EU Suspends Select Sanctions on Syria in a Move Toward Stabilization

French minister of Foreign Affairs Jean-Noel Barrot speaks at the European Council headquarters in Brussels on January 27, 2025. (AFP)

The EU announced on Monday the temporary suspension of specific economic sanctions on Syria, a decision aimed at supporting the country’s stabilization and recovery efforts following the fall of the Assad regime last month. The suspension, which will last for an initial period of one year, includes sanctions on the energy, transport, and banking sectors, signaling a significant shift in Europe’s approach to Syria after more than a decade of isolation and punitive measures.

The announcement came after a meeting of EU foreign ministers in Brussels, where French Foreign Minister Jean-Noël Barrot confirmed the decision. “We will lift or suspend some specific sanctions that were imposed on the energy and transport sectors, as well as financial institutions that are vital to the country’s financial stability,” Barrot said.

EU foreign policy chief Kaya Kallas emphasized that this step-by-step approach is intended to balance economic relief with demands for political reform and inclusivity. “If the new leadership in Syria takes steps, the European Union will take steps too,” Kallas said, highlighting that the suspension is reversible should progress stall.

A Carefully Calibrated Decision

The move reflects both optimism and caution among EU member states. While the suspension of sanctions aims to provide relief to Syria’s struggling economy, it is not a “blank check,” as German Foreign Minister Annalena Baerbock stressed. “The new rulers will have to involve all segments of the population in the transition process, which should lead to a new constitution and elections. Women’s rights and minority representation must also be prioritized,” Baerbock said.

Diplomats see the easing of sanctions as a way to address Syria’s pressing humanitarian and economic needs while encouraging the Syrian Caretaker Government (SCG) to implement reforms. The decision is expected to improve infrastructure and living conditions, particularly in the energy and transport sectors, which have been identified as critical for stabilizing the country and facilitating the return of refugees.

SCG Welcomes the Decision

Syrian Foreign Minister Asaad al-Shaibani welcomed the EU’s decision as a positive step toward economic recovery. “We warmly welcome the suspension of sanctions for one year and hope this will pave the way for lifting them permanently,” al-Shaibani said in a statement. He added that the move would “have a positive impact on all aspects of life for the Syrian people and ensure sustainable development.”

The SCG has been vocal about the need to lift international sanctions to advance reconstruction and alleviate the economic suffering of millions of Syrians. Syrian Trade Minister Maher Khalil al-Hassan previously noted that sanctions had severely limited the country’s ability to import essential goods like fuel and wheat, despite the willingness of other nations to provide them.

Economic & Political Implications

The sanctions relief comes as Syria faces a dire economic situation, with a UN report estimating that GDP has contracted by 64% since 2011, and 90% of Syrians live below the poverty line. Experts hope that easing sanctions will revitalize key sectors, improve living standards, and reduce the burden on neighboring countries hosting Syrian refugees.

The EU’s suspension includes measures that will allow Syria’s airports to operate more effectively, facilitating the movement of goods and people. Rebuilding the energy sector is also seen as essential to stabilizing daily life and attracting foreign investment.

However, the EU has made it clear that the suspension is conditional and reversible. European diplomats emphasized that future sanctions relief will depend on the new Syrian administration’s progress in areas such as governance, human rights, removal of “foreign influences” and the inclusion of all religious and ethnic groups in the political process.

Looking Ahead

As Syria embarks on a fragile path to recovery, the EU’s decision to suspend sanctions is a critical step in addressing the country’s humanitarian and economic crises. However, with the suspension set for only one year, the onus is on the new Syrian administration to demonstrate tangible progress in governance, inclusivity, and human rights.

The EU’s foreign policy chief, Kaya Kallas, underscored this point, stating that the bloc is ready to reopen its embassy in Damascus to closely monitor developments. The EU also reaffirmed its commitment to supporting the work of the UN in facilitating a comprehensive political transition in Syria. “This is a historic opportunity for Syria,” Kallas said. “The future of its people depends on the steps taken in the coming months.”

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