We interpret the chiral WZNW model with general monodromy as an infinite dimensional quasi-Hamiltonian dynamical system. This interpretation permits to explain the totality of complicated cross-terms in the symplectic structures of various WZNW defects solely in terms of the single concept of the quasi-Hamiltonian fusion. Translated from the WZNW language into that of the moduli space of flat connections on Riemann surfaces, our result gives a compact and transparent characterization of the symplectic structure of the moduli space of flat connections on a surface with k handles, n boundaries and m Wilson lines.