The EU has suspended sanctions on Syria’s energy, transport, and banking sectors to support economic recovery after the regime change. The decision aims to facilitate transactions necessary for reconstruction and aid while maintaining the possibility of reinstating sanctions if conditions change. This development comes at a time when Syria is seeking foreign investment to rebuild after a prolonged civil war.
The European Union has announced the suspension of sanctions affecting Syria’s energy, transport, and banking sectors, which is aimed at facilitating the country’s economic recovery following the recent shift in governance. This decision, according to the EU Council, reflects efforts to support a political transition and aid in Syria’s reconstruction and stabilization.
Included in the suspension are four Syrian banks: the Industrial Bank, Popular Credit Bank, Saving Bank, and Agricultural Co-operative Bank, as well as Syrian Arab Airlines. Additionally, the EU has introduced exemptions for financial transactions related to the energy and transport sectors, as well as humanitarian and reconstruction efforts, to promote economic activities.
Kaja Kallas, European Commission Vice President, remarked, “There is hope to build an inclusive country and we are closely working together with the regional actors to achieve this.” Furthermore, the EU has decided to allow the export of luxury goods to Syria for personal use and has extended its humanitarian exemption indefinitely.
Amidst discussions among EU foreign ministers in Brussels, which will also address the ongoing conflict in Ukraine, the EU has retained the option to reinstate sanctions in the future. “It is a step-for-step approach,” Ms. Kallas added, as the EU continues to monitor Syria’s situation.
Engagement with Syria has been cautious under the new leadership of Ahmad Al Shara, a former rebel leader. However, some EU ministers indicated a willingness to promote investments in Syria despite the complexities posed by existing U.S. sanctions. Indeed, Ms. Kallas highlighted the challenges in guaranteeing protection for European investors in Syria due to the complicated banking landscape.
Tobias Lindner, Minister of State at the German Foreign Office, noted an interest among national companies to engage with the Syrian economy, viewing the sanction suspension as an initial step towards revitalizing investments. Meanwhile, calls for lifting sanctions have intensified among Syrians, particularly as reconstruction costs are estimated to range between $250 billion and $400 billion.
Sawsan Abou Zeinedin, the chief executive at the Madaniya network, emphasized the necessity of lifting sanctions to ensure political stability, economic recovery, and a conducive environment for civil society. The EU initially imposed sanctions on Syria in response to the violent suppression of protests that escalated into a civil war, resulting in significant loss of life and displacement.
The European Union’s suspension of certain sanctions on Syria marks a significant effort to support the country’s recovery following recent political changes. This decision aims to facilitate economic activity and reconstruction while introducing necessary financial exemptions. The international community remains attentive to the evolving situation in Syria, recognizing the complexity of foreign investment and the ongoing implications of existing sanctions.
Original Source: www.thenationalnews.com
