On 24 April 2025, the UK Government lifted sanctions on specific sectors in Syria, including the financial and energy sector. Sanctions were lifted on 12 entities, including the Syrian Ministry of Defence, Ministry of Interior and media companies. This move was made to help facilitate the rebuilding of Syria following the fall of former President Bashar al-Assad.
Why were UK sanctions on Syrian entities put in place?
There has been a civil war in Syria since 2011, following an uprising that included pro-democracy rallies and protests that were put down by force by the Assad regime. It is estimated that over 300,000 civilians lost their lives during the civil war and millions of people became refuges after fleeing the country.
The Syria (Sanctions) (EU Exit) Regulations 2019 were put in place to ensure UK sanctions against Syria remained effective following Britain’s exit from the European Union (EU). Sanctions were aimed at encouraging the Syrian government to stop taking actions that repressed the Syrian people and act in good faith during negotiations to end the civil war.
Asset freezes were put in place on those identified as being responsible for repressing the Syrian people and supporting or enabling the Assad regime.
The current list of designated persons includes advisors to former President Assad, former government ministers, and army personnel.
Why are some sanctions being lifted?
Taking world leaders and the Syrian people by surprise, the Assad regime collapsed in December 2024. Assad fled and is believed to be in Russia.
Foreign Secretary David Lammy met with government representatives from Arab nations in January 2025 to discuss the future of Syria following the fall of the regime. He told reporters:
“The international community must come together to stand behind the people of Syria as they build a democratic future and a diverse and modern country.
We are united with our key partners from the region and beyond in ensuring the protection of civilians, access to aid and security within Syria and the wider region.
Syrians deserve a bright and prosperous future – we are here today to support that.”
On 6th March 2025, the British government unfroze the assets of Syria’s central bank and 23 other entities including banks and oil companies.
The government has also pledged £160 million to support the Syrian recovery.
Why is Syrian stability and recovery important to the UK?
Given that the new Syrian President, Ahmed Hussein al-Sharaa has former links with Al-Qaeda and was a militant leader, it is natural to wonder why the UK and other Western countries are so keen to lift sanctions so investment can flow in to Syria. Although the UK government’s press release states the decision is to benefit the Syrian people, which is true, there are major geo-political reasons for western countries to secure Syria.
Russia was a key ally of the Assad regime. According to financial journalist and author, Simon Watkins, Syria is vital to Russia’s geopolitical strategy due to it being the biggest country on the western side of the Shia Crescent of Power, which acts as its counter point to the US sphere of influence in Saudi Arabia and Israel. It also has a long Mediterranean coastline in which Russia can transport oil and gas products. For these reasons and others, it is in the US, the UK’s and the EU’s interests to rapidly secure Syria and its energy infrastructure. This cannot be done if sanctions hamper investment. Notably, the EU suspended Syria sanctions in February and removed five entities (Industrial Bank, Popular Credit Bank, Saving Bank, Agricultural Cooperative Bank, and Syrian Arab Airlines) from the list of those subject to the freezing of funds and economic resources. Changes were also made to facilitate making funds and financial products available to the Syrian Central Bank,
The future of Syria sanctions
At a UN Security Council meeting on Syria, Jess Jambert-Gray, UK Deputy Political Coordinator made clear that the UK is committed to helping Syria rebuild and supports the new regime.
Trading with Syria post April 2025
The lifting of sanctions against specific Syrian entities will affect many UK, Central Asian, and Chinese companies with interests in the Middle East region. Although some sanctions have been lifted, those imposed on members of the former regime and those involved in the illicit trade in captagon will remain in place. The UK government has also made clear it will amend its current policy and impose new sanctions if the situation in the country falls back into repression and corruption.
If you wish to trade with Syria, it is crucial you seek advice on the current sanctions situation to ensure you do not breach UK sanction policies. Our dual-qualified, multi-lingual lawyers can provide expert legal advice and representation if you have any questions regarding the lifting of sanctions against Syrian entities and/or investing in Syria.
To make an appointment with one of our lawyers, please call +44 (0) 203972 8469 or email us at mail@eldwicklaw.com.
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