Out-Law News 1 min. read
Easing of EU Syria sanctions creates both opportunities and challenges
31 Jan 2025, 10:47 am
The easing of EU sanctions may create opportunities for EU contractors to contribute to the rebuilding of Syria, although navigating the remaining sanctions and wider risks will be a challenge, an expert has said.
EU foreign ministers recently agreed on a roadmap to ease sanctions targeting Syria. A range of financial, trade and sectoral sanctions are currently in place. For instance, Syrian oil exports are currently banned as well as restrictions on access to global financial channels. However, the EU is keen to begin lifting these measures in a “step by step” approach.
The first restrictions likely to be eased include those impacting the banking, energy, and transport sectors. EU officials are expected to work on the technical details of easing the sanctions following a a change in leadership in Syria in December. EU governments are aiming to help Syria’s recovery, working alongside the new authorities in the country. However, the EU has indicated it is ready to reverse plans to lift sanctions, and reinstate restrictions, if the commitment to a democratic process is not upheld.
Stacy Keen, sanctions expert at Pinsent Masons, said: “A wholesale lifting of the EU sanctions regime is not expected in the short to medium term and there is a risk of sanctions restrictions being reinstated based on the situation on the ground in Syria. Those entering, or considering entering the Syrian market, should, for example, contractual mechanisms should be included in any agreements to address the reinstatement of sanctions restrictions.”
“Wider sanctions regimes may also be relevant to an EU contractor, such as the UK and US sanctions regimes. The UK has yet to announce any decision, or direction of travel, in relation to the UK Syrian sanctions while the US has issued a general licence authorising only certain activities, specifically relating to energy and personal remittances.”
Keen said: “Beyond direct sanctions risk, there are broader practical hurdles to consider. Processing of payments is an example of such a hurdle. Banks are likely to continue to have a risk averse approach to dealings in, or linked to, Syria and may be unwilling to process transactions. Agreements with banks are likely to include clauses relevant to Syria, for example those referencing ‘comprehensive sanctions regimes’, and will require close scrutiny.”
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