European Union Foreign Ministers announced significant changes to their sanctions policy against Syria on February 24, 2024, during the Council of Foreign Affairs meeting. The Ministers decided to lift certain economic sanctions aimed at key sectors of Syria's economy, including energy, capital allocations to the Central Bank, and the involvement of specific Syrian banks. This pivot has been framed as part of the EU's efforts to support the country's political transition and economic recovery.
The sanctions suspension includes the removal of five financial entities—Industrial Bank, Popular Credit Bank, Savings Bank, Agricultural Cooperative Bank, and Syrian Airlines—from the EU's restrictive measures list. These changes facilitate financial and banking transactions relating to humanitarian support and reconstruction efforts, thereby aiming to ease the economic situation for many Syrians.
During the meeting, Kaja Kallas, the Prime Minister of Estonia, highlighted the necessity of facilitating cooperation with Syria and its infrastructure. "We will monitor the situation closely to guarantee the suspensions remain appropriate," Kallas stated, underscoring the EU's commitment to observing the political dynamics within Syria.
Further details reveal the sanctions suspension is not without its conditions. While some sanctions related to the oil and gas sectors are being lifted, the EU retains its restrictions concerning the Assad regime, as well as measures against chemical weapons production and illegal drug trade. Notably, the Council is prepared to evaluate the situation for potential future sanctions, ensuring they adapt to any arising challenges within Syria.
According to statements from the Council, the aim of these measures is to facilitate financial transactions related to sectors impacted by sanctions and to allow more extensive humanitarian support. With over 90% of Syrians living below the poverty line, the necessity of humanitarian aid has never been greater. Reports indicate 16.5 million people within the country require some form of assistance to cover basic needs.
The humanitarian dimensions of the decision included extending the existing humanitarian exception indefinitely. The rules now allow for exceptions on luxury item exports for personal usage, signaling the EU's more inclusive approach to rebuilding the Syrian economy.
Despite these steps forward, Kallas has emphasized the need for the Syrian government to adopt inclusive policies benefiting all social groups within the nation. "If everything does not go well, we are also ready to reinstate sanctions," she cautioned, stressing the precarious nature of the current situation.
The EU's sanctions remain extensive, impacting 318 individuals and 86 entities as part of their broader strategy, which has faced criticism from human rights organizations. Hiba Zayadin, Senior Researcher for Syria at Human Rights Watch, articulated concerns over the ramifications of these sanctions, stating, "They (Western governments) should recognize the immediate harm they are causing to citizens and take substantial steps to lift the restrictions blocking access to basic rights."
The outcome of this new approach from the EU opens up pathways for possible economic uplift, but it remains coupled with the caveat of strong conditionality. The next steps will be closely monitored as the EU continues to evaluate the effectiveness and appropriateness of these suspensions.
Meantime, the legal measures pertaining to the sanctions shift are anticipated to be published on the EU's official website shortly, marking an important milestone as the EU attempts to navigate the complex terrain of international relations, humanitarian needs, and political strategy.