Iran’s multi-billion-dollar bid to rebuild postwar Syria and cement long-term influence has collapsed following the ouster of President Bashar al-Assad, according to documents obtained by Reuters from Tehran’s ransacked embassy in Damascus.
Modeled on the US Marshall Plan that helped rebuild post-WWII Europe, Tehran’s strategy sought to create political and economic dependency through reconstruction projects, religious diplomacy, and trade.
A 33-page Iranian policy study found in the looted embassy explicitly referenced America’s postwar blueprint, describing Syria as a "$400 billion opportunity" for Iran.
Instead, with Assad deposed by rebel forces in December and exiled to Russia, Iran’s assets in Syria were swiftly dismantled. Embassies were looted, paramilitaries withdrawn, and dozens of projects—including power plants, religious sites, and railways—abandoned.
Reuters reporters uncovered contracts, correspondence, and financial records showing Iran’s deep economic footprint and how it unraveled amid Western airstrikes, corruption, and internal mismanagement. The news agency used artificial intelligence tools to analyze nearly 2,000 documents.
One key project, a €411 million Latakia power plant built by Iran’s Mapna Group, remains half-finished. Other efforts, such as an oil venture in eastern Syria and a $26 million Euphrates rail bridge, were destroyed or halted. At least $178 million in unpaid debts to Iranian firms remain, though estimates of total losses exceed $30 billion.
The collapse comes as Iran faces regional setbacks, including heavy losses among its allies Hezbollah and Hamas, and growing diplomatic pressure from the US.
“The Syrian people have a wound caused by Iran, and we need a lot of time to heal,” said new Syrian President Ahmed al-Sharaa, a former rebel leader, in an interview.
Iran’s foreign ministry declined to comment. Many Iranian officials involved, including Revolutionary Guard commander Abbas Akbari, did not respond to Reuters' inquiries.
For Syrians who worked on Iran-backed projects, the exit is bittersweet. “Iran was here, that was just the reality, and I made a living from it for a while,” said a Syrian engineer who worked on the stalled Latakia project.
