Lifting Sanctions on Syria

Lifting Sanctions on Syria

By Lara Kajs
Thinking Out Loud

More than a decade after the start of the Syrian civil war, the international sanctions regime that isolated Damascus is beginning to shift. Recent decisions by the United States, the European Union, and regional governments to ease sanctions signal a cautious attempt to stabilize Syria and support economic recovery. Whether this policy change leads to genuine reform—or reshapes geopolitical alliances—remains an open question.

The lifting of sanctions on Syria marks a significant geopolitical shift in the Middle East and opens the possibility of a new phase in the country’s long and difficult recovery. For more than a decade, Syria remained economically isolated under a web of sanctions imposed by the United States, the European Union, and several regional governments. These restrictions were largely directed at the government of Bashar al-Assad and its conduct during the Syrian civil war.

Sanctions targeted key sectors of the Syrian economy, including banking, energy, trade, and transportation. Their stated goal was to pressure the Syrian government to alter its conduct, particularly in response to documented human rights abuses and widespread civilian suffering during the conflict.

Over time, however, the combination of war and economic isolation devastated the Syrian economy. Inflation soared, essential services deteriorated, and much of the country’s infrastructure—once among the most developed in the region—was reduced to rubble. Millions of Syrians were pushed into poverty while public institutions struggled to function.

Today, the humanitarian crisis in Syria remains severe. More than 90 percent of Syrians are estimated to live below the poverty line, with millions facing food insecurity. Approximately 16.5 million people require humanitarian assistance. Critics of sanctions argue that economic restrictions ultimately inflicted disproportionate harm on civilians while failing to achieve their primary political objective: removing Assad from power. Others contend that sanctions pushed Syria further into the geopolitical orbit of Russia and Iran.

For the Syrian people, the real test of sanctions relief will not be diplomatic announcements, but whether daily life begins to improve.”

Shifting Alliances

The gradual easing of sanctions reflects broader shifts in regional politics. The Middle East has experienced significant diplomatic realignments in recent years, including the Saudi-Iran détente and the continued evolution of the Abraham Accords. Within this changing landscape, several regional governments have begun exploring ways to stabilize Syria as part of broader security and economic arrangements.

Syria’s readmission to the Arab League in 2023 marked an important step toward diplomatic normalization. Arab governments—including the United Arab Emirates and Saudi Arabia—have cautiously reengaged with Syrian leadership and signaled a willingness to reopen political and economic channels.

Initial steps toward easing restrictions came primarily from regional actors. Several Arab airlines resumed flights to Damascus, while discussions began on reconnecting Syria to regional energy networks through electricity and gas pipeline projects. Investment conversations have also emerged around reconstruction and infrastructure development, particularly in areas less affected by direct combat.

After more than thirteen years of conflict and displacement, Syria’s physical and economic landscape remains deeply scarred. Entire towns remain uninhabitable. Schools, hospitals, water systems, roads, and electrical grids require extensive rebuilding. Public services operate at minimal capacity while the national economy continues to struggle.

The United States and Sanctions Policy

A major turning point came when the United States announced a limited lifting of sanctions on Syria, signaling a shift in policy toward cautious economic engagement. The change is part of a broader effort to dismantle elements of the sanctions framework imposed during the Assad era while still maintaining targeted measures against individuals responsible for serious abuses.

On 23 May 2025, the U.S. Treasury Department issued Syria General License 25 (GL25), which significantly eased restrictions on certain financial transactions involving Syria. The license allows U.S. persons to engage in limited dealings with Syrian institutions, including the Central Bank and certain state enterprises, particularly when connected to humanitarian assistance or infrastructure development.

At the same time, the U.S. State Department issued a temporary waiver under the Caesar Syria Civilian Protection Act for 180 days. This waiver allows certain non-U.S. actors to engage in activities that would otherwise be restricted under the Syrian Sanctions Regulations, provided those transactions do not involve designated individuals or entities.

Importantly, sanctions remain in place against key figures associated with the former regime, including Bashar al-Assad, as well as individuals linked to terrorism, war crimes, and other serious violations of international law.

U.S. officials have emphasized that the easing of sanctions is conditional. Washington has outlined several expectations for Syria’s leadership moving forward. These include taking meaningful action against terrorist groups operating within Syrian territory, protecting the rights and safety of religious and ethnic minorities, limiting foreign interference in Syrian affairs, and contributing to broader regional stability.

U.S. Secretary of State Marco Rubio has stated that continued relief will depend on whether Syrian authorities demonstrate measurable progress toward these objectives, including cooperation in counterterrorism efforts against groups such as ISIS.

International Coordination

The United States is not acting alone in this policy shift. The European Union has also begun easing certain sanctions, aligning its approach with Washington’s recalibrated strategy. Britain and Canada have similarly lifted sanctions on selected Syrian entities while expanding humanitarian support.

Taken together, these steps reflect a growing international consensus that Syria’s prolonged economic isolation may no longer serve its original policy purpose. Instead, policymakers appear increasingly focused on facilitating reconstruction while maintaining targeted accountability measures.

Still, international engagement with Syria remains cautious. Many governments remain wary of legitimizing leadership structures that emerged from years of conflict and repression.

The Path to Recovery

Despite the easing of sanctions, Syria faces enormous challenges. Rebuilding a country devastated by more than a decade of war will require sustained international investment, coordinated donor assistance, and long-term economic reforms.

Infrastructure reconstruction alone will demand billions of dollars in funding. Without consistent financial support and careful governance, recovery risks being uneven and fragile.

The removal of sanctions may signal a shift from confrontation toward cautious engagement in international policy. Yet the long-term success of this strategy will depend on how both Syrian leadership and the international community navigate the delicate balance between reconstruction, accountability, and political reform.

If sanctions relief becomes tied to external political demands that bear little connection to the welfare of the Syrian population, economic policy risks becoming another form of geopolitical leverage rather than a tool for recovery.

For the Syrian people—many of whom have endured more than a decade of displacement, violence, and economic hardship—the real measure of success will not be diplomatic announcements but tangible improvements in daily life.

Whether this diplomatic thaw leads to lasting stability remains uncertain. But after years of devastation, the possibility of reconstruction and renewed engagement offers at least a fragile opening toward a different future.

Photo Credit: Babunnur Refugee Camp in Aleppo Syria (4) by IHH Insani Yadim. Licensed under CC BY NC ND 2.0,

Published 30 May 2025

About Thinking Out Loud
Thinking Out Loud is a commentary series by Lara Kajs examining international law, humanitarian crises, and the prevention of mass atrocities. Drawing on field experience in conflict and displacement settings, the column explores the legal and policy challenges that shape contemporary conflicts

Lara Kajs is the founder and executive director of The Genocide Report, a Washington, DC-based educational nonprofit focused on atrocity prevention and international law. She is the author of several field-based books on conflict, displacement, humanitarian crises, and international humanitarian law, drawing on extensive research and field experience in Yemen, Syria, and Afghanistan. Her writing and public speaking focus on atrocity crimes, forced displacement, the protection of civilians, and the legal frameworks governing armed conflict.