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EU Reaches Agreement to Lift Economic Sanctions on Syria, Kallas Says

EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas arrives at the EU Foreign Affairs Council in the EU Council in Brussels, Belgium, 20 May 2025. (EPA)
EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas arrives at the EU Foreign Affairs Council in the EU Council in Brussels, Belgium, 20 May 2025. (EPA)
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EU Reaches Agreement to Lift Economic Sanctions on Syria, Kallas Says

EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas arrives at the EU Foreign Affairs Council in the EU Council in Brussels, Belgium, 20 May 2025. (EPA)
EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas arrives at the EU Foreign Affairs Council in the EU Council in Brussels, Belgium, 20 May 2025. (EPA)

EU foreign ministers on Tuesday agreed to lift economic sanctions on Syria, the bloc's foreign policy chief Kaja Kallas said.  

"We want to help the Syrian people rebuild a new, inclusive and peaceful Syria," Kallas said in a post on social media platform X following discussions with ministers in Brussels.  

The European Union's policy shift comes after President Donald Trump said last week he would order the lifting of US sanctions on Syria.  

"The EU has always stood by Syrians throughout the last 14 years - and will keep doing so," Kallas said.  

The bloc has already eased sanctions related to energy, transport and reconstruction, as well as associated financial transactions, but some capitals have argued that the measures were insufficient to help support Syria's political transition and economic recovery.  

"The European Union wants to make a fresh start with Syria... but we also expect an inclusive policy within the country that includes all population groups and religious groups," Germany's foreign minister Johann Wadephul said in a written statement.  

"It is important to us that a united Syria can thus take its future into its own hands," he added.  

The bloc has already eased sanctions related to energy, transport and reconstruction, as well as associated financial transactions, but some capitals have argued that the measures were insufficient to help support Syria's political transition and economic recovery.  

Syria’s foreign minister said that the lifting of sanctions shows an "international will" to support his country.  

In a press conference in Damascus alongside his Jordanian counterpart, Asaad Al-Shaibani said that "lifting sanctions expresses the regional and international will to support Syria," adding that "the Syrian people today have a very important and historic opportunity to rebuild their country."  

The country’s new rulers have been clamoring for relief from the crushing international punishment imposed after Assad’s crackdown on opponents spiraled into civil war.  

The latest move from the EU comes after it took a first step in February of suspending some sanctions on key Syrian economic sectors.  

Officials said those measures could be reimposed if Syria’s new leaders break promises to respect the rights of minorities and move toward democracy.

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Iraq Braces for Economic Fallout from Heavy Reliance on Iran amid Escalating Conflict

An Iraqi man bakes traditional bread at a bakery in Baghdad (EPA). 
An Iraqi man bakes traditional bread at a bakery in Baghdad (EPA). 
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Iraq Braces for Economic Fallout from Heavy Reliance on Iran amid Escalating Conflict

An Iraqi man bakes traditional bread at a bakery in Baghdad (EPA). 
An Iraqi man bakes traditional bread at a bakery in Baghdad (EPA). 

As tensions escalate between Iran and Israel, Iraq is nervously eyeing the potential fallout from a conflict that could have deep and lasting consequences for the country.

While Iraqi authorities and political parties maintain a publicly cautious and reserved stance, behind closed doors, concerns are mounting over what many see as Iraq’s overreliance on Iran in critical sectors such as energy and trade.

A political source speaking to Asharq Al-Awsat revealed that, although officials are holding back from public commentary, there is a growing consensus among political actors that Iraq could face significant disruption regardless of how the conflict unfolds. “There’s an unspoken recognition that many things will change after this war,” the source said.

Already, early signs of strain are surfacing. Iraq’s Ministry of Trade unveiled a new contingency plan this week to safeguard food security amid fears of disrupted supply chains.

Spokesperson Mohammed Hanoun stated the plan aims to “ensure continuity of essential supplies without significant price hikes,” through the buildup of strategic reserves and strengthened market oversight to prevent hoarding or price manipulation.

Security services, meanwhile, reported the arrest of 660 individuals accused of exploiting regional instability. More visibly, daily life is beginning to feel the pressure: consumer activity is slowing, prices of some goods are creeping up, and travel logistics have grown more complex.

With Baghdad International Airport temporarily closed, Basra has become the only functional air entry point. According to sources, the cost of returning to Iraq by land via Jordan has soared from $70 to $250 per passenger.

Experts warn that Iraq’s economic fragility and its deep entanglement with Iran leave it acutely vulnerable. Dr. Siham Youssef, a professor of international economics, explained that Iraq’s heavy dependence on oil exports - comprising over 90% of state revenue - offers little cushion in times of geopolitical upheaval.

While global oil prices have risen by 8% to 12%, Youssef cautioned that any benefit could be wiped out by rising transportation costs, insurance premiums, or damage to infrastructure.

Compounding the issue is Iraq’s reliance on Iranian gas for electricity production. If the conflict interrupts Iranian gas flows, Iraq may face severe power shortages, rising costs, and mounting pressure on an already stretched budget.

Shipping risks are also increasing, with Iraq’s ports located dangerously close to potential conflict zones. Youssef noted that international shipping and insurance firms may soon classify Iraqi ports as “high-risk,” leading to surging logistics costs. Additionally, the closure of Iraqi airspace threatens not only civil aviation but also the loss of overflight revenues.