Qatar delays funding for Syria public sector over US sanctions
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Qatar has postponed financial support for Syria’s planned public sector salary increases due to concerns over potential breaches of US sanctions.
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Syria's interim president Ahmad al-Sharaa, right, leaves the podium after speaking during Syria's national dialogue conference at the People’s Palace in Damascus, Syria, Tuesday Feb. 25, 2025 (AP)
Qatar has put on hold financial support for salary increases in Syria’s public sector due to concerns over potential violations of US sanctions, four sources told Reuters, dealing a rough blow to efforts aimed at stabilizing Syria’s war-torn economy.
The delay affects Qatar’s plan to help fund a 400% pay raise for public sector workers, which Syria’s interim finance minister announced last month. The increase, estimated to cost 1.65 trillion Syrian pounds ($130 million) per month, was expected to take effect in February, relying partly on regional aid.
While the previous US administration granted a six-month sanctions exemption on January 6 for transactions with Syrian governing institutions, Qatar remains uncertain if this covers the necessary payments via Syria’s central bank, the sources said.
Three of the sources noted that Qatar, a key US ally, is awaiting clarity on US President Donald Trump’s policy toward Damascus before proceeding.
Syria’s new rulers, led by interim President Ahmed al-Sharaa are now seeking to reassure foreign powers and attract aid to rebuild the state.
The Qatari Foreign Ministry and Syria’s finance ministry did not respond to requests for comment, nor did the US State Department, Treasury, or White House.
A US official confirmed that Doha had not started payments due to legal uncertainty. Another source stated that while Qatar had not begun covering public sector salaries, it sent out two shipments of liquefied petroleum gas to help ease Syria’s energy crisis.
Sanctions relief hinges on inclusive government
he Wall Street Journal (WSJ) reported on Monday that although the Biden administration had relaxed certain payment restrictions to facilitate aid delivery to Syria shortly before leaving office, the Trump administration has since blocked US moves to ease sanctions.
Trump officials have stated that they seek a more inclusive government in Damascus, rather than one dominated by Islamists, the report mentioned.
It highlighted that major European banks and corporations may be reluctant to engage economically with Syria as long as US sanctions remain in place.
However, according to the WSJ, European officials are confident that their measures will encourage some businesses and aid organizations to resume operations in Syria, even without US involvement.
The newspaper noted that the relaxation of sanctions will enable European companies to purchase Syrian oil and gas and invest in the country's electricity sector.
