In May 2025, the European Union (EU) announced its decision to lift economic sanctions on Syria, which had been in place for nearly fourteen years. This policy change was aimed at supporting the country’s reconstruction efforts following the ousting of the Bashar al-Assad regime in December 2024. EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, stated that the purpose of the decision was to “help the Syrian people build a new, inclusive and peaceful country.”
Before analyzing the latest developments, it is useful to revisit the recent history of the EU’s sanctions policy towards Syria. In 2011, when the Syrian civil war erupted, the EU imposed its first set of economic sanctions in response to grave human rights violations and attacks on civilians by regime forces and affiliated militias.[1] These measures directly targeted key sectors of the Syrian economy in an effort to cut off the regime’s financial resources. Sanctions included restrictions on oil and gas exports and imports, bans on investment and financing of Syria’s energy infrastructure, and limitations on aviation, maritime, and land transport sectors. Direct flights from EU countries to Syria were suspended, and Syrian officials were prohibited from using European airports.
In addition, the EU froze the assets of high-level Syrian officials and restricted financial transactions between EU institutions and Syrian entities. Travel bans were imposed on Assad, his inner circle, and their families and business associates. The primary goal of these sanctions was to isolate the regime internationally and pressure it to halt violence against civilians and implement political reforms. The EU also aimed to increase the economic cost of war by inflicting direct financial damage on the regime.
However, the sanctions also produced unintended consequences. As the conflict deepened, the Syrian economy transformed into a war economy. The regime sought alternative sources of income through informal and illicit channels. Civilians bore the brunt of the economic collapse, with access to basic goods becoming more difficult and living standards plummeting. December 2024 marked a turning point. After over a decade of war and increasing domestic and international pressure, the Assad regime collapsed. This pivotal event triggered a political and strategic realignment both within Syria and in the broader international system.
In the aftermath, a transitional government was established to restore political stability. Led by Ahmed al-Sharaa, this administration included representatives from various ethnic and sectarian groups, aiming for inclusivity and reconciliation. It initiated dialogue with the international community, advocating for democratic governance, human rights, and the rule of law. One of its first acts was to introduce political reform packages, draft a transitional constitution, release political prisoners, and invite international observers to monitor free elections. These steps were crucial for gaining international legitimacy and support.
The EU adopted a cautious but supportive stance towards the transition process. Rather than lifting all sanctions at once, the EU implemented a “conditional engagement” policy. Under this approach, certain sanctions were suspended in February 2025 in exchange for concrete reform steps aligned with international norms. To ensure accountability, the EU established mechanisms involving field reports, independent observers, and partnerships with civil society organizations. This demonstrated a long-term EU strategy to support Syria’s democratic transformation and reconstruction.
Simultaneously, the United States took a parallel step by easing some of its sanctions on Syria. This move reflected Washington’s strategic recalibration in response to evolving geopolitical and humanitarian dynamics. The Caesar Syria Civilian Protection Act, enacted in 2019, had imposed some of the harshest sanctions against the Assad regime and its affiliates. However, in May 2025, the U.S. Treasury Department issued a “General License” partially reopening access to Syria’s financial system.[2] This license permitted transactions necessary for humanitarian relief and basic economic needs, and authorized some private sector operations. Certain Caesar-related restrictions were temporarily lifted to prevent further deterioration of the humanitarian crisis and to facilitate Syria’s economic recovery.
The U.S. decision was motivated not only by humanitarian considerations but also by broader geopolitical calculations. Chief among these was the aim of balancing the growing influence of Russia and Iran in post-Assad Syria. By fostering ties with the new government, the U.S. sought to encourage Western engagement and counter rival powers. A recovering Syrian economy is seen as essential for easing the refugee crisis and improving security in neighboring countries. Amid rising Chinese involvement in Syria’s reconstruction, the U.S. is softening its sanctions regime to retain influence in this strategically vital context.
Ultimately, the EU’s full lifting of sanctions marks a paradigm shift in the international community’s approach to the Syrian crisis. However, the stability of this new phase will depend on the transitional government’s ability to manage internal dynamics and the alignment of external actors on the ground. The post-Assad era will also redefine the roles and strategies of regional and global powers in shaping Syria’s future.
[1] “Syria”, Consilium, https://www.consilium.europa.eu/en/policies/syria/, (Accessed: 24 May 2025).
[2] “Treasury Issues Immediate Sanctions Relief for Syria”, U.S. Department of the Treasury, https://home.treasury.gov/news/press-releases/sb0148, (Accessed: 24 May 2025).
