EU moves toward easing sanctions on Syria's oil and financial sectors

The European Union is currently exploring a potential deal to partially suspend several sanctions on Syria’s oil industry and financial sector, including lifting bans on importing Syrian crude oil and exporting technology to the country’s energy sector.

Under the proposed plan, restrictions could also be relaxed on financing oil exploration and refining activities, as well as the construction of new power plants, Caliber.Az reports citing Bloomberg.

Additionally, several Syrian banks may be removed from the EU sanctions list, and some restrictions on Syria's central bank could be lifted to allow for greater access to funds. However, asset freezes related to the central bank are expected to remain in place.

This move is part of a broader EU strategy aimed at gradually easing sanctions on Syria following the overthrow of President Bashar al-Assad, a long-time ally of Russia and Iran. EU foreign ministers agreed last month on a roadmap to start lifting restrictions, contingent on significant reforms within Syria, such as the inclusion of minorities in governance.

The easing of sanctions would also be reversible if the Syrian government fails to meet these criteria, but EU officials are still discussing the details of how this "snapback" mechanism would be implemented.

Although the measures are still under deliberation and could change before being finalized, the easing of sanctions is seen as a step to support Syria’s fragile transition under new President Ahmed al-Sharaa, a former Islamist rebel leader who helped oust Assad. The lifting of sanctions is expected to aid in the return of millions of displaced Syrians, many of whom are in Europe, and to facilitate the flow of humanitarian aid. It is also hoped that the move will improve protections for women and ethnic minorities within Syria.

The EU’s approach includes efforts to engage with Syria’s new leadership, while also pressuring them to limit Russia's influence in the country. Some EU countries have proposed that any deal to ease sanctions should include the shutdown of two Russian military bases in Syria, which Moscow is negotiating to retain. These bases — one a port and the other an airbase — are vital for Russia's operations in the Mediterranean and in Africa.

Additional proposed measures could involve lifting bans on jet fuel and banknote exports, as well as easing restrictions on airlines and airport access. Several exemptions to existing sanctions, such as the ability to open bank accounts in Syria, are also being considered.

Before Syria's civil war erupted in 2011, the country was producing nearly 400,000 barrels of crude oil per day. However, production has significantly decreased, with many oil fields now controlled by Kurdish forces rather than the central government.

By Tamilla Hasanova