After a long period of tough economic restrictions, there are some positive changes in Syria’s geopolitical and economic landscape. Starting mid-2025, the first major shifts in Western policy since the Syrian civil war began in 2011, the European Union and U.S. governments made the historic decision to lift all economic sanctions against Syria. Although the reopening of trade and reconstruction efforts to Syria’s war-damaged economy are underway, there are still questions regarding the pace of complete reintegration to the world economy as well as compliance and institutional readiness for trade.
The European Union’s Decision
This change followed a European Union Council meeting on May 20, 2025, which lifted all economic sanctions on Syria. This follows a political agreement made previously and seeks to support the Syrian population. The official Council Note emphasizes this by stating, “Syria, and the Syrian people, deserve to reconnect and reconstruct a new inclusive, pluralistic, and peaceful Syria.” With this approach, the Council also lifted sanctions on 24 entities which included primary financial institutions such as the Central Bank of Syria, as well as firms involved in critical oil production, oil refining, cotton, and telecommunications.
The U.S. Lifted Sanctions
This signaled a dramatic change in U.S. relations with Syria. The change of relations to be most impactful with new President Trump, announcing the nullification of all sanctions on Syria saying, “I will order the cessation of sanctions against Syria in order to give them a chance at greatness” at the Saudi-U.S. Investment Forum in Riyadh on May 12, 2025. After Washington’s unilateral move, key allies also began to rethink their positions. Following the U.S. lead, the European Union also moved quickly. After a decade, the overlapping sanctions on Syria’s international finance, trade, and investment are finally being dismantled.
A Changed Legal Landscape for Businesses
These changes mean that the decade-long regime of overlapping sanctions that restricted Syria’s access to global finance, trade, and investment is coming to an end. Some restrictions will remain, particularly the compliance obligations regarding terrorism, security, and human rights abuses, which means that these restrictions will lead to reduced access to global finance, trade, and investment.
Syria’s Isolation
Syria’s exclusion from global trade and finance for the last decade made it impossible for the country to trade, and to make money. Correspondent banks were severed, and most formal businesses had to rely on hawala networks for trade settlements. The lifting of sanctions promises to reconnect Syria’s financial institutions, most notably the Central Bank of Syria, with global payment networks. However, rebuilding trust and technical interoperability will require substantial institutional reform and regulatory transparency.
Disrupted Supply Chains
Trade restrictions along with logistical barriers like denied insurance and shipping services fragmented Syria’s supply chains. The new policy landscape could allow access to imports that are still critical to the country’s recovery, like industrial equipment and telecommunication materials. However, trading with Syria will take time. Many multinational corporations that left will need to re-evaluate the country’s political climate, reliability of infrastructure, and overall market potential before re-entering.
Emerging Opportunities and Continuing Risks
The most likely sectors to benefit from the lifting of sanctions include:
- Energy and natural resources, especially oil and gas extraction and refining.
- Agriculture and textiles, specifically cotton exports.
- Telecommunications and media, which could see new foreign partnerships.
- The banking and finance sector, as regional and global banks will be able to restore their operations.
However, the reentry of international investors will depend on the establishment of clear legal guarantees, anti-corruption safeguards, and a predictable regulatory environment.
