An investment contract between the former regime's government and a Russian company called STG sparked widespread controversy after the discovery of serious violations that accompanied the agreement, leading to the waste of public funds and depriving farmers of fertilizers amid a stifling economic crisis.
In 2020, the Assad government granted the Russian company STG an exclusive concession to operate the only fertilizer plant in Syria, under the supervision of the Syrian Gas Company and the Ministry of Agriculture. The agreement, which was promoted as a support for the agricultural sector, turned into a gateway for waste and corruption.
The plant consumed more than one million cubic meters of natural gas per day, at the expense of power plants, exacerbating the rationing crisis. The quantities were not officially recorded in the Syrian Gas Company's records, amid accusations of administrative and financial collusion under the supervision of former director Amin Daghri, and estimated losses amounting to millions of dollars.
Despite the high production capacity, the fertilizers did not reach farmers, as most of them were smuggled onto the black market, amid a lack of oversight by the Ministry of Agriculture. What the government received did not exceed a small percentage of the actual production.
Cross-referenced sources confirmed that STG used illegally obtained quantities of phosphate, in coordination with officials in the Geology Department. The company also obtained gas for free, making huge profits without paying any real compensation.
In early 2024, a sharp dispute erupted within the Economic Committee between the Minister of Agriculture and the Minister of Oil, nearly turning into a brawl, against the backdrop of mutual accusations of corruption and causing the collapse of the fertilizer and energy sectors.
Demands are escalating for:
- Immediate cancellation of the STG contract.
- Opening a transparent investigation and holding accountable those involved in the Ministries of Agriculture and Gas.
- Recovering the stolen funds.
- Reorganizing the distribution of fertilizers and raw materials.
This case exposes the danger of opaque contracts with foreign parties, particularly in sectors that affect people's lives. While Syrians suffer from power outages and a shortage of agricultural materials, suspicious parties continue to profit at the expense of the people.
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