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DW
5 days ago
- Business
- DW
European Union lifts economic sanctions on Syria – DW – 05/28/2025
The Syrian Central Bank and other lenders will now be able to access the European financial market once again. However, economic sanctions based on security reasons will remain in place. European Union countries on Wednesday passed legislation to lift all economic sanctions on Syria except for those based on security grounds. To facilitate the rapid reconstruction of the war-torn country, the Syrian Central Bank and other lenders can once again access the European financial market. It will take effect once published in the EU's Official Journal and carries out a political decision made by EU foreign ministers last week to end the bloc's restrictive measures. "This decision is simply the right thing to do," top EU diplomat Kaja Kallas said. "At this historic time, for the EU to genuinely support Syria's recovery and a political transition that fulfils the aspirations of all Syrians." "Today the EU reaffirms its commitment as a partner for the transition, one that helps the Syrian people to reunite and rebuild a new, inclusive, peaceful Syria," she added. US lifting sanctions against Syria a 'very positive move' To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Stability hope for Syria German Foreign Minister Johann Wadephul said last week that the new Syrian leadership was being given a chance, but warned that it was expected to involve the entire population and all religious groups. Six months after the fall of the al-Assad regime, Wadephul added was important that a united Syria could take its future into its own hands. The EU is also hopeful that once the country has stabilized, hundreds of thousands of Syrian refugees in the bloc will one day be able to return home. Wednesday's decision does not affect sanctions against individuals and organizations with links to the al-Assad regime or responsibility for the violent repression of the Syrian people. Furthermore, export restrictions on weapons as well as goods and technologies used for internal repression remain in force for the time being. Edited by: Zac Crellin
Yahoo
6 days ago
- Business
- Yahoo
EU lifts economic sanctions on Syria
European Union countries on Wednesday passed legislation to lift all economic sanctions on Syria except for those based on security grounds. "This decision is simply the right thing to do, at this historic time, for the EU to genuinely support Syria's recovery and a political transition that fulfils the aspirations of all Syrians," EU top diplomat Kaja Kallas said of the move, which comes around six months after the fall of the al-Assad regime. "Today the EU reaffirms its commitment as a partner for the transition, one that helps the Syrian people to reunite and rebuild a new, inclusive, peaceful Syria," she added. To facilitate the rapid reconstruction of the war-torn country, the Syrian Central Bank and other lenders can once again access the European financial market. The move, which will take effect once published in the EU's Official Journal, carries out last week's political decision by EU foreign ministers to end the bloc's restrictive measures. German Foreign Minister Johann Wadephul said at the time that the new Syrian leadership was being given a chance, but warned that it was expected to involve the entire population and all religious groups. It was important that a united Syria could take its future into its own hands, he said. The EU also hopes that once the country has stabilized, hundreds of thousands of Syrian refugees in the bloc will one day be able to return home. For many years, Syrians have made up a large share of the refugees arriving in Europe. Wednesday's decision does not affect sanctions against individuals and organizations with links to the al-Assad regime or responsibility for the violent repression of the Syrian people. Furthermore, export restrictions on weapons as well as goods and technologies used for internal repression remain in force for the time being.
Daily News Egypt
24-05-2025
- Business
- Daily News Egypt
US eases Syria sanctions; Damascus welcomes move
The United States administration under President Donald Trump on Friday granted Syria comprehensive exemptions from US sanctions, a development aimed at fulfilling a pledge to lift decades-old restrictions on the country, which has experienced conflict for more than 14 years. The Syrian government in Damascus welcomed the decision, describing it as an initial phase in implementing President Trump's commitment to lift sanctions. This commitment was reportedly made at the Saudi-American Investment Forum in Riyadh approximately two weeks prior. Damascus stated the move was 'a step towards alleviating the humanitarian and economic suffering' of the Syrian people. A directive from the US State Department on Friday nullified a range of stringent sanctions imposed by Congress in 2019. It also suspended, for a period of six months, a US Treasury Department measure that applied sanctions to any individual or entity dealing with a specified group of Syrian individuals and entities, including the Syrian Central Bank. Details of Six-Month Exemptions and Sanctions Lifted In a related move, the US Treasury Department announced the lifting of sanctions on Syrian President Ahmed al-Shara and his Interior Minister Anas al-Khattab. This followed the issuance of General Licence No. 25 (GL 25), which provides for the immediate easing of sanctions on Damascus and permits previously prohibited transactions. The licence, issued by the Treasury's Office of Foreign Assets Control (OFAC), specifically lifts sanctions on the Syrian Central Bank, Syrian Arab Airlines, the Radio and Television General Organisation, and the ports of Latakia and Tartous, alongside other individuals and entities. General Licence 25 was issued to provide immediate sanctions relief, consistent with President Trump's declaration to cease all sanctions imposed on Damascus. A US Treasury Department statement indicated that GL 25 authorises transactions previously barred under Syrian sanctions regulations, effectively lifting these sanctions. It also aims to stimulate new investments and private sector activity, which is in line with President Trump's 'America First' strategy. US Secretary of State Marco Rubio said in a statement that he had 'issued a 180-day waiver from sanctions imposed on Syria under the Caesar Act to ensure that sanctions do not hinder investments and to facilitate the provision of electricity, energy, water, healthcare, and humanitarian relief efforts.' Rubio added, 'Today's moves represent the first step in realizing the President's vision for a new relationship between Syria and the United States,' noting that Trump 'made it clear that he expects that the easing of sanctions will be followed by action from the Syrian government.' These developments coincided with Washington's announcement that Thomas Barrack, US Ambassador to Turkey, assumed the role of Special Envoy to Syria on Friday. Background on US Sanctions Policy US sanctions on Syria have historically been multifaceted, encompassing legislation passed by Congress, executive orders from the President, measures imposed by the Treasury Department in consultation with the State Department, and prohibitions on non-humanitarian trade between Damascus and Washington. Additional sanctions were aimed at deterring third countries from engaging in business with Syria. Sanctions on the Syrian Central Bank reportedly persisted even after the fall of former President Bashar al-Assad's regime. These measures prevented the Syrian financial system from accessing global banking networks and hindered efforts to revive the Syrian economy through international financial channels. Congressional sanctions, notably the 'Caesar Act,' were designed to isolate Syria's former leadership by barring anyone conducting commercial transactions with them from the global financial system. These sanctions also specifically impede post-war reconstruction. While they can be waived for 180 days via executive order, the Associated Press reported they could likely be reimposed after six months. Economic Reconstruction and Conditions for Further Relief The new US licence encompasses the lifting of sanctions on the Commercial Bank of Syria, the Syrian Gas Company, and the Syrian Petroleum Company, in addition to the General Organisation of Radio and Television, the General Company for the Port of Latakia, and numerous banking and logistical institutions. The Treasury stated that this authorisation is intended to support the reconstruction of the Syrian economy, its financial sector, and infrastructure, in line with US foreign policy objectives. Attracting new investment to Syria and supporting the new Syrian government are deemed essential for this purpose, with GL 25 facilitating previously restricted economic activities. According to Associated Press, the US State Department last week outlined a three-stage roadmap for further sanctions relief. This begins with an initial temporary and partial easing, contingent upon Syria meeting comprehensive conditions for any future, more permanent, easing or lifting of sanctions. Conditions for reaching the second stage include the removal of Palestinian factions from Syria, the new government assuming control of detention centres holding 'ISIS' fighters, and the integration of the US-backed Kurdish force (Syrian Democratic Forces, 'SDF') into the Syrian army. To reach the third stage, the US administration requires Syria to join the Abraham Accords, normalising relations with Israel, and to provide evidence of the destruction of chemical weapons allegedly possessed by former President Bashar al-Assad's regime. Syrian Government Reaction On Saturday, the Syrian Foreign Ministry formally welcomed the US government's decision. In a statement published on its 'X' (formerly Twitter) platform account, the Ministry acknowledged the 'issuance of an exemption from mandatory sanctions under the Caesar Act and the circulation of General License No. 25 concerning Syria (GL 25).' It described the decision as 'a positive step in the right direction to alleviate the humanitarian and economic suffering in the country.' The Ministry affirmed that Damascus 'extends its hand to all who wish to cooperate on the basis of mutual respect and non-interference in internal affairs,' believing that 'dialogue and diplomacy are the best way to build balanced relations that achieve the interests of peoples and enhance security and stability in the region.' The statement continued: 'Syria also expresses its appreciation to all countries, institutions, and peoples that stood by it, and affirms that the next stage will be a stage of rebuilding what the former regime destroyed and restoring Syria's natural position in the region and the world.' Earlier this month, Syrian Foreign Minister Asaad al-Shaibani reported an agreement to form rapid technical teams following President Trump's sanctions-lifting announcement in Riyadh. European Union Considers Parallel Sanctions Review Following the US move, EU foreign policy chief Kaja Kallas last week proposed a further easing of European sanctions on Syria. This would allow funding for Syrian ministries in areas such as reconstruction and migration. A document dated 14 May, seen by Reuters, indicated the EU would permit member states to finance Syrian Ministries of Defence and Interior for cooperation on reconstruction, capacity building, counter-terrorism, and migration. A special clause would also grant EU member states greater flexibility in dealing with Syrian state-owned entities concerning the destruction of chemical weapons. The new EU proposal would lift sanctions on the Commercial Bank of Syria while maintaining measures against individuals linked to the former Assad administration. EU foreign ministers are scheduled to discuss relations with Damascus at a meeting in Brussels this week, including the potential lifting of sanctions on the Syrian Central Bank. Germany, Italy, the Netherlands, and Austria circulated a joint paper advocating for the removal of sanctions on the Syrian Central Bank and its financial institutions. 'The goal is to provide additional space for socio-economic recovery,' the four nations wrote. The EU has already eased some energy, transport, and reconstruction-related sanctions, along with associated financial transactions. However, certain member states are pushing for more extensive relief to facilitate Syria's transition process.
New York Times
28-02-2025
- Business
- New York Times
As Ramadan Nears, Syrians Feel the Pinch of a Cash Shortage
Days before the start of Ramadan, lines of people snaked down the stairs outside a bank in Syria's capital, Damascus, waiting for hours to withdraw the equivalent of about $15 for the requisite holiday shopping. The new government has imposed severe daily withdrawal limits of about that amount at Syrian banks, dampening what would usually be a festive time as many struggle to buy even the basics for the holy fasting month. 'That can buy maybe a kilo and a half of meat,' said Sleiman Dawoud, a 56-year-old civil engineer among those waiting in the A.T.M. line to withdraw that $15 — 200,000 in Syrian pounds. 'But what about the bread, and vegetables and fruits? Ramadan is coming, and we need to spend.' Ra'if Ghnaim, 75, a retired civil servant, fretted about how he would afford the tradition of giving children small amounts of money at the end of Ramadan as he waited to take out some cash. 'How are we going to celebrate and give gifts to the children?' he asked. This year, Ramadan falls three months after the ouster of the Assad dictatorship that ruled Syria with an iron first for more than five decades. The rebel coalition that has taken over the government in Damascus has instituted several economic changes. It opened the market to imported products. It eliminated bread subsidies — making the staple food 10 times more expensive. It laid off thousands of public-sector employees. And it capped cash withdrawals at A.T.M.s. The prices of many goods other than bread have fallen since the new government took over, but many Syrians still can't buy them because of the withdrawal limits in a cash-based economy where the widespread use of credit cards and e-payments has never taken hold. Getting cash out has become a part-time job of sorts as Syrians spend hours or even days trying to withdraw enough cash to live, much less splurge during a time of large family gatherings and feasts. As Syrian pounds have dried up and the government has started shifting economic policy, the currency has begun to strengthen after more than a decade of weakening. Before the Syrian civil war began in 2011, the exchange rate was about 50 Syrian pounds to the U.S. dollar. When the government was overthrown in December, it was about 15,000, but has since fallen. The Syrian Central Bank, Economy Ministry and Interior Ministry did not respond to questions. The Central Bank alluded to the withdrawal limits in a December statement, saying the measures would be temporary. But they have now lasted for months. This month, a planeload of newly minted Syrian pounds arrived from Russia, where they are printed, according to the state news media. The amount was not made public. 'They indeed do not have enough bank notes. They have a liquidity crisis,' said Karam Shaar, a political economist and senior fellow at the New Lines Institute, a Washington-based think tank, who has been meeting with Syrian officials. 'The current monetary policy that the Central Bank is considering is not finalized, and it doesn't seem to be coherent' he added. More than 90 percent of Syrians live in poverty, and one in four is unemployed, according to the United Nations. And on the ground, and in long bank lines across the country, many are suffering. 'We'll have to cancel the suhoor,' Mahmoud Embarak, a 60-year-old retired military officer, said of the pre-dawn meal that Muslims eat before the start of the daily fast. He said that the new government had recently cut his pension and that his family was now living off his wife's nursing pension. 'It won't be as happy of a time as it has been in the past,' Mr. Embarak added. Ahlam Kasem, 45, cringed at the mention of Ramadan. She was waiting in the bank line to withdraw 200,000 Syrian pounds (about $15) from her monthly salary of 380,000 (about $28) as a civil engineer with the agriculture ministry. 'They told us the government doesn't have any money, the Central Bank doesn't have, the banks don't have,' she said. 'We have so many questions and there are no answers.' So, along with her husband, she took a minibus from their town of Saboora, about 10 miles away, and paid 10,000 Syrian pounds each to get to an A.T.M. at the Damascus bank. She will have to make another trip on another day to withdraw the rest of her salary. That still won't buy much for her family of five — much less for the large gatherings to break the fast characteristic of Ramadan. 'There won't be dinner parties or anything' said Ms. Kasem, who is among the many civil servants who have been laid off with a severance of three months' salary. As she spoke, a man rapped on the bank's metal door, trying to get the attention of an employee inside. No one came. 'We have now gotten to point in Syria where even a cup of coffee may be too much of a hardship for someone to offer you,' she said. 'We're a very social people, but we've gotten to the point where we don't want to visit anyone so as not to put any pressure on them for even a cup of coffee, much less lunch or dinner.' Those concerns were top of mind at the Bab Sraijeh market, a bustling cluster of shops and street vendors along a cobblestone street in the old city of Damascus. The sound of motorcycles driving through occasionally drowned out the competing offers that sellers were yelling out. 'Ten, ten, practically free,' a young man hollered repeatedly, offering a kilogram of olives for 10,000 pounds, less than one dollar. At a small shop selling Ramadan decorations — wooden crescent moons, colorful lanterns and string lights — it was mostly quiet. Occasionally, someone would inquire about the price of an ornament and then walk off without buying anything. 'People don't have money,' said Nour al-Hamwi, 37, who was helping her husband at the shop. 'The banks don't have money, Syria doesn't have money.' Last year, the items were flying off the shelves, her husband said. Now, people are buying only necessities. 'The Ramadan atmosphere will be weaker this year,' Anwar Hamid said. Fatima Hussain Ali, 56, and her husband, Ha'il Ali Jasser, 59, were each carrying several stuffed grocery bags of spices, cheese and flour as they made their way through the market. The staples of Ramadan — olive leaves, oil, rice, bulgur wheat — are cheaper than before the ouster of President Bashar al-Assad. But the couple, who have eight children, were still buying much less than in previous Ramadans. 'Prices are cheaper, but there isn't money,' she said. Except for bread, which has gone from 400 pounds to 4,000 pounds. She doubted they would host any dinner parties this year. If they did, she joked, they might have to ask their guests to B.Y.O.B.: bring your own bread.
Arab News
13-02-2025
- Business
- Arab News
Syria's new leaders zero in on Assad's business barons
DAMASCUS: Syria's new rulers are combing through the billion-dollar corporate empires of ousted President Bashar Assad's allies, and have held talks with some of these tycoons, in what they say is a campaign to root out corruption and illegal activity. After seizing power in December, the new administration that now runs Syria pledged to reconstruct the country after 13 years of brutal civil war and abandon a highly-centralized and corrupt economic system where Assad's cronies held sway. To do so, the executive led by new President Ahmed Al-Sharaa has set up a committee tasked with dissecting the sprawling corporate interests of high-profile Assad-linked tycoons including Samer Foz and Mohammad Hamsho, three sources told Reuters. Days after taking Damascus, the new administration issued orders aimed at freezing companies and bank accounts of Assad-linked businesses and individuals, and later specifically included those on US sanctions lists, according to correspondence between the Syrian Central Bank and commercial banks reviewed by Reuters. Hamsho and Foz, targeted by US sanctions since 2011 and 2019 respectively, returned to Syria from abroad and met with senior HTS figures in Damascus in January, according to a government official and two Syrians with direct knowledge of the matter, who spoke on condition of anonymity. The two men, who are reviled by many ordinary Syrians for their close ties to Assad, pledged to cooperate with the new leadership's fact-finding efforts, the three sources said. Accused by the US Treasury of getting rich off Syria's war, Foz's sprawling Aman Holding conglomerate has interests in pharma, sugar refining, trading and transport. Hamsho's interests, grouped under the Hamsho International Group, are similarly wide-ranging, from petrochemicals and metal products to television production. Hamsho, whom the US Treasury has accused of being a front for Assad and his brother Maher, did not respond to a Reuters request for comment. Foz could not be reached. The establishment of the committee, whose members are not public, and the conversations between Syria's new government and two of the Assad government's closest tycoons who control large parts of Syria's economy have not been previously reported. The new Syrian government's approach toward powerful Assad-linked businesses, yet to be fully clarified, will be key in determining the fate of the economy as the administration struggles to convince Washington and its allies to remove sanctions, Syrian analysts and businessmen say. Trade Minister Maher Khalil Al-Hasan and Syrian investment chief Ayman Hamawiye both confirmed to Reuters the government had been in contact with some Assad-linked businessmen, but did not identify them or provide further details. Khaldoun Zoubi, a long-term partner of Foz, confirmed his associate had held talks with Syrian authorities but did not confirm if he had been in the country. 'Foz told them he is ready to cooperate with the new administration and provide all the support to the Syrian people and the new state,' Zoubi said from the gilded lobby of the Four Seasons hotel in central Damascus, which Foz's group majority owns. 'He is ready to do anything asked of him.' The two Syrian sources said Foz, who holds a Turkish citizenship, had left Damascus after the talks. Reuters could not ascertain Hamsho's whereabouts. The US has sanctioned Foz, Hamsho and others with a prominent economic role, including Yasser Ibrahim, Assad's most trusted adviser. Syrian analysts say around a dozen men make up the close ring of business barons tied to the former regime. HTS-appointed government officials consider all of them to be persons of interest. Syrian authorities have ordered companies and factories belonging or linked to the tycoons to keep working, under supervision of HTS authorities, while the committee investigates their various businesses. 'Our policy is to allow for their employees to continue working and supplying goods to the market while freezing their money movements now,' Trade Minister Hasan told Reuters in an interview early in January. 'It's a huge file. (Assad's business allies) have the economy of a state in their hands. You can't just tell them to leave,' he added, explaining the new government could not avoid engaging with the tycoons. Hamsho International Group is among those put under HTS supervision, according to the sources with direct knowledge. A Reuters visit in late January showed little work was being carried out at its modern multi-story headquarters in Damascus, where some offices had been looted in the wake of Assad's fall. Staff have been instructed to cooperate fully with the new Syrian administration, members of whom regularly visit the company seeking information, said one employee, who asked not to be identified by name. Some economists say the country's dire economic situation required major domestic corporations to continue to operate regardless of who they may be affiliated with. The UN says 90 percent of Syrians live below the poverty line. While basic goods shortages have eased after strict trade controls dissolved in the aftermath of Assad's fall, many Syrians still struggle to afford them. 'Syrian authorities need to be wary of a harsh crackdown on former regime cronies because this could create significant shortages (of goods),' said Karam Shaar, director of a Syria-focused economic consultancy bearing his name. Assad's rapid fall, culminating with his Dec. 8 escape to Russia, left many Syrian oligarchs with no time to dispose of or move their local assets that have since been frozen, giving Syria's new rulers strong leverage in dealing with the tycoons, according to two prominent businessmen and the government official.
