In a series of significant developments, Syria is navigating a complex path toward recovery following the fall of the Assad regime in December 2024. While the lifting of sanctions by the EU and the US promises economic relief and reconnection to the global financial system, the resurgence of ISIS and a deepening humanitarian crisis pose serious challenges.
EU and US Sanctions Relief: A Double-Edged Sword
The European Union lifted economic sanctions on Syria on May 20, 2025, aiming to bolster the nation’s recovery. EU foreign policy chief Kaja Kallas stated that this decision supports rebuilding a new, inclusive, and peaceful Syria. This move mirrors a similar announcement made by the United States the previous week. However, the EU has stipulated that individual sanctions may still be imposed on those found responsible for inciting ethnic tensions. Crucially, measures prohibiting the sale of weapons and equipment used for civilian repression remain firmly in place.
SWIFT Reactivation: Steps Toward Financial Reintegration
A key component of Syria’s recovery is the effort to reintegrate its banking system into the global financial network. Abdul Qader Hasriyeh, Governor of the Central Bank of Syria (CBS), announced on May 16, 2025, that the lifting of US sanctions would facilitate reconnecting Syria’s banking system to the SWIFT network. According to Hasriyeh, over 50 Arab and international banks have expressed interest in establishing branches and investing in Syria, even before the sanctions were officially lifted. This development signals potential economic revitalization but also highlights the need for robust financial oversight to prevent misuse.
ISIS Resurgence: A Threat to Stability
Adding to the instability, the Islamic State (IS) has demonstrated a worrying resurgence. On May 18, 2025, ISIS successfully targeted a security post in Mayadin with a car bomb, resulting in five deaths. This attack marks the first strike against the new Syrian government since the fall of the Assad regime and occurs amid a U.S. military drawdown in the region. The attack underscores the continued threat posed by extremist groups and the challenges in maintaining security and stability.
Humanitarian Crisis Deepens Amidst Progress
Despite the positive steps toward political and economic recovery, a dire humanitarian crisis persists. On May 22, 2025, senior UN humanitarian official Ramesh Rajasingham warned that over 16 million Syrians require aid, with half the population facing hunger. Since November, sectarian violence has displaced over 670,000 people, exacerbated by Israeli airstrikes and significant funding shortfalls for UN agencies. The humanitarian situation underscores the urgent need for coordinated international efforts to provide relief and support to the Syrian population.
Conclusion
Syria stands at a critical juncture. The easing of sanctions and efforts to revive its financial system offer hope for recovery and reintegration into the global community. However, the resurgence of ISIS and the ongoing humanitarian crisis highlight the significant challenges that remain. The international community must remain engaged, providing both economic support and humanitarian assistance to ensure a stable and peaceful future for Syria.