Damascus (Agencies): The new Syrian administration has cancelled a contract with Russian firm STG Stroytransgaz to manage and operate the port of Tartous, signed under former President Bashar Al-Assad, according to Syrian businessmen and media reports.

Syrian government spokespeople did not confirm the reports. However, Syrian newspaper Al-Watan quoted the head of Tartous customs, Riad Joudy, indicating that the investment contract was cancelled after STG Stroytransgaz failed to fulfill the terms of the 2019 deal, which included infrastructure investments.

STG Stroytransgaz, a major construction company, was mandated to invest in and develop the commercial port in Tartous, the second largest port in Syria after Latakia. The contract is separate from Russia’s naval base in Tartous, which the Soviet Union built in the 1970s as part of a decades-old military agreement between Moscow and Damascus.

Russia and Syria’s new ruling administration confirmed they are holding talks on the future of Russia’s military presence in Syria after Syrian rebels ousted Russia’s ally Al-Assad on December 8, 2024. Russian Foreign Minister Sergey Lavrov stated that Moscow is open to constructive dialogue with the new Syrian authorities, particularly on the operation of its military bases in Syria and their temporary role as humanitarian distribution centers.

Lavrov noted that this includes the operation of his country’s military bases, which could temporarily be used as humanitarian aid distribution centers, given the urgent need of the Syrian Arab Republic’s population for foreign aid. He added that the conditions of operation for these bases could become the subject of future discussions with the new Syrian administration.

Commander-in-Chief of the new Syrian administration Ahmed Al-Sharaa stressed that Damascus has strategic interests with Russia and that the new administration is looking after the interests of the Syrian people and does not seek to stir up issues or conflicts with foreign countries.

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