Western sanctions, especially those imposed by the United States, remain one of the main barriers to Syria’s reconstruction, economic recovery, and reintegration into the global financial system, a prerequisite for attracting foreign investment. Repeated calls from Arab, regional, and international actors, including UN Secretary-General António Guterres and his special envoy to Syria, Geir Pedersen, have urged the lifting of these sanctions to achieve economic, security, and political stability in the country.
Just days ago, Abdallah Al-Dardari, Assistant Secretary-General of the United Nations Development Programme (UNDP), revealed that the UNDP had secured a sanctions exemption from the U.S. Treasury Department to raise $50 million for the repair of the Deir Ali power plant south of Damascus. This came on the heels of a series of U.S. exemptions granted to specific sectors in Syria, seen by many as a potential alternative strategy to lifting sanctions outright, a process that may take years.
In an interview with Reuters, Dardari said the United Nations plans to provide $1.3 billion in aid to Syria over the next three years to support reconstruction and economic revitalization. This announcement coincided with a post on the UNDP’s Facebook page announcing a $2.9 million agreement with four Syrian banks, Ibda’a Bank, First MicroFinance Bank, Bemo Saudi Fransi Bank, and the National Microfinance Bank. The agreement aims to implement a pilot project offering subsidized interest rates, a first-of-its-kind initiative designed to enable over 1,600 beneficiaries to access financing.
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The Importance of Sanctions Exemptions
Despite their value to the Syrian people in terms of improving livelihoods and essential services, these U.S. sanctions exemptions raise concerns that they might serve as a long-term alternative to full sanctions relief, an essential requirement for Syria’s economic recovery, reconstruction, and attracting foreign investment, all of which are hindered by the existing sanctions.
Syrian journalist Firas Allawi, based in France, explains that “U.S. exemptions from certain sanctions on Syria are not new. They began after the 2023 earthquake and have largely focused on two sectors: healthcare and infrastructure services.” He adds, “The new exemptions and support for the transitional government are intended to keep it functional on the ground and to facilitate dialogue with the U.S. administration. Hardening the sanctions would sever this dialogue and potentially push Syria toward alternative alliances, such as with Russia or the EU.”
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Allawi points out that “these U.S. exemptions do not alter Syria’s economic reality, nor do they establish a sustainable economic foundation. Rather, they are akin to cosmetic surgery, alleviating suffering without addressing root problems.” He emphasizes that Washington has specific conditions it wants fulfilled, conditions tied to both its own interests and those of its regional allies. “Only if the transitional government responds positively might sanctions be lifted, possibly after recognition of a new government, which is currently lacking,” he notes.
Can Exemptions Alter Economic Realities?
Syrian journalist and political analyst Samer Al-Khelewi stresses that “the U.S. exemptions are not a replacement for lifting sanctions; they are minimal and will not meaningfully change the dire situation in Syria.” He adds that ongoing sanctions directly impact international actors eager to help with reconstruction, particularly the European Union, which, despite lifting some restrictions, remains largely unable to offer effective assistance.
Khalawi argues that “sanctions were imposed on the Assad regime and should only be lifted with its fall, particularly the Caesar Act, the Syria Accountability Act, and the Captagon Act. However, the U.S. uses these sanctions to advance its own political interests.” Speaking to +963, he contends that “the Caesar Act, for instance, was created as a tool for Washington to pressure other countries into aligning with its policies.”
government’s Minister of Finance, Mohammad Yasar Bernia, and Central Bank Governor, Abdelkader Husrieh, to Washington to attend the World Bank and IMF meetings held Tuesday. Their visit reflects ongoing efforts to reintegrate Syria into the global financial system and to campaign for the lifting of sanctions.
The Complexity of the Sanctions Issue
Addressing whether these exemptions signal a broader easing of sanctions, historian and international relations researcher Ahmed Dahshan, based in Cairo, asserts that “partial lifting is unlikely to lead to full sanctions relief. The exemptions are limited to essential needs, such as the Deir Ali power plant, medications, and food supplies, meant to emphasize that sanctions are not targeted at the Syrian people.”
Speaking to +963, he explains that fully lifting sanctions is a complex matter requiring significant steps. “The core issue in Syria is not only American sanctions but also the country’s dysfunctional social contract. The narrative that a particular group has been oppressed for decades and must now reclaim dominance is not a viable basis for statehood. A new, inclusive contract representing Syria’s diverse social fabric is essential for sustainable coexistence,” he argues.
Khalawi adds that the U.S. may present new demands to the Syrian government even if current conditions are met, as there are no clear signs of serious intent to lift the sanctions. “These sanctions, which have deeply affected Syrian livelihoods, should not be used as tools of coercion,” he warns.
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On Tuesday, U.S. Senator Jeanne Shaheen announced that she had urged the American administration to ease sanctions on Syria in the short term. “I’ve sent a letter to the Secretaries of State and Treasury urging the removal of barriers to cooperation with the Syrian government,” she said. “I’m calling for an expansion of the temporary exemptions. Loosening sanctions can prevent instability in Syria and create the conditions to promote American interests,” according to a report by Al Jazeera.
Notably, in early January, the U.S. Treasury Department issued a general license allowing transactions with Syrian government institutions, including certain energy-related and personal financial transfers, aimed at facilitating humanitarian aid. This followed similar exemptions under the Trump administration in February of the previous year, covering some humanitarian, energy, and food sectors.
