1. U.S. Treasury Issues General License 25, Easing Sanctions on Syria
On May 23, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued General License 25, authorizing transactions previously prohibited under the Syrian Sanctions Regulations. This move effectively suspends most U.S. economic sanctions on Syria, particularly those issued under Executive Order 13582, allowing transactions across various sectors, including energy and banking. The easing of sanctions aims to support Syria’s economic recovery and reintegration into the global financial system.
2. European Union Lifts Economic Sanctions on Syria
On May 20, the European Union formally lifted economic sanctions on Syria, enacting a political decision announced earlier in the month. The Council removed 24 entities from its sanctions list, including the Central Bank of Syria and companies in key sectors such as oil production, refining, and telecommunications. This move aims to support Syria’s reconstruction and political transition, while maintaining sanctions related to security and human rights concerns.
3. Syria Signs $7 Billion Energy Investment Deal
On May 29, Syria signed a memorandum of understanding with an international consortium led by Qatar’s UCC Holding for a $7 billion investment in its electricity sector. The project includes the construction of four combined-cycle gas turbine power plants with a total output of 4,000 megawatts, as well as a 1,000-megawatt solar power plant in southern Syria. This initiative aims to revitalize Syria’s power infrastructure, which currently generates only 1.6 gigawatts compared to 9.5 GW before 2011.
4. Russia Increases Oil Exports to Support Syrian Energy Needs
Russia has boosted its exports of Arctic oil to Syria to support the country’s refinery operations, following diminished access to Iranian oil. In 2025, Russia has shipped around 350,000 metric tons (approximately 2.6 million barrels) of oil to Syria using sanctioned tankers. The resumption of operations at Syria’s Baniyas refinery in April followed these new oil deliveries, although technical repairs are ongoing.
5. European Union Boosts Humanitarian Aid to Syria
On May 21, the European Commission allocated an additional €20 million in humanitarian aid funding, bringing the total of humanitarian aid to Syria for 2025 to €202.5 million. This will support basic needs, such as food and health, particularly in the precarious situation in North-East Syria.
6. Syrian Finance Minister Invites Foreign Investment
Following the U.S. decision to lift sanctions, Syrian Finance Minister Yisr Barnieh extended an invitation to global investors to participate in Syria’s reconstruction. Barnieh emphasized the country’s potential across various sectors, including agriculture, oil, tourism, infrastructure, and transportation. He highlighted the government’s plans to overhaul tax, customs, and banking systems to create a more conducive environment for foreign investment.