Syria Ends Currency Printing Deal with Russia, Opting for Germany
Syria has reportedly ended its currency printing arrangement with Russia, marking yet another setback for Moscow’s diminishing influence in the Middle East. For years, Syrian banknotes were printed by Russia’s state-owned Goznak, a firm responsible for producing secure documents and currency for several Kremlin-aligned regimes. That relationship now appears to be over, with Syria turning to Germany—and potentially the UAE—for its future currency needs.
The decision signals a significant shift in Syria’s strategic orientation. While no official announcement has been made by Damascus, sources within the region confirm that contracts with Russian printers have been suspended, and negotiations are underway with German providers to take over production of the Syrian pound. The UAE is also being considered as a secondary printing partner.
For Moscow, this move is more than a lost business deal—it’s a symbolic blow. Russia’s currency-printing arrangement with Syria was part of a broader strategy to exert soft power and maintain economic leverage over the Assad regime, which has relied on Moscow’s support for survival throughout the country’s protracted civil war. With Syria quietly stepping away from this dependency, it sends a message that even close Russian allies are reevaluating the cost of loyalty.
Reports indicate that logistical problems and declining quality from Russian suppliers played a role in the decision. Some deliveries of Syrian pounds were reportedly delayed, and others arrived in poor condition, undermining confidence in Russia’s reliability. As sanctions isolate the Kremlin and its economy strains under the weight of war, Russia’s ability to fulfill even basic commercial obligations is being questioned by its partners.
This change comes just days after Syria canceled another major agreement with Moscow: a 49-year lease allowing Russia to manage the Tartus port. That contract was torn up and replaced with an $800 million deal with the UAE’s DP World. The timing of both decisions points to a larger pattern—Syria is no longer willing to mortgage its infrastructure and currency to a declining, isolated power.
The Kremlin’s grip on its allies is slipping not just in grand theaters of war but in the small, transactional details of influence: who prints the money, who runs the ports, who delivers on promises. And when even Assad—perhaps Putin’s most dependent client—starts walking away from Russian guarantees, it’s clear that Moscow’s so-called strategic depth is shallow indeed.
Syria’s currency may soon be printed in Europe, not Russia. A quiet change on paper—but a loud message in geopolitics.
Previously, Syria terminated its longstanding port agreement with Russia. Meanwhile, Russia faces deepening fiscal crisis.