Syria allegedly terminates currency printing agreement with Russia, considering UAE and Germany for potential new banknote production.
Syria's Currency Shift: Moving Away from Russia
In a groundbreaking decision, Syria is planning to print its new currency not in Russia, but in Germany and the UAE, signaling a significant departure from over a decade of wartime partnership. This news comes from a Reuters report citing three anonymous sources familiar with the matter.
The change in Syria's foreign policy and economic stance is evident following the fall of the Russian-backed regime of Bashar al-Assad towards the end of 2024. With sanctions against Syria easing, the new Syrian administration is keen on establishing stronger relationships with Arab and Western countries, ending its excessive reliance on Moscow.
Syrian authorities are reportedly holding preliminary talks with Oumolat, a UAE-based company, and have also garnered interest from Germany. The state-owned Bundesdruckerei and the private company Giesecke+Devrient in Germany have expressed their interest in the new currency deal.
Two Syrian sources confirm that the governor of Syria's central bank and the finance minister visited Oumolat in early May. A European official has also acknowledged German's interest in the new currency deal.
Up until now, Russia had been Syria's primary banknote producer for over a decade. With EU and US sanctions cutting off access to European contractors, that partnership is set to end this year.
Since the removal of Assad, Syria has opened the door to tentative diplomatic re-engagement with Western and Arab capitals, despite the internal instability it continues to face. Even U.S. President Donald Trump announced the lifting of sanctions on Syria on May 13.
The new Syrian President Ahmed al-Sharaa, who succeeded Assad, has made it a priority to end Syria's prolonged isolation and crippling international sanctions.
Ukraine has also initiated a dialogue with the new Syrian government. In December 2024, Ukraine's Foreign Minister Andrii Sybiha visited Damascus, stating at the time that Kyiv and Damascus share similar views on Russia's continued military presence.
Behind Syria's Economic Revival
This currency redesign is part of a broader strategy to revitalize Syria's economy after the easing of sanctions. The new currency will depart from its previous design by removing former President Bashar al-Assad's image from some denominations, symbolizing a shift away from the past era. This rebranding effort is aimed at attracting new economic partnerships with Western and Gulf countries.
Syria's quest for stability in its economy, following several years of civil war, has led to this strategic move to engage with new international partners. Despite ongoing connections with Russia, including recent shipments of cash, fuel, and wheat, Syria is now focusing on reinforcing its ties with the UAE and other Western nations.
In the context of Syria's economic revival, the new Syrian administration is seeking to strengthen relationships with the UAE and other Western nations, particularly in the industry and finance sectors, as they have expressed interest in printing Syria's new currency, signaling a shift away from Russia. Simultaneously, politics also play a crucial role in these new partnerships, with the new Syrian President, Ahmed al-Sharaa, prioritizing ending Syria's prolonged isolation and easing international sanctions.
