History often rhymes, as Mark Twain is famously quoted as saying.
The story of Syrian President Bashar al-Assad’s flight to Russia—and the presumed transfer of his family’s substantial wealth to Moscow—offers a stark reminder of one of the most contentious financial episodes of the 20th century: the transfer of Spain’s gold reserves to the Soviet Union during the Spanish Civil War.
Known as the “Moscow Gold,” this episode highlights the precarious trade-offs faced by leaders and nations under siege. Both cases vividly illustrate how those who surrender control of their wealth to a more powerful benefactor often find themselves trapped in a gilded cage.
The Moscow Gold: A Historic Precedent
In 1936, as Spain’s Second Republic teetered on the brink of collapse under the onslaught of Francisco Franco’s Nationalist forces, the Republican government made a desperate decision. Over 510 tonnes of gold—72.6% of the Bank of Spain’s total reserves—were shipped to the Soviet Union.
This transfer, initiated by Finance Minister Juan Negrín and carried out in utmost secrecy, was ostensibly designed to safeguard the nation’s wealth and use it to purchase arms for the Republican war effort.
The logistical operation was both meticulous and clandestine. The gold was moved from Madrid to the naval stronghold of Cartagena, loaded onto Soviet ships, and transported to Odessa before arriving in Moscow. Upon receipt, the gold was carefully catalogued by Soviet officials and stored in the vaults of Goskhran, the Soviet state treasury.
Initially, the agreement seemed mutually beneficial. The Spanish Republicans would gain access to Soviet arms and supplies, while the Soviet Union would strengthen its influence over the Spanish Republic.
However, the reality was far less equitable. Once the gold was in Moscow, control shifted entirely to Stalin’s regime. By 1937, the gold was fully integrated into the Soviet state’s reserves, and the Spanish Republicans were left with little leverage.
The promised arms arrived sporadically, were often outdated, and were supplied at inflated prices that consumed much of the gold’s value. In the same way as Putin’s military support to Assad also suddenly disappeared.
The Fallout for Spain
The consequences for the Spanish Republic were devastating. The depletion of its gold reserves not only failed to turn the tide of the war but also left the Republic financially crippled. After Franco’s victory in 1939, the loss of the gold became a symbol of betrayal and desperation.
Efforts to recover the gold were futile, and its disappearance became a political and historical controversy that lingers to this day. For Stalin, the gold was a windfall that bolstered Soviet coffers at a time of global economic uncertainty.
Assad’s Gilded Cage in Russia
Now, almost 90 years later, we see a strikingly similar scenario playing out with Bashar al-Assad. Reports suggest that Assad’s flight to Russia included the transfer of substantial family wealth, likely accumulated during his decades-long rule over Syria.
This wealth, which was presumably intended to secure the Assad family’s future, now resides under the control of Vladimir Putin’s regime.
Assad’s position in Russia bears strong resemblance to the role played by communist leaders in satellite states like Bulgaria or Czechoslovakia under Soviet influence. Much like those figureheads, Assad’s autonomy appears minimal.
Putin has likely extracted all useful intelligence and strategic value from Assad long ago. Now, Assad and his family find themselves in a gilded cage, their wealth little more than another resource in Putin’s geopolitical arsenal.
Adding an ironic twist to this situation are the persistent rumours of discord within the Assad family. Some reports claim that Asma Assad, Bashar’s British-born wife, wishes to divorce and return to London.
If true, this rumour underscores the fractures in a family now bound by circumstances outside their control. Of course, such a move would be almost impossible. Putin, who effectively holds the Assad family’s fate in his hands, would have no reason to permit it. Moreover, Asma Assad would find no welcome in the UK, where her ties to the Assad regime have made her persona non grata.
Note: Cartoon created with fal.ai/FLUX