Will ‘Syrian Understandings’ Stop the American-Russian Collapse?

US President Joe Biden and Russian President Vladimir Putin arrive to meet at the Villa la Grange on Wednesday in Geneva, Switzerland. (AP)
US President Joe Biden and Russian President Vladimir Putin arrive to meet at the Villa la Grange on Wednesday in Geneva, Switzerland. (AP)
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Will ‘Syrian Understandings’ Stop the American-Russian Collapse?

US President Joe Biden and Russian President Vladimir Putin arrive to meet at the Villa la Grange on Wednesday in Geneva, Switzerland. (AP)
US President Joe Biden and Russian President Vladimir Putin arrive to meet at the Villa la Grange on Wednesday in Geneva, Switzerland. (AP)

Ever since Russia’s direct military intervention in Syria in late 2015, every summit between President Vladimir Putin and his American counterpart former President Donald Trump was an opportunity to reach understandings that would bring Washington closer to Moscow’s stance on the crisis.

Now, Syria, in wake of Wednesday’s summit between Putin and US President Joe Biden, has become a “buffer zone” to halt the major collapse between Washington and Moscow. The leaders discussed cooperation in limited files – small or strategic – playing out in Syria.

Trump, who “trusted” Putin, agreed during an unannounced meeting on the sidelines of the G20 summit in Hamburg in 2017, to a ceasefire in southern Syria. He also proposed ending the secret program that was run by the Central Intelligence Agency (CIA), with the participation of Arab and western countries, to support the Free Syrian Army through Jordan to the south. The program helped the FSA combat the Syrian government.

This was a “gift” offered by Trump to Putin before their meeting on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Vietnam in 2017.

The two leaders did not hold a direct announced meeting, rather they sufficed with issuing a statement in which they expressed their “rejection of a military solution in Syria.” They also agreed to keep open channels of military communication between Russia and the US with the aim of averting dangerous accidents between forces fighting ISIS.

Previously, the American and Russian armies had agreed to a deconfliction arrangement in Syria. They also designated a separating line, which is the Euphrates River, whereby US-backed forces would be deployed east of the river and Moscow-backed forces would be deployed to its west.

In July 2018, Putin and Trump met in Helsinki. Among several points, they announced their commitment to “guaranteeing Israel’s security”. Then Israeli Prime Minister Benjamin Netanyahu had been pushing the two leaders to take efforts to “keep Iran out of southern Syria.”

In August 2018, it was announced that an international-regional deal on southern Syria was reached. Russia's special envoy to Syria, Alexander Lavrentiev said that Hezbollah fighters and Shiite militias backed by Iran had pulled out of the area. The Iranians, who work as military “advisors” to the government forces, were not included in the deal.

Wednesday’s Putin-Biden summit differs from previous meetings between the Russian and American leaders. The goal behind the cooperation in Syria has changed. It is no longer about building trust or offering American “gifts” to Russia. But Syria is now being used as an arena to stop the collapse in American-Russian relations, which are at their lowest point since the Cold War. Ties have deteriorated because of sanctions, cyberattacks, diplomatic tensions, meddling in interna affairs and differences over North Korea, Ukraine and others.

It is widely believed that despite the “red lines” that Putin and Biden sought to draw over contentious issues, they sought cooperation over others, such as the Iran nuclear file, Syria and the fight against terrorism.

On Syria, the Biden administration is prioritizing the continued defeat of ISIS, halting the regime’s chemical weapons program, ensuring Damascus’ commitment to the 2013 Russian-American agreement and delivering cross-border humanitarian aid to Syrians.

Ahead of Wednesday’s summit, the Americans and Russians on the highest levels sought to exchange various political and field messages in all files. This included Russia’s strikes on Idlib that targeted leading members of the terrorist Hayat Tahrir al-Sham group and the Americans’ push to increase the number of border crossings to deliver aid.

It all likelihood, the Geneva summit will give the green light for keeping open the channel of dialogue between Russia and the US in Vienna. Washington was awaiting a call from Moscow, while Moscow was waiting for Washington to take the initiative. The Geneva summit probably put a stop to this endless loop and will pave the way for the two sides to renew cooperation in several files:

1 – They will maintain military arrangements east of the Euphrates to prevent any collision. Moscow would also encourage Damascus and the US-backed Syrian Democratic Forces (SDF) to hold dialogue over operational and perhaps even political arrangements.

2 – Damascus would be pressured to respond to inquiries by the Organization for the Prohibition of Chemical Weapons (OPCW) in return for restoring the government’s privileges at the group. The government was recently included in the World Health Organization’s executive board in the Eastern Mediterranean region and a Syrian special representative was appointed to the Special Committee on Decolonization.

3 – The ground would be paved for extending the international resolution on cross border aid that expires next month. The Biden administration is seeking the opening of three crossings, while Russia’s agreement to extend the opening of the current crossing – Bab al-Hawa – would be interpreted as a sign that it agrees to the continued cooperation.

Arab and regional countries will draw their own conclusions over the Putin-Biden summit and what it entails for Syria.

The implications of the summit on Syria will be revealed during the briefing by UN special envoy to Syria Geir Pedersen to the organization in New York on June 25. They will also be revealed when US Secretary of State Antony Blinken chairs the meeting of the small group of foreign ministers ahead of the meeting of members of the international coalition to defeat ISIS on June 28. The implications of the summit will be tangibly felt on July 11 when the Security Council votes on the cross-border aid resolution.

Some observers believe that these specific Syrian signals could expand to include other issues, such as Iran’s military presence in the war-torn country, especially if Washington and Tehran agree to return to the nuclear deal. This issue would in turn be tied to Damascus normalizing relations with Arab countries and its return to the Arab League. In return, it would receive help in its reconstruction.



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.