Research details

The EU’s February 2025 sanctions exemptions ease restrictions on energy and transport, remove four banks from the asset freeze list, allow making funds and economic resources available to the Central Bank of Syria while keeping it listed, and authorize limited banking transactions for energy, transport, humanitarian, and reconstruction purposes. They also make the humanitarian exemption in place permanent and allow luxury goods exports for personal use. While these measures may provide short-term economic relief and support infrastructure rehabilitation, they lack mechanisms to reintegrate Syria into global financial markets. Financial institutions will likely remain wary due to compliance risks, US sanctions, and Syria’s Financial Action Task Force (FATF) being gray-listed. Their impact will largely hinge on whether the US follows suit, or if structured incentives encourage businesses and financial institutions to re-engage with Syria’s economy.

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