegation’s visit to Syria has this question in mind. The delegation carried with it economic promises and diplomatic advice to its “difficult ally” with the hopes of receiving different answers than what some Syrian officials desire.

Russian Foreign Minister Sergei Lavrov and intelligence officials’ visit to Syria in early 2012 kicked off the phase of protecting the “allies” in Damascus through diplomatic and economic means. The intervention in late September 2015 paved the way for military intervention to “save the regime” and Damascus. So, yesterday’s “significant visit” is the beginning of the shift from military action towards politics, economy and diplomacy in the heart of Damascus, ultimately paving the way for different solutions in Syria.

Before departing Syria, the Russian delegation leaves behind four pieces of advice to its “difficult ally”:

‘American sword’
The United States has now entered a complicated electoral phase ahead of November’s presidential elections. At the moment, there are no serious indications that American forces will withdraw from northeastern Syria, even if Joe Biden were to win the polls.

From Moscow’s perspective, the upcoming weeks will witness the announcement of new American sanctions as part of the Caesar Act. The last batch had targeted president Bashar Assad, his wife and their son. It also targeted his senior aides and businessmen. The new sanctions will include more businessmen, lawmakers and military officials. The Caesar Act enjoys bipartisan support in the US, meaning they are here to stay for the foreseeable future. Confronting them, therefore, demands coordination between Moscow and Damascus. To that end, it appears that the Russian delegation brought with it attractive financial and economic promises to Damascus in the shape of loans or grants worth billions of dollars that will give the regime some sanctions and economic relief in the near future.

Iranian ‘crescent’
In return for these pledges, Moscow “advised” Damascus of the need to “help us so we can help you” in breaking its diplomatic-political isolation and kicking off the reconstruction process. How? By taking some tangible steps in reorganizing its internal affairs, implementing constitutional reform according to United Nations Security Council resolution 2254 and reassessing its ties with Iran. Damascus is demanded to “decrease its role in the ‘Iranian crescent’” that stretches from Tehran, passing through Baghdad and Damascus, and ending in Beirut. The “crescent” is coming under frequent Israeli strikes with American blessing and Russian silence, reflecting the implementation of the Russian-American agreement that calls for keeping Iran away from southern Syria.

All of this will pave the way for Arab and European countries to “normalize” relations with Syria and help in its reconstruction. In return, Damascus must accept the understandings reached between Moscow and Washington over the regions east of the Euphrates River. It must also accept the understandings reached between Moscow and Ankara over northwestern Syria. In other words, Syria must yield to the strategic understandings reached between Russia and Turkey that go beyond the frontlines in northwestern Syria. Moscow had, after all, received days ahead of Lavrov’s Damascus trip a Turkish delegation to discuss the latest developments in the deal struck with Russia in March.

Decentralization
Moscow recently hosted the signing of an agreement between head of the Syrian Democratic Council, the political wing of the US-backed Syrian Democratic Forces (SDF), Elham Ahmed, and head of the Russia-backed People's Will Party, Qadri Jamil. Lavrov met with Ahmed and Qadri after the agreement was signed.

The deal stipulated that the “new Syria will enjoy a democratic constitution that achieves a modern relationship between decentralization and centralization in main (foreign, defense and economic) affairs.” It also underscored a “fair democratic solution to the Kurdish issue”. Moreover, it stressed that the “Syrian army is the sole national institution with the right to carry arms and that it is barred from meddling in politics.” The SDF must be incorporated in the army, it added.

Lavrov informed Ahmed and Jamil of his complete support of the agreement, saying he will relay its details to officials in Damascus.

New Syria
The “new Syria” addressed in the agreement is one that Russia is keen to achieve through resolution 2254 and the Constitutional Committee. It is clear, however, that Damascus is not on board to seriously join this venture. During its latest meeting two weeks ago, the government delegation at the committee may have changed its approach, but its goals remain the same. The delegation refused to be referred to as the “government delegation” or “government-backed delegation” Rather, it reneged on a previous agreement, reached with the opposition representatives at the committee, on “procedural regulations”, saying it is an “independent entity”.

Such behavior is only aimed at buying time until after the presidential elections set for mid-2021, because Damascus wants the polls to be held according to the current constitution. It is, therefore, hoping for talks on the constitution to be postponed until after the elections. It is also insisting on holding a referendum on the results of the Constitutional Committee meetings.

UN envoy to Syria, Geir Pedersen traveled to Moscow to brief Lavrov and Defense Minister Sergei Shoigu on the third round of committee talks, which were attended by a Russian representative, who saw for himself the government delegation’s behavior. Lavrov pledged to address the issue with the “difficult ally”. It is believed that his “advice” would be for Damascus to alter its behavior at the Constitutional Committee meetings and speed up its efforts to reach a breakthrough ahead of the presidential elections.

The coming days and weeks will, therefore, act as a test to see just how much Damascus heeded this “advice” and whether it will prove wrong remarks by a former Russian diplomat, who noted: “Damascus takes everything from us, but advice.”



Cash Shortage Squeezes Gaza Residents

Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)
Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)
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Cash Shortage Squeezes Gaza Residents

Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)
Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)

Even when food is available, many in Gaza cannot afford to buy it, as the enclave suffers from a severe cash shortage. Israel has blocked the entry of new currency into the territory since October 7, 2023, leaving residents at the mercy of money changers who have hiked exchange rates on remittances to exorbitant levels.

Palestinians in Gaza primarily rely on the Israeli shekel for daily transactions, which used to enter the strip through banks operating under the Palestinian Monetary Authority, supplied by the Bank of Israel.

Banking operations in Gaza have ground to a halt since the start of the war, and no fresh banknotes have entered the enclave, worsening an already dire humanitarian situation. Residents say they have been left at the mercy of traders who exploit the cash shortage to impose arbitrary rules on currency use.

'The Traders’ Game'

Dubbed “the traders’ game” by many in Gaza, the practice began with merchants refusing to accept worn-out banknotes and certain coins, such as the 10-shekel piece (worth about $3), which have all but vanished from local markets. Some vendors now reject older versions of bills - like the brown-hued 100-shekel note (around $28) - insisting instead on the newer yellow ones. The same rules apply to various denominations.

Speaking to Asharq Al-Awsat, Hani Jahjouh, a resident of al-Shati Camp west of Gaza City, said vendors selling vegetables and essential goods - when available - often refuse worn banknotes or specific coins, claiming they are counterfeit or easily faked.

“This just adds to the burden of people already crushed by impossible living conditions,” said Jahjouh, 59. “We don’t have solutions. We don’t even know where to get the money they’re asking for.”

Only a very small number of traders accept digital payments, and even then, residents say, they impose tough conditions - such as inflated prices or demands for partial payment in cash.

Displaced Gazan Duaa Ismail, originally from Beit Hanoun in the north of the enclave, says even when goods are available, she cannot afford them due to a lack of cash.

“We’re suffering badly from a shortage of money, and that makes it even harder to get basic items like flour and sugar - when they’re even in stock,” she told Asharq Al-Awsat from a shelter in Gaza City’s Sheikh Radwan neighborhood.

Ismail said that during a brief ceasefire, some traders had accepted digital payments through mobile apps. “But once the war resumed, things worsened, and they stopped taking them altogether,” she said.

Salaries They Can’t Spend

The crisis has also hit public-sector employees, private workers, and international aid staff, many of whom receive salaries through bank transfers or mobile wallets but have no way of accessing their funds with banks shuttered. They are forced to rely on currency dealers or traders with access to physical cash.

Amjad Hasballah, an employee with the Palestinian Authority, said he has been cashing his monthly salary through mobile banking apps for over a year and a half, paying a steep commission to money traders in return.

“When I received my last salary in early April, the commission had reached 30%,” he said.

Speaking to Asharq Al-Awsat, Hasballah explained that at the start of the war, commissions hovered around 5%, but they spiked during Ramadan, peaking at 35% around Eid al-Fitr, before dipping slightly to 30%.

“My salary is just 2,800 shekels. When I pay a 30% fee, there’s barely anything left,” he said bitterly. “At this point, the traders might as well take the whole salary and just give us pocket money.”

Caught in a Trap

Jamal Al-Mashal, a father of six who lost two children in an Israeli airstrike, said he lives off 1,000 shekels (about $280) in monthly international aid. But even that amount is slashed by up to 30% when he exchanges it through local traders.

“People in Gaza have become a cash trap for currency dealers and big traders,” he said. “They’re exploiting our desperation, and it’s like a harvest season for them - raking in profits while we suffer.”

The poorest and most vulnerable are hit hardest. Many international agencies rely on electronic payment platforms to distribute aid to these groups, who often have no access to physical currency.

No Oversight, No Restraint

The Hamas-run government has made attempts to cap commission rates at 5%, but those efforts have largely failed. Officials blame ongoing Israeli targeting of personnel involved in regulating the process.

Money changers defend the high fees, arguing that the lack of currency entering Gaza leaves them with limited options.

“We raise commission rates because there’s simply no new cash coming in,” one trader told Asharq Al-Awsat. “Once money is distributed to the public, we have no way of getting it back. What goes out doesn’t return.”

He added that while ministries and law enforcement have tried to impose limits, traders view the rules as unfair. “There have been attempts to regulate us, but we haven’t complied - they’re asking too much from us under impossible conditions,” he said.

Some municipal leaders and community elders in Gaza have recently appealed to the Palestinian Monetary Authority in Ramallah to intervene in what they describe as unchecked profiteering by traders controlling access to scarce cash.

They have called for greater oversight, including monitoring and freezing the traders’ bank accounts.

The authority has repeatedly warned against exploitation of civilians and threatened to take action. But in practice, traders continue to charge hefty commissions on money transfers with little deterrence.

The Authority has urged residents to use its Instant Payment System available through mobile banking apps, which it says offers a practical alternative to cash, promotes digital payments, and enables real-time transactions.

Cash Squeeze Tightens Further

Despite the hardship, Israel is considering new measures that could further tighten the financial stranglehold on Gaza. One proposal involves withdrawing the 200-shekel banknote (worth about $55) from circulation, on the grounds that Hamas allegedly uses it to pay salaries to its fighters.

The suggestion was reportedly made by Israeli Foreign Minister Gideon Sa’ar to Bank of Israel Governor Amir Yaron, who rejected the move. Other proposals include voiding the serial numbers of banknotes believed to be inside Gaza, effectively rendering them worthless, a step that could deliver a significant financial blow to Hamas.

According to a report published Tuesday by the Israeli daily Maariv, the proposal has backing from several ministers and economists both within and outside the central bank.

The report estimated that around 10 billion shekels in high-denomination bills - 100 and 200 shekels - remain in circulation within Gaza. These notes entered the enclave over the years through official banking channels supplied by the Bank of Israel.

Economists told Maariv that Gaza residents receive an estimated 150 to 200 million shekels each month through digital transfers from aid organizations and the Palestinian Authority. That money is then converted into cash within markets dominated by Hamas and supported by a network of money changers.

Israeli security sources estimate that Hamas has accumulated up to five billion shekels since the war began and has spent nearly one billion shekels on salaries for fighters and new recruits. The sources claim Hamas has profited significantly by reselling aid and fuel at inflated prices during the conflict.