EU Weighs Suspending Sanctions on Syria’s Oil Industry, Banks

The European Union is discussing a deal to partially suspend several sanctions on Syria’s energy industry, including scrapping bans on importing crude from the country and on exporting technologies to the oil and gas industry.

An agreement would potentially also end restrictions on financing exploring or refining oil, and the construction of new power plants. Other measures eyed by the bloc include removing several banks from the sanctions list, and partially lifting some restrictions previously imposed on Syria’s central bank to allow it to make funds available, according to people familiar with the matter.

Asset freezes in the EU tied to the central bank would likely stay in place, said the people, who spoke on condition of anonymity to discuss private deliberations.

EU foreign ministers agreed last month on a road map to gradually ease restrictions on Syria after the toppling of Bashar Al-Assad, its longtime president and ally of Russia and Iran. The easing of restrictions is conditional on reforms such as the inclusion of minorities, and the ministers agreed to implement the measures in a way that would be reversible if the Syrian government doesn’t meet those terms.

Member states have yet to agree how that snapback and review mechanism would work, the people said. Some EU capitals want to essentially bake a veto into any review once it’s triggered, the people added. That plan and the measures themselves would move to a legal review once agreed, said the people. The proposed measures could change before that happens and the plans are still under discussion, one of the people said.

Lifting sanctions would support Syria in its fragile transition under new President Ahmed Al-Sharaa, the Islamist rebel leader that helped oust Assad late last year. It would enable millions of displaced people to return home, many of whom took refuge in Europe. It would also ease the flow of humanitarian aid and encourage the protection of women and ethnic minorities.

The bloc has been stepping up efforts to build relations with Syria’s new leaders, while also seeking that they curtail the influence of Russia, a major ally of the ousted president.

Some EU nations want the shutdown of two Russian military bases in Syria to be included as one of the conditions to easing sanctions. Moscow is in talks with Syrian leaders to retain the facilities and is struggling to reach a deal.

Russia has indicated it’s willing to help rebuild the war-shattered nation if it can preserve its bases: a port that is its only maritime hub in the Mediterranean and an airbase that’s a key resupply point for Moscow’s activities in Africa.

Among the EU’s other proposed measures are scrapping bans on banknotes and jet fuel exports, as well as easing some restrictions on airlines and airport access. The proposals also include several exemptions to existing sanctions, such as those relating to opening bank accounts in Syria.

Before Syria’s civil war erupted in 2011, it was pumping almost 400,000 barrels a day of crude. Production has since slumped and many fields are in the hands of Kurdish forces rather than the central government.

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