Iran Update, May 3, 2023
May 3, 2023 - ISW PressIranian President Ebrahim Raisi signed 15 cooperation agreements with Syrian President Bashar al Assad in Damascus, Syria on May 3, which could improve the Iranian economy and increase regime stability. Raisi signed these agreements on the first of his two-day trip to Syria, the first trip an Iranian president has made to Syria since the start of the Syrian civil war in 2011 and Arab Spring. Raisi and Assad signed several memorandums of understanding covering oil, energy, transportation, reconstruction, and communications technology. Raisi also asserted that Iranian companies are prepared to be the primary providers of reconstruction projects in Syria during an interview with Lebanese Hezbollah-run Al Mayadeen on May 2. The head of the Iran-Syria Joint Economic Commission and Iran’s Roads and Urban Development Minister Mehrdad Bazrpash separately announced on May 3 that the commission established a joint Iranian-Syrian bank to facilitate business transactions between the two countries. The commissioner’s announcement of the joint bank while Iran and Syria signed economic cooperation agreements suggests the bank will have a role in funding Iranian reconstruction projects in Syria and transferring payments to Iran. These payments would increase capital inflow to Iran, which would help reinvigorate Iran’s deteriorating economy. The role of Iranian para-statal organizations in generating revenue through Syria’s reconstruction would not alleviate Iran’s high inflation and unstable currency, although the regime may attempt to frame it as such to the Iranian people. Such para-statal organizations include the Khatam al Anbia Construction Headquarters, which is the IRGC’s engineering and development firm that oversees large-scale civil-military construction projects and helps the regime circumvent sanctions.