How Germany finances the Assad regime in Syria

by time news

2023-08-13 10:03:36

When money is raised for Syria aid at international conferences, the German government is reliably among the largest donors. Hundreds of millions of euros flow from Germany into the country every year. Most of it is issued through the United Nations.

However, it is doubtful whether this is done in a meaningful way. The FAS interviewed more than a dozen people familiar with the issue: Western and Arab diplomats, government officials, UN officials and humanitarian workers. Their statements paint a picture that questions the usefulness of UN aid because it is being systematically abused by Bashar al-Assad. The UN, according to diplomats from the donor countries and also to UN employees, is one of the most important sources of foreign exchange for Damascus. In this respect, the UN and its donors are trapped: in the name of humanity, they are helping to prolong the life of an inhuman regime.

For Germany, of course, it is not only a matter of humanity, but also of interests. Since the refugee crisis of 2015, it has been particularly opportune to be able to describe oneself as “one of the largest donors”, because it suggests that the money is used to “combat the causes of flight”. However, if you take a closer look, then something could also be done with the money something else can be achieved, albeit unintentionally: namely that many of the approximately 500,000 Syrian refugees in Germany are prevented from wanting to return to their homeland. Because the Syrian regime, which benefits from this aid, is the main reason why the refugees are not returning. Polls show that.

Distorted exchange rate

According to information from the Federal Foreign Office, 2.1 billion euros in German aid was spent in 2022 for people in Syria and neighboring countries affected by the Syrian crisis. Around 492 million euros of this went to Syria itself – and around half of that went to the areas controlled by the regime.

Karam Shaar, a Syrian economist and Assad opponent, has collaborated on several studies showing how the regime systematically siphons off money and allows loyal followers to earn a living from UN aid projects. He believes the UN’s humanitarian work is reaching a point where it will do more harm than good. “It’s shocking,” says Shaar. Donor governments aren’t nearly as interested in the paths their money takes “as they should be or as you might expect.” In doing so, they are accountable to taxpayers.”

One of the most prominent examples of the fraudulent Damascus game is the distorted exchange rate that has been imposed on international aid organizations in the squeezed rump state ruled by Assad for years. The national currency has drastically lost value in the course of the conflict. However, the regime sets various exchange rates at its discretion – including one for the UN organizations. They have to buy Syrian pounds from private banks at an exorbitant rate.

At the same time, the regime is forcing these private banks to deposit a good chunk of the many dollars they receive with the Syrian central bank, which is subject to US, EU and UK sanctions. According to a report by the Center for Strategic and International Studies (CSIS) from 2021, Damascus has meanwhile diverted almost 51 cents from every international aid dollar spent in Syria in this way. The gap is no longer the same due to pressure from donors big, says a diplomat. But Damascus still siphons off millions of dollars a year.

#Germany #finances #Assad #regime #Syria

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