As Syria begins to rebuild after the fall of President Bashar al-Assad's regime, a vital question for foreign governments is whether, when and how to ease the sanctions that were imposed while President Assad was in power. Current sanctions across the UK, EU and US consist of an arms embargo, asset freezing, travel bans, trade sanctions and director disqualifications. Lifting sanctions could play a crucial role in the country's reconstruction and provide economic opportunities both in and outside Syria.
Steps towards easing sanctions
Syria's interim President, Ahmed al-Sharaa, faces a major challenge as he looks to bring Syria's economy back from the brink of collapse, with the World Bank estimating that there has been an 83% contraction in the Syrian economy between 2010 and 2024. Rebuilding is made even more difficult by Western sanctions, which limit foreign investment in the country and Syria's access to the international banking system through the freezing of funds and economic resources of designated persons and the prohibition of making funds/economic resources available to or for the benefit of designated persons.
Recognising the importance of supporting economic recovery and stability in Syria, some countries have begun easing sanctions. On 6 March 2025, the UK removed 24 Syrian entities from its sanctions list, including the Central Bank of Syria and other state-owned bodies such as the Cotton Marketing Organisation and the General Organisation of Tobacco. On 24 April 2025, a further 12 government and media entities were removed from the targeted Syria sanctions list, meaning they are no longer subject to an asset freeze.
Similarly, the EU has also taken steps to ease some sanctions, although it continues to monitor the situation in Syria. On 27 January 2025, a 'roadmap' was agreed between Member States, following a meeting of the Foreign Affairs Council to lift sanctions on Syria. The High Representative of the European Union for Foreign Affairs and Security Policy confirmed this approach would be designed to boost the Syrian economy. Following this, on 24 February 2025, the European Council decided to suspend restrictive measures on the Syrian energy and transport sectors, indefinitely extend existing humanitarian sanctions exemptions, and lift asset freezes over five Syrian entities and the Syrian Central Bank. Most recently, on 28 May 2025, the EU lifted most sanctions on Syria, particularly in relation to its financial system.
The US has also begun to take steps to ease sanctions, with President Donald Trump announcing on 13 May 2025 that US sanctions on Syria will be lifted, while on a visit to Saudi Arabia. Since then, the Treasury Department lifted regulations banning US citizens and companies from making most financial transactions with Syrian citizens and the State Department announced it was suspending for six months sanctions imposed under the 2019 Caesar Syria Civilian Protection Act.
Roadblocks to easing sanctions
However, while the West seems to be extending an olive branch, there is still a degree of wariness. President Sharaa's history as a jihadist with links to al-Qaeda gives Western democracies reason to pause before too readily removing barriers to foreign investment entering the country. Even as President Trump indicates a willingness to look past this, Senators such as Lindsey Graham have pointed out they want hard evidence that Syria will no longer be a state sponsor of terrorism and as at the date of this article, US sanctions on Syria have not officially been removed, notwithstanding President Trump's announcement. Even if this means that enforcement is unlikely, financial institutions, as well as other conservative industries, are likely to continue to comply with the current sanctions restrictions until they have concrete confirmation that they no longer apply.
Sectarian violence also gives cause for concern. Hundreds were killed in March 2025 in clashes between Sunni fighters and members of the Alawite ethnic group. While President Trump has been able to overlook this in announcing the removal of sanctions, if sectarian violence worsens, it may put political pressure on the West to maintain sanctions. This can also be seen in the EU's recent announcement of restrictive measures against groups accused of, "targeting civilians and especially the Alawite community".
Who might benefit from relaxation of sanctions
- The rebuild: The permitting of transactions between Syrian banks and EU companies for reconstruction purposes, and easing UK and EU restrictions on the energy sector, stands to benefit entities that can invest in the rebuilding of Syria. Foreign entities should remain cautious, however, as not all UK and EU restrictions have been lifted, particularly those aimed at individuals/entities supporting the Assad regime specifically and particular sectors such as chemical weapons, cultural heritage goods, etc.
- Exporters and importers: Those in the food and cotton sectors, for instance, will benefit from the easing of sanctions on state-owned suppliers, such as the Cotton Marketing Organisation. The reintroduction of Syria into the global banking system, and the lifting of restrictions on financial entities such as the Central Bank of Syria, will also make it easier for those engaging in exports and imports to facilitate payments.
- Trading partners: Syria's neighbours Turkey and Lebanon, as well as its major trading partner the United Arab Emirates, all stand to benefit from the strengthening of their supply chains with Syria. The Syrian economy will also benefit from the opening up of global trade, although it remains to be seen how much the country will be affected by the current volatility following President Trump's announcement of US foreign import tariffs (which are set at 10% for Syrian goods, reduced from an initial 41%).
Syria's future
Despite sanctions approaches beginning to relax across US, EU and UK jurisdictions, doing business in Syria will continue to pose challenges. The position may also change and could revert to harsher measures as we have seen with Iranian sanctions, as we see in which direction President Sharaa will take the country, whether further violence breaks out and what political developments take place in the West.
Individuals and companies will need to remain compliant with continuing sanctions restrictions and stay carefully abreast of the latest updates in this area.