Trump admin. ties easing Syria sanctions to inclusive government: WSJ

By Al Mayadeen English
Source: The Wall Street Journal
24 Feb 2025 22:44

WSJ says major European banks and corporations may be reluctant to engage economically with Syria as long as US sanctions against the country remain in place.

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US President Donald Trump waits to welcome French President Emmanuel Macron to the White House in Washington, DC, on February 24, 2025 (AFP)

While 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 on the war-torn country, The Wall Street Journal (WSJ) reported on Monday.

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.

On Monday, the EU lifted sanctions on four state-owned Syrian banks and approved the transfer of funds to Syria’s central bank. Additionally, the EU has granted Syria’s national carrier, Syrian Arab Airlines, permission to resume flights to Europe.

In 2010, trade between the EU and Syria amounted to approximately $7.3 billion. Today, Syria’s entire economy is valued at around $29 billion. According to recent estimates by the UN Development Program, the war has caused $923 billion in physical destruction and economic losses.

European officials hope that easing sanctions will incentivize Syrians to return and contribute to the country’s reconstruction. More than one million Syrians fled to Europe during the war, which began in 2011.

Seeking to maintain influence over Syria’s leadership, EU officials have indicated that member states will gradually lift additional economic restrictions in the coming months. However, the EU has affirmed that it will uphold its arms embargo on Syria and maintain sanctions against senior officials in the Assad government.

Despite the EU’s actions, the Trump administration has kept US sanctions in place, a move that is expected to limit the impact of Europe’s decision.