Western nations have taken a gradual approach to easing sanctions on Syria, refraining from a complete lift and instead relaxing restrictions on specific sectors under conditional terms. This move appears to be a testing phase to assess compliance with these conditions.
The European decision to partially ease sanctions seems to place Syria’s new administration under scrutiny, with the full lifting of sanctions contingent on its governance approach following the fall of Assad’s regime in December 2024.
U.S. and European Hesitation
The United States and Europe have hesitated to lift sanctions without a clear political transition toward a democratic system that includes Syrian minorities and civil society. At the same time, Syria is in desperate need of funds for reconstruction after years of war, with 90% of its population living in poverty, according to UN estimates.
For its part, the new Syrian administration, led by interim president Ahmad Al-Sharaa, has been striving to convince the U.S. and Europe to lift sanctions and facilitate economic recovery. The administration argues that sanctions hinder the country’s ability to rebuild after more than a decade of devastation.
Partial Easing of European Sanctions
On February 24, 2025, the European Union (EU) announced a suspension of sanctions on certain sectors, including energy, banking, and transportation. A statement from the EU Council specified that restrictive measures on oil, gas, electricity, and transport were temporarily lifted.
However, the easing of restrictions remains limited:
- Only domestic banks providing internal financial services (such as lending and deposits) benefited.
- These banks were not part of the SWIFT global financial system and had no connections with correspondent banks worldwide.
- The freeze on Syrian accounts in European banks remains in place.
- The Commercial Bank of Syria, which controls 70% of local banking activity, remains sanctioned.
Additionally, the EU lifted sanctions on five institutions, including the Industrial Bank, Popular Credit Bank, Savings Bank, Agricultural Cooperative Bank, and Syrian Arab Airlines, allowing them to engage in limited economic activities under Syrian state control.
The British and American Stance
On March 6, 2025, Britain removed 24 Syrian entities from its sanctions list, including the Central Bank of Syria, major commercial banks, and oil companies, unfreezing their assets.
London justified this move as part of efforts to support Syria’s economic recovery and alleviate humanitarian suffering. Among the entities removed from British sanctions were Syrian Airlines and key energy sector companies, which play a vital role in Syria’s economy.
However, the U.S. stance remains unchanged. Washington has not lifted sanctions but did introduce exemptions in January 2025, allowing for some energy transactions and personal remittances into Syria until July 7, 2025 to facilitate humanitarian aid.
The Economic Impact of Partial Sanctions Relief
Experts question the effectiveness of easing sanctions, particularly regarding Syria’s banking sector, due to the continued dominance of U.S. sanctions.
Dr. Mokhles Al-Nazir, an academic and advisor to the Central Bank of Syria, argues that no Western country will risk restoring financial ties with Syria without clear guarantees from the U.S. Treasury Department. Banks fear massive fines or losing access to the U.S. financial system, a risk no major financial institution is willing to take.
Al-Nazir noted that partial sanctions relief remains ineffective unless the U.S. formally lifts its banking restrictions, particularly those imposed under the Caesar Act. The act enforces secondary sanctions, meaning any bank worldwide could face penalties if it engages with blacklisted Syrian entities.
European Hesitation Amid the Syrian Coast Massacres
Despite European diplomatic outreach, recent violence in Syria’s coastal region has complicated efforts to restore relations. In the past week alone, 1,383 people—mostly Alawite civilians—were killed in revenge attacks following assaults on security forces, according to the Syrian Observatory for Human Rights.
The Observatory reported that executions by government-affiliated forces and allied militias took place on March 7–8, 2025.
These violent incidents have raised concerns that ongoing instability will delay or prevent further sanctions relief.
In response, the U.S. and the United Nations issued statements condemning the killings of civilians. U.S. Secretary of State Marco Rubio attributed the violence to “Islamist extremists, including foreign jihadists,” and called on Syria’s transitional administration to hold perpetrators accountable.
The European Union also expressed “deep concern” over the escalation of violence. EU foreign policy chief Kaja Kallas addressed the UN Security Council on March 11, stating:
“The atrocities witnessed in recent days are unacceptable and highlight the fragile state of the country. They must not be repeated. Perpetrators must be brought to justice.”
Kallas also condemned alleged summary executions by armed groups aligned with Syria’s interim authorities. She called for an independent investigation into the attacks on civilians and urged the UN’s Independent International Commission of Inquiry to ensure accountability.
Western Caution Toward Syria’s New Leadership
Western nations remain wary of Syria’s new administration due to its ties to Hay’at Tahrir al-Sham (HTS). Interim President Ahmad Al-Sharaa, formerly a leader of HTS, faces skepticism over his past authoritarian rule in Idlib and the group’s Islamist ideology.
In an attempt to restore confidence, Al-Sharaa announced on March 9 the formation of a special committee to investigate the coastal region’s violence and oversee “national reconciliation efforts.”
In a televised statement, he blamed the escalating violence on “remnants of the Assad regime backed by foreign actors,” accusing them of fueling sectarian strife to destabilize the country.
Al-Sharaa vowed that the new government would not tolerate those responsible for war crimes and violence against civilians. He pledged strict accountability for any individual involved in civilian bloodshed.
Uncertain Prospects for Syria’s Future
Despite diplomatic overtures and limited sanctions relief, Syria’s new leadership faces significant challenges in convincing the West that it is a viable and trustworthy partner for reconstruction.
Whether recent measures will stabilize the country or deepen divisions remains uncertain. For now, Western governments are closely monitoring events before making any further policy shifts regarding Syria’s economic and political reintegration.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
