EU ministers agree to lift energy curbs on Syria under sanctions roadmap

EU foreign ministers have agreed a political roadmap to start easing sanctions on Syria which initially includes the lifting of curbs on the country's energy sector, the trade bloc's foreign policy chief Kaja Kallas said Jan. 27.

"We reached the political agreement to begin easing sanctions on Syria. This could give a boost to the Syrian economy and help the country get back on its feet," Kallas said. "While we aim to move fast...we are also ready to reverse the course if the situation worsens."

"We have grouped the sanctions and will start with the sanctions that most hinder the country....energy is there," she said, adding that the agreed roadmap still requires technical agreements on easing specific sanctions.

The EU, along with the US, began sanctioning Syria's Bashar al-Assad regime in 2011. Sanctions were slapped on individuals, businesses, and government entities, including the oil sector, but the rise of a new government in Damascus has prompted a reevaluation of those policies.

The 27-member bloc banned the purchase, import and transport of Syrian crude oil and refined petroleum products. It prohibits European companies from providing direct and indirect funds, key equipment and technical assistance.

Companies in the EU also cannot construct new electricity plants in Syria, and acquisitions, joint ventures, loans, credits and technical assistance are barred. Under Assad, Syria was heavily reliant on oil imports, primarily from Iran, to satisfy its domestic consumption needs, which have decreased to 163,000 b/d in 2024 from 305,000 b/d in 2010.

Oil sector

The US has issued a six-month waiver while keeping sanctions, and its leverage over the new government, intact. Hayat Tahrir al-Sham, or HTS, who now governs over Syria has historic ties with Al Qaeda, cutting them in 2016.

Advocates have said that lifting sanctions is crucial to begin rebuilding and point to the oil sector as a key pillar for reconstruction that could cost between $250 billion to $400 billion.

Forced to shutter operations in Syria as a result of UK sanctions, UK-based oil company Gulfsands has a re-entry strategy already in place, should UK sanctions on Syria be lifted.

Before the onset of the civil war in 2011, Syria pumped around 380,000-400,000 b/d of crude -- enough to meet its domestic consumption and supply some barrels to the international market. It also produced 316 MMcf/d of natural gas, according to US Energy Information Administration data from 2015.

However, Syria's oil and gas fields and infrastructure have been badly damaged and neglected, and crude production now stands between 80,000-100,000 b/d, according to various estimates. The loss of output had made Syria highly reliant on supplies from Iran, which had backed former dictator Bashar al-Assad.