Under Assad, Syria became one of the most heavily sanctioned countries in the world. After Assad, the EU wants to inject fresh dynamism.
With Bashar al-Assad gone and his autocracy in ruins, the EU is ready to turn the page and start anew with Syria.
Brussels and other capitals have already established direct contact with the provisional government in Damascus led by Hayat Tahrir al-Sham (HTS). EU leaders have laid out the guiding principles for resetting relations. Humanitarian aid has been boosted.
Now, the most decisive step is fast approaching: sanctions relief.
“We want to support Syrians’ economic recovery, and the European Union is ready to ease sanctions on Syria – contingent on the new government’s actions,” High Representative Kaja Kallas said during a visit to Ankara.
A meeting of foreign affairs ministers on Monday is widely expected to yield a political agreement on sanctions relief, which HTS has framed as existential for the country.
Diplomats in Brussels believe there is enough consensus to make the decision but caution the sanctions will not be lifted, in the sense of permanently erased. Instead, they will be temporarily “suspended” and coupled with a “fall-back mechanism” that can reinstate the penalties if HTS fails to deliver on its promises of inclusive governance.
“The suspension of sanctions has to take place as soon as possible and needs to be reversible,” said a senior diplomat. “We will look at the deeds of the new authorities and, if needed, reverse. That’s why it’s a suspension, not a lifting.”
Ahead of the meeting, Euronews breaks down the EU sanctions on Syria.
Financial chokehold
The sweeping sanctions that Brussels imposed in response to Assad’s repression during Syria’s Civil War, where human rights violations were rife, led to the collapse of EU-Syria economic relations. In 2023, Syria was ranked as the bloc’s 143rd trading partner, with commercial flows worth €396 million.
One of the reasons behind these negligible numbers is the hard-hitting restrictions the EU introduced against the Syrian government and the Syrian financial sector to avoid propping up Assad’s war machine with European money.
As a result, member states are banned from providing the Syrian government with grants, financial aid, concessional loans, insurance and reinsurance. The ban extends to the European Investment Bank (EIB), which is not allowed to make any disbursements or payments to Syria. The direct and indirect purchase of Syrian bonds is also prohibited.
When it comes to banking, the sanctions go both ways: European banks are not permitted to open branches in Syrian territory and Syrian banks are not permitted to open branches in EU territory, including joint ventures. The Central Bank of Syria cannot be serviced with European coins and banknotes.
Public and private assistance to support EU-Syria trade, such as export credits and guarantees, is equally outlawed. All in all, the sanctions erect so many barriers that it makes it virtually impossible for European governments and companies to engage with Syrian entities, particularly those associated with the Syrian state.
Although the legal regime contains exemptions and derogations for humanitarian aid, NGOs face a complex, costly landscape in their operations. A 2023 study by the European Parliament highlighted the “widespread refusal” of banks to process any transfers to Syria and the “chilling effect” created by the fear of violating sanctions.
Restoring financial ties with Europe, Syria’s main donor, will be essential to ramp up assistance for reconstruction, infrastructure and public services, which means these sectorial sanctions are highly likely to be suspended as a first step.
ADVERTISEMENT“This is one of the things we’re looking at,” said another diplomat. “We’re aware we need to move quickly – sooner rather than later. We need sanctions suspension to be able to assist Syria in its transition.”
Focus on energy
Unlike other Middle Eastern countries, Syria is not a leading exporter of oil and gas. However, for the government, both fuels are crucial revenue to sustain the economy.
Before the start of the civil war, Syria used to produce almost 400,000 oil barrels per day. But once the fighting began, production plunged to 30,000 barrels per day. The numbers improved in recent years to 95,000 barrels per day.
EU sanctions played a part in this contraction: the bloc introduced a stringent ban on the purchase, import and transport of Syrian crude oil and refined petroleum products.
ADVERTISEMENTThe ban aims at crippling Syria’s oil industry as it prohibits European companies from providing direct and indirect funds, key equipment and technical assistance, all of which are necessary to upgrade the infrastructure. A similar ban applies to Syria’s gas industry.
Additionally, the EU forbade its companies from taking part in the construction of new electricity plans in Syria. Acquisitions, joint ventures, loans, credits and technical assistance in this field are not allowed either.
Energy sanctions – particularly those on electricity generation – have come under scrutiny in the aftermath of Assad’s fall due to the severity of the humanitarian crisis and the sheer destruction left by the protracted war, where power outages are frequent.
Besides banking and financing, energy is the other key sector most likely to be addressed by foreign ministers as part of the sanctions relief.
ADVERTISEMENTThe elite and the army
Finance and energy represent the most important strands in the EU sanctions on Syria due to their far-reaching impact and economic implications.
But there is more, much more.
In a bid to target Syria’s affluent elite, which was considered close to the Assad family, Brussels banned the export of EU-made luxury goods, such as vehicles, boats, jewellery, gems, pearls, wines, spirits, caviar, truffles, clocks, shoes and handbags.
The trade of gold and diamonds was also proscribed.
ADVERTISEMENTWith an eye on Assad’s military, the EU outlawed the export of a long list of dual-use goods, like protective suits and gas masks, as well as telecommunication equipment, which the army could have deployed to crack down on protesters.
Additionally, the bloc banned the export of toxic chemical agents, fearing they could be used to manufacture weapons of mass destruction. (The civil war registered dozens of episodes in which Assad’s forces deployed chemical weapons, usually chlorine, sarin or mustard gas, to kill rebels and civilians, prompting global outrage and harsher sanctions.)
On top of that, the EU has an outright arms embargo on Syria that includes weapons, ammunition, military vehicles and spare parts, among others.
In parallel with these sectorial sanctions, Brussels blacklisted a wide range of individuals, such as government ministers, military and intelligence officers, and leading businessmen, who were accused of enabling the repression.
ADVERTISEMENTThe blacklist, renewed as recently as November, covers 318 people and 86 entities. All of them are subject to an asset freeze and a travel ban.
All of these sanctions are certain to remain in place for the time being, given the volatility and unpredictability in the post-Assad era, where the risk of sectarian violence, extremism and terrorism is still high.
The suspension will relate to “reconstruction, rehabilitation and the possibility to inject positive dynamism” in Syria, said a high-ranking EU official with knowledge of the process. The official stressed relief on weapons, surveillance equipment, dual-use technology, chemicals and blacklisted individuals would “not happen”.
The other sanctions
The transport sector is also under tough sanctions: as of today, flights operated by Syrian carriers, such as Syrian Arab Airlines, are not allowed to land at EU airports and member states cannot export jet fuel to Syrian companies.
ADVERTISEMENTEuropean authorities are obliged to inspect the cargo of vessels bound for Syria if they suspect prohibited items to be on board. If that is the case, the items must be seized.
Moreover, member states are forbidden from trading items of “archaeological, historical, cultural, rare scientific and religious importance” that were illegally removed from Syria after the start of the civil war. According to EU rules, the prohibition will not apply if the cultural items are “being safely returned to their legitimate owners in Syria,” something that might become more feasible in the post-Assad era.
Food and medicines are exempted from any restrictions.
“The sanctions regime is quite complex,” said the high-ranking EU official, warning the agreement between foreign ministers will take “a bit of time” to be translated into legal acts that can pave the way for the actual suspension.
ADVERTISEMENT“We also have the political conditionality that the (new) authorities in Damascus will go in the right direction in terms of inclusivity and stability.”
