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How Sanctions Relief Could Transform the Syrian Economy

2025-01-14 18:50:41.372000

Top diplomats from the Middle East and Europe convened in Riyadh on January 12, 2025, to discuss strategies for supporting Syria following the fall of Bashar al-Assad in December 2024 [269a52fd]. This meeting, hosted by Saudi Arabia, included representatives from Arab nations, Turkey, France, the EU, and the UN, reflecting a collaborative effort to address the future of Syria [269a52fd]. Saudi Arabia, which severed ties with Assad in 2012, is now looking to increase its influence in the region by negotiating support for Syria's recovery [269a52fd].

During the talks, Syria's new leader, Ahmed al-Sharaa, represented by Foreign Minister Asaad al-Shaibani, expressed the need for sanctions relief to facilitate the country's recovery [269a52fd]. Germany's Foreign Minister Annalena Baerbock emphasized that sanctions against Syrian officials responsible for war crimes must remain in place, advocating for a 'smart approach' to provide relief to the Syrian population [2094ef93]. Germany announced an additional €50 million (approximately $51.2 million) for humanitarian aid, focusing on food, emergency shelters, and medical care [2094ef93].

On January 6, 2025, the U.S. eased some sanctions for six months, allowing certain transactions with the Syrian government, which has been viewed as a potential boost for the struggling Syrian economy [b5a34182]. Economic researcher Zaki Mahshi described this period as a testing ground for U.S. policy, with the EU and UK possibly following suit depending on the actions of the new Syrian administration [b5a34182]. The U.S. Treasury's Executive Order No. 24 allows essential services to continue, although financial transfers to prohibited individuals remain restricted [b5a34182].

The discussions in Riyadh follow previous meetings held in Jordan, which aimed to promote a Syrian-led transition and ensure respect for human rights within the country [269a52fd]. Turkey's Foreign Minister Hakan Fidan emphasized the need for balance in international demands and pledged support for the new Syrian government [2094ef93]. The U.S. highlighted the importance of regional stability and the need to combat terrorism as part of the broader strategy for Syria's future [269a52fd]. This diplomatic engagement marks a significant shift in the approach of regional and international powers towards Syria, focusing on recovery and rebuilding in the aftermath of a decade-long conflict [269a52fd].

Despite the easing of sanctions, the UN reports that 90% of Syrians live below the poverty line, underscoring the dire humanitarian situation that persists [b5a34182]. The international community's response will be crucial in determining the trajectory of Syria's recovery and the well-being of its citizens in the coming months [b5a34182].

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