Syria terminates deal with Russian firm managing Tartus port

Syria’s new government has cancelled a 2019 agreement with a Russian company to manage the port of Tartus, home to Russia’s only foreign naval base.

Tartous customs director, Riyad Joudi, confirmed the move to the Syrian daily Al-Watan, stating that the port had been operating at minimal capacity due to high fees and rigid regulations on port services. 

Syria’s transitional government, which came into power in November following the ouster of former President Bashar Al-Assad, was now focused on restructuring and streamlining the port’s operations to remove “bureaucratic obstacles” and “enhance efficiency”, Joudi said.

The decision marks a significant shift in Syria’s economic and logistical strategies, as all port revenues will now be directed to the Syrian state.

Assad, a key Russian ally, fled to Moscow as rebels – led by the Hayat Tahrir al-Sham (HTS) – advanced in their capture of strategic Syrian cities on 27 November. Russia also withdrew its navy assets from the base as the rebel offensive expanded before the eventual fall of the Assad regime.

The Russia-Syria Tartus Port deal, signed in 2019, granted Russian company Stroytransgaz a 49-year lease to operate and expand the strategic Mediterranean port.

The facility served as a strategic navy base for Moscow in the Mediterranean and was mostly used to deliver supplies to its military campaign in Syria and to repair warships. It was used to serve Moscow during its invasion and conflict in Ukraine.

Joudi said the Russian engineering construction company, Stroytransgaz, had failed to meet its duties to modernise the facility’s deteriorating infrastructure as per the agreement, adding that Syrian authorities would evaluate the port’s equipment, carry out critical repairs, and implement necessary upgrades to improve operations.

Syria authorities to revamp port operations, boost trade

Joudi confirmed that Syrian port employees, previously under the Russian company’s management, will be reinstated to their original posts, adding that recruitment efforts were underway to meet operational demands.

The customs enforcement unit, previously plagued by corruption, is undergoing a targeted restructuring, Joudi said, emphasising its new mandate to tighten security at key land and sea crossings and intensify efforts to curb smuggling operations.

Joudi announced that customs fees were reduced by 60 percent from previous rates to attract more trade and compete with ports in neighbouring countries.

However, he noted that higher tariffs will remain in place for specific goods to safeguard local industries.

Previous import restrictions were also eased and formerly banned items, such as electrical appliances, would now be permitted to encourage trade, Joudi said.

He highlighted renewed commercial activity at the port, noting a significant increase in ship traffic, with vessels arriving from Syria, neighbouring Arab countries, and international ports. These ships were reportedly transporting a variety of goods, including iron, carbonates, and sugar, underscoring Tartous Port’s growing importance in regional trade.