- Some sanctions from trade and oil embargo, asset freezing to financial transaction bans and many more still imposed on Syria despite fall of Assad regime on December 2024
- US President Donald Trump's decision to lift sanctions on Syria would mean significant relief for Syrian economy and stability
- Following Trump's announcement, Syrian pound gains around 8% in value against US dollar, according to state-run Syrian Arab News Agency (SANA)
ISTANBUL
Syria and the overthrown Bashar al-Assad regime were subjected to a wide variety of sanctions from many countries around the world for violently quelling anti-government demonstrations in 2011, which led to the civil war in the country.
Washington had branded Syria a "state sponsor of terrorism" in 1979 and imposed further restrictions in 2004, thus, some of these penalties were in place before the war.
The 61-year Baath regime’s attacks on the Syrian populace and infrastructure to keep holding onto power left behind a severely damaged economy, while the 13-year-long civil war further devastated Syria’s development, infrastructure, economy, and human resources.
The civil war brought destruction to homes, businesses, schools, hospitals, public buildings, sewage systems, telecommunications, and electricity distribution and generation systems.
The Western countries' sanctions on Syria have been crippling the country's economy and people. The Syrian economy has been in a free fall for 14 years since the start of the Civil War.
The gross domestic product (GDP) of Syria declined by more than 43% over the course of the civil war, falling to $23.6 billion in 2022 from $67.5 billion in 2011, according to World Bank data.
The currency of Syria, the Syrian pound, has lost more than 100% of its value against the US dollar since the start of the Civil War.
The sanctions, while aimed at the government, contributed to a humanitarian crisis. Access to vital goods, such as medical supplies, food, and clean water, became more difficult due to the restrictions on trade. Millions were displaced, both within Syria and across borders, creating one of the largest refugee crises in modern history.
However, on Wednesday, US President Donald Trump stated that the US sanctions against Syria will be lifted.
“After discussing the situation with (Saudi) Crown Prince Mohammed and President (Recep Tayyip) Erdogan of Türkiye, I'm also ordering the cessation of sanctions against Syria to give them a fresh start. It gives (Syria) a chance for greatness," he said.
Trump's remarks came during his Gulf tour, which began on Tuesday in Saudi Arabia. The US president is now in Qatar and will also visit the United Arab Emirates.
What are the Western sanctions?
US' specific sanctions
The yearly National Defense Authorization Act, sometimes referred to as the "Captagon Act," was approved by US President Joe Biden a year and a half ago and contained provisions for "combating Assad's drug trafficking and stockpiling."
The law claims that components of the Syrian government have a major role in the production and trafficking of captagon, and that they collaborate with other armed organizations, including Hezbollah, on distribution routes and logistical assistance.
Washington also implemented the Caesar Act in June 2020, blocking reconstruction funding and imposing financial penalties on Syrian officials, businesspeople, and any foreigners doing business with Damascus.
Trade embargo
The US and the EU, along with many countries, have strictly restricted the export of goods to Syria. Dual-use items, or those that may be used for both military and civilian purposes, are prohibited. Examples of these items include sophisticated technology, communications equipment, and some industrial components.
Some countries have also prohibited the imports of specific goods from Syria, such as gas and oil, in an effort to lessen the amount of money the Syrian government gets from these sectors.
Oil embargo
Syria is one of the countries that depend on the revenue of oil and natural gas exports. To deprive the Syrian regime of its main source of revenue, many countries stopped importing oil from Syria.
These restrictions include banning the sale of equipment required for oil extraction or refinement, as well as preventing foreign businesses from participating in Syria's energy industry or buying Syrian oil.
Financial transaction bans and asset-freezing
Foreign financial institutions were prohibited from doing business with the Central Bank of Syria, a move that isolated the Syrian banking system from the rest of the world and made it challenging for the Syrian government to finance significant financial operations or engage in international transactions.
Western nations placed political and diplomatic pressure on Bashar al-Assad's government on a regional level. In 2011, Syria's membership in the Arab League was suspended because of the disproportionate brutality against demonstrators.
The assets of government officials and those connected to the Syrian regime, as well as accounts held by the Syrian Ministry of Finance and the Central Bank of Syria, have been frozen by the US and EU. This covers accounts kept in other nations or at overseas banks.
Due to their involvement in human rights abuses, a number of Syrian leaders, including the former President Bashar al-Assad and his family, have also had their personal assets frozen in Western nations.
Travel restrictions
Several nations, including the US and EU members, have banned Syrian officials from traveling in order to punish them for human rights abuses.
Other Syrian citizens suffered as a result, since very strict requirements were implemented for admission visas to several Western countries.
Sanctions against Assad family and close circle
Bashar al-Assad's name was explicitly listed among those who were sanctioned for war crimes and human rights abuses under the Caesar Act. Assad was one of 39 key Syrian officials and institutions on the list, along with his wife and family.
On this list are Bashar's son Hafez al-Assad, General Zuhair al-Assad, his father's half-brother, and his son Karam al-Assad.
Because of his active involvement in the Syrian civil war and the atrocities against civilians, Maher al-Assad, Bashar al-Assad's brother, was also added to the sanctions list.
Among the other targets were Assad's cousin Rami Makhlouf, one of Syria's wealthiest businessmen; Jamil Hassan, the former chief of Syrian Air Force Intelligence; businessman Fares al-Shehabi; and Ali Mamlouk, the head of Syria's National Security Bureau and one of his closest security aides.
The list also includes Syrian businessman Khaled Qaddour, a personal friend of Maher al-Assad and a major participant in the nation's drug production chain, as well as Assad's cousins Samer Kamal al-Assad and Wassim Badi al-Assad.
Imad Abu Zureiq, a former leader of an armed organization opposed to the regime and who was heavily involved in heroin manufacture and smuggling in southern Syria, was also listed.
How would the lifting of sanctions affect Syria?
Some nations, including the EU, have already lifted some sanctions on Syria. The EU announced on Feb. 24 that it was suspending sanctions on Syria’s energy, transport, and banking sectors to aid the country’s reconstruction after the fall of the Bashar Assad regime.
If the US were to go on with lifting its sanctions, Syria's financial and economic systems and institutions would see a big sigh of relief.
The oil industry's recovery would probably be the most obvious advantage. Oil exports would be possible once more, giving the government a crucial source of income.
Additionally, foreign businesses could start making investments in Syria, especially in industries like agriculture, telecommunications, and construction. This flood of capital may contribute to the creation of jobs and the recovery of industries devastated by the conflict.
Syria would be able to restore trade relations with nations in the region and beyond if sanctions were lifted. Syria would once more be able to import products like food and technology at affordable costs, which might help stabilize the country's economy and lower inflation.
If sanctions were lifted, US businesses would be able to bid against Chinese corporations for contracts in Syria's anticipated $400 billion reconstruction project.
In fact, the possible positive effects of the lifted US sanctions are already being felt, as the Syrian pound has gained around 8% against the US dollar since the announcement of Trump on Tuesday, according to the state-run Syrian Arab News Agency (SANA).
A prosperous and stable Syria would also reduce the refugee flows into Türkiye and Europe, as Syrians constitute the largest refugee group in the world with 6.3 million people, according to UN refugee agency data.
