UK lifts restrictions on Syria's central bank and other entities in landmark move

The UK recently announced the lifting of sanctions on 24 Syrian entities, including the Central Bank of Syria. This landmark move could be a turning point for Syria's economic recovery. The UK has become the first country to unfreeze all assets of the Central Bank of Syria, signaling a potential shift in international policy.

In addition, entities previously sanctioned, such as Syrian Arab Airlines and the state-owned oil company, were also removed from the sanctions list on Thursday afternoon. A British government spokesperson stated that this action is intended to help the Syrian people rebuild their country and economy, including supporting a Syrian-led political transition. "We will continue to judge the interim Syrian authorities by their actions, not their words," the spokesperson added, emphasizing the importance of tangible progress.

The new Syrian government inherited a severe economic crisis from the Bashar al-Assad regime, which was overthrown in December. Government corruption, destructive conflict, and international sanctions have collectively led to the collapse of the Syrian economy under Assad's rule. United Nations data shows that nine out of ten Syrians live in poverty, highlighting the dire situation.

Syrian interim President Ahmed Shahla called on the UK and other countries on December 17 to lift all sanctions on Syria imposed during the Assad regime. He stated, "They should lift all restrictions imposed on both the abusers and the victims. The abusers are gone, and there is no room for negotiation on this issue," underscoring the need for immediate relief.

The UK's significant policy shift could bring new opportunities for Syria, provided that other countries follow suit. The lifting of sanctions by Western nations could help stabilize the Syrian economy and promote foreign investment. Currently, the Syrian government is led by Hayat Tahrir al-Sham (HTS), which remains designated as a terrorist organization in the UK and the US. While some Western countries have eased some sanctions, they still link the lifting of sanctions to political reforms.

The EU partially lifted restrictions on the Central Bank of Syria in February and suspended sanctions on the energy and transportation sectors. The US has also issued waivers on the ban on transactions with the Syrian government to facilitate humanitarian aid, but maintains sanctions. Therefore, as long as US sanctions remain in place, the practical impact of the UK's move will be limited. However, this policy could be a turning point in encouraging other European countries to further lift sanctions, creating momentum for broader change.

This is undoubtedly a bold decision by the UK's Labour government, and the move will be seen as the UK developing an independent Middle East policy distinct from the United States. Just days ago, Turkish Deputy Foreign Minister Nuh Yilmaz met with British Minister for the Middle East, Hamish Falconer, to discuss the future of Syria, including sanctions and economic development, indicating ongoing diplomatic efforts.

Chris Doyle, director of the Council for Arab-British Understanding, said: "This is a belated but very welcome step by the UK. The Syrian economy desperately needs a boost, and the removal or easing of sanctions is one of the key measures that can help achieve this." He added, "Getting Syrians back into productive work, running their businesses, and moving away from dependence on aid are all part of ensuring a successful transition away from decades of Assad regime rule, fostering self-sufficiency and stability."

Meanwhile, the government led by Hayat Tahrir al-Sham launched a helicopter attack on Assad's former stronghold of Latakia on Thursday, after militants loyal to Assad's elite forces killed security personnel. In the past few weeks, the government has launched a large-scale operation to try to clear Assad loyalists from its former strongholds. In southwestern Syria, the government also faces greater pressure, as Israel has occupied the UN buffer zone and now controls high ground overlooking Damascus, escalating regional tensions.

Israel is also trying to portray itself as the protector of Syria's Druze community in order to deepen its influence in Syria. Last week, Israeli Prime Minister Benjamin Netanyahu threatened military action to "defend" a suburb three kilometers southeast of Damascus, which is home to many Druze people, further complicating the situation and raising concerns about potential intervention.