EU, US Ease Syria Sanctions: Recovery or Risk?
Western allies have lifted sanctions on Syria, but policy tools remain in place if geopolitical risks escalate.
Image credit: Reuters
The European Union is set to lift select sanctions on Syria, targeting economic recovery while maintaining restrictions on arms and military dealings.
The announcement may have slightly pushed crude oil prices lower as a function of reducing the Middle East’s risk profile. However, the market pandemonium over DeepSeek likely overshadowed the move.
Sanctions, first imposed in 2011, have included oil and arms embargoes, technology export restrictions, and strict financial limitations. The focus now shifts to supporting Syria’s infrastructure, energy, and financial sectors.
The easing comes as Europe monitors the rise of Hayat Tahrir al-Sham (HTS), a former Al Qaeda affiliate still labeled a terrorist group by many Western nations.
Historical context: HTS has attempted to distance itself from its Al-Qaeda roots, claiming a focus on Syrian issues rather than global jihad. It has rebranded multiple times to emphasize this shift to local governance and Syrian nationalism, but skepticism remains about the depth of this change.
Hence why the EU has signaled readiness to reopen its embassy in Damascus but is ready to implement a “snap back” mechanism to quickly reinstate sanctions if Syria’s leadership heads in the wrong direction.
A snapback mechanism is a policy tool that allows previously eased sanctions to be reinstated rapidly if agreed-upon conditions are breached or if there's a return to undesirable policies. It allows policymakers to avoid a lengthy process of reinstating sanctions.
The United States has already issued temporary sanctions relief, including a six-month license for transactions tied to governance, energy, and personal remittances.
Exceptions for humanitarian aid, such as earthquake relief, remain in place. Similarly, the EU will ease sanctions on energy, transport, and financial sectors, along with restrictions on air travel, shipping, and banking, but only for one year and under international oversight.
Sanctions targeting Assad and his allies will remain.