What Would Lifting US Sanctions on Syria Mean to the War-Torn Country?

People walk past a billboard displaying Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and US President Donald Trump with a slogan thanking Saudi Arabia and the United States, in Damascus on May 14, 2025. (AFP)
People walk past a billboard displaying Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and US President Donald Trump with a slogan thanking Saudi Arabia and the United States, in Damascus on May 14, 2025. (AFP)
TT

What Would Lifting US Sanctions on Syria Mean to the War-Torn Country?

People walk past a billboard displaying Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and US President Donald Trump with a slogan thanking Saudi Arabia and the United States, in Damascus on May 14, 2025. (AFP)
People walk past a billboard displaying Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and US President Donald Trump with a slogan thanking Saudi Arabia and the United States, in Damascus on May 14, 2025. (AFP)

President Donald Trump’s announcement that the US will ease sanctions on Syria could eventually facilitate the country’s recovery from years of civil war and transform the lives of everyday Syrians.

But experts say it will take time, and the process for lifting the sanctions — some of which were first introduced 47 years ago — is unclear.

“I think people view sanctions as a switch that you turn on and off,” said Karam Shaar, a Syrian economist who runs the consultancy firm Karam Shaar Advisory Limited. “Far from it.”

Still, the move could bring much-needed investment to the country, which is emerging from decades of autocratic rule by the Assad family as well as the war. It needs tens of billions of dollars to restore its battered infrastructure and pull an estimated 90% of the population out of poverty.

And Trump’s pledge has already had an effect: Syrians celebrated in streets across the country, and Arab leaders in neighboring nations that host millions of refugees who fled Syria’s war praised the announcement.

What are the US sanctions on Syria? Washington has imposed three sanctions programs on Syria. In 1979, the country was designated a “state sponsor of terrorism” because its military was involved in neighboring Lebanon's civil war and had backed armed groups there, and eventually developed strong ties with the Iran-backed Hezbollah group.

In 2003, then-President George W. Bush signed the Syria Accountability Act into law, as his administration faced off with Iran and Tehran-backed governments and groups in the Middle East. The legislation focused heavily on Syria's support of designated terror groups, its military presence in Lebanon, its alleged development of weapons of mass destruction, as well as oil smuggling and the backing of armed groups in Iraq after the US-led invasion.

In 2019, during Trump's first term, he signed the Caesar Act, sanctioning Syrian troops and others responsible for atrocities committed during the civil war.

Caesar is the code name for a Syrian photographer who took thousands of photographs of victims of torture and other abuses and smuggled them out of the country. The images, taken between 2011 and 2013, were turned over to human rights advocates, exposing the scale of the Syrian government’s brutal crackdown on political opponents and dissidents during countrywide protests.

What has been the impact of US sanctions on Syria? The sanctions — along with similar measures by other countries — have touched every part of the Syrian economy and everyday life in the country.

They have led to shortages of goods from fuel to medicine, and made it difficult for humanitarian agencies responding to receive funding and operate fully.

Companies around the world struggle to export to Syria, and Syrians struggle to import goods of any kind because nearly all financial transactions with the country are banned. That has led to a blossoming black market of smuggled goods.

Simple tasks like updating smartphones are difficult, if not impossible, and many people resort to virtual private networks, or VPNs, which mask online activity, to access the internet because many websites block users with Syrian IP addresses.

The impact was especially stark after a devastating 7.8 magnitude earthquake hit Türkiye and northern Syria in February 2023, compounding the destruction and misery that the war had already brought.

Though the US Treasury issued a six-month exemption on all financial transactions related to disaster relief, the measures had limited effect since banks and companies were nervous to take the risk, a phenomenon known as over-compliance.

Interim Syrian President Ahmed al-Sharaa — who led the insurgency that ousted President Bashar al-Assad — has argued the sanctions have outlived their purpose and are now only harming the Syrian people and ultimately preventing the country from any prospect of recovery.

Trump and Sharaa met Wednesday.

Washington eased some restrictions temporarily in January but did not lift the sanctions. Britain and the European Union have eased some of their measures.

What could lifting the sanctions mean for Syria? After Trump’s announcement, Syria's currency gained 60% on Tuesday night — a signal of how transformational the removal of sanctions could be.

Still, it will take time to see any tangible impact on Syria's economy, experts say, but removing all three sanctions regimes could bring major changes to the lives of Syrians, given how all-encompassing the measures are.

It could mean banks could return to the international financial system or car repair shops could import spare parts from abroad. If the economy improves and reconstruction projects take off, many Syrian refugees who live in crowded tented encampments relying on aid to survive could decide to return home.

“If the situation stabilized and there were reforms, we will then see Syrians returning to their country if they were given opportunities as we expect,” says Lebanese economist Mounis Younes.

The easing of sanctions also has an important symbolic weight because it would signal that Syria is no longer a pariah, said Shaar.

Mathieu Rouquette, Mercy Corps’ country director for Syria, said the move “marks a potentially transformative moment for millions of Syrians who have endured more than 13 years of economic hardship, conflict, and displacement.”

But it all depends on how Washington goes about it.

“Unless enough layers of sanctions are peeled off, you cannot expect the positive impacts on Syria to start to appear,” said Shaar. “Even if you remove some of the top ones, the impact economically would still be nonexistent.”



Khartoum Markets Back to Life but 'Nothing Like Before'

Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)
Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)
TT

Khartoum Markets Back to Life but 'Nothing Like Before'

Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)
Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)

The hustle and bustle of buyers and sellers has returned to Khartoum's central market, but "it's nothing like before," fruit vendor Hashim Mohamed told AFP, streets away from where war first broke out nearly three years ago.

On April 15, 2023, central Khartoum awoke to battles between the Sudanese army and the paramilitary Rapid Support Forces, who had been allies since 2021, when they ousted civilians from a short-lived transitional government.

Their war has since killed tens of thousands and displaced millions. In greater Khartoum alone, nearly 4 million people -- around half the population -- fled the city when the RSF took over.

Hashim Mohamed did not.

"I had to work discreetly, because there were regular attacks" on businesses, said the fruit seller, who has worked in the sprawling market for 50 years.

Like him, those who stayed in the city report living in constant fear of assaults and robberies from fighters roaming the streets.

Last March, army forces led an offensive through the capital, pushing paramilitary fighters out and revealing the vast looting and destruction left behind.

"The market's not what it used to be, but it's much better than when the RSF was here," said market vendor Adam Haddad, resting in the shade of an awning.

In the market's narrow, dusty alleyways, fruits and vegetables are piled high, on makeshift stalls or tarps spread on the ground.

- Two jobs to survive -

Khartoum, where entire neighborhoods were once under siege, is no longer threatened by the mass starvation that stalks battlefield cities and displacement camps elsewhere in Sudan.

But with the economy a shambles, a good living is still hard to provide.

"People complain about prices, they say it's too expensive. You can find everything, but the costs keep going up: supplies, labor, transportation," said Mohamed.

Sudan has known only triple-digit annual inflation for years. Figures for 2024 stood at 151 percent -- down from a 2021 peak of 358.

The currency has also collapsed, going from trading at 570 Sudanese pounds to the US dollar before the war to 3,500 in 2026, according to the black market rate.

One Sudanese teacher, who only a few years ago could provide comfortably for his two children, told AFP he could no longer pay his rent with a monthly salary of 250,000 Sudanese pounds ($71).

To feed his family, pay for school, and cover healthcare, he "works in the market or anywhere" on his days off.

"You have to have another job to pay for the bare minimum of basic needs," he said, asking for anonymity to protect his privacy.

For Adam Haddad, the road to recovery will be a long one.

"We don't have enough resources or workers or liquidity going through the market," he said, adding that reliable electricity was still a problem.

"The government is striving to restore everything, and God willing, in the near future, the power will return and Khartoum will become what it once was."


Trump Heads into Davos Storm, with an Eye on Home

FILE - President Donald Trump is illuminated by a camera flash as he gestures while walking across the South Lawn of the White House, Nov. 2, 2025, in Washington, after returning from a trip to Florida. (AP Photo/Mark Schiefelbein, File)
FILE - President Donald Trump is illuminated by a camera flash as he gestures while walking across the South Lawn of the White House, Nov. 2, 2025, in Washington, after returning from a trip to Florida. (AP Photo/Mark Schiefelbein, File)
TT

Trump Heads into Davos Storm, with an Eye on Home

FILE - President Donald Trump is illuminated by a camera flash as he gestures while walking across the South Lawn of the White House, Nov. 2, 2025, in Washington, after returning from a trip to Florida. (AP Photo/Mark Schiefelbein, File)
FILE - President Donald Trump is illuminated by a camera flash as he gestures while walking across the South Lawn of the White House, Nov. 2, 2025, in Washington, after returning from a trip to Florida. (AP Photo/Mark Schiefelbein, File)

Donald Trump returns to the Davos ski resort next week after unleashing yet another avalanche on the global order. But for the US president, his main audience is back home.

Trump's first appearance in six years at the gathering of the world's political and global elite comes amid a spiraling crisis over his quest to acquire Greenland.

Fellow leaders at the mountain retreat will also be eager to talk about other shocks from his first year back in power, from tariffs to Venezuela, Ukraine, Gaza and Iran.

Yet for the Republican president, his keynote speech among the Swiss peaks will largely be aimed at the United States.

US voters are angered by the cost of living despite Trump's promises of a "golden age," and his party could be facing a kicking in crucial midterm elections in November.

That means Trump will spend at least part of his time in luxurious Davos talking about US housing.

A White House official told AFP that Trump would "unveil initiatives to drive down housing costs" and "tout his economic agenda that has propelled the United States to lead the world in economic growth."

The 79-year-old is expected to announce plans allowing prospective homebuyers to dip into their retirement accounts for down payments.

Billionaire Trump is keenly aware that affordability has become his Achilles' heel in his second term. A CNN poll last week found that 58 percent of Americans believe his first year back in the White House has been a failure, particularly on the economy.

Trump's supporters are also increasingly uneasy about the "America First" president's seemingly relentless focus on foreign policy since his return to the Oval Office.

But as he flies into the snowy retreat, Trump will find it impossible to avoid the global storm of events that he has stirred since January 20, 2025.

Trump will be alongside many of the leaders of the same European NATO allies that he has just threatened with tariffs if they don't back his extraordinary quest to take control of Greenland from Denmark.

Those threats have once again called into question the transatlantic alliance that has in many ways underpinned the western economic order celebrated at Davos.

- 'Economic stagnation' -

So have the broader tariffs Trump announced early in his second term, and he is set to add to the pressure on Europe in his speech.

Trump will "emphasize that the United States and Europe must leave behind economic stagnation and the policies that caused it," the White House official said.

The Ukraine war will also be on the cards.

Ukrainian President Volodymyr Zelensky is hoping for a meeting with Trump to sign new security guarantees for a hoped-for ceasefire deal with Russia, as are G7 leaders.

But while the largest-ever US Davos delegation includes Secretary of State Marco Rubio, special envoy Steve Witkoff and son-in-law Jared Kushner, who have all played key roles on Ukraine, no meeting is assured.

"No bilateral meetings have been scheduled for Davos at this time," the White House told AFP.

Trump is meanwhile reportedly considering a first meeting of the so-called "Board of Peace" for war-torn Gaza at Davos, after announcing its first members in recent days.

Questions are also swirling about the future of oil-rich Venezuela following the US military operation to topple its leader Nicolas Maduro, part of Trump's assertive new approach to his country's "backyard."

But Trump may also pause to enjoy his time in the scenic spot he called "beautiful Davos" in his video speech to the meeting a year ago.

The forum has always been an odd fit for the former New York property tycoon and reality TV star, whose brand of populism has long scorned globalist elites.

But at the same time, Trump relishes the company of the rich and successful.

His first Davos appearance in 2018 met occasional boos but he made a forceful return in 2020 when he dismissed the "prophets of doom" on climate and the economy.

A year later he was out of power. Now, Trump returns as a more powerful president than ever, at home and abroad.


Russia, China Unlikely to Back Iran Against US Military Threats

A man stands by the wreckage of a burnt bus bearing a banner (unseen) that reads "This was one of Tehran’s new buses that was paid for with the money of the people’s taxes,” in Tehran's Sadeghieh Square on January 15, 2026. (AFP)
A man stands by the wreckage of a burnt bus bearing a banner (unseen) that reads "This was one of Tehran’s new buses that was paid for with the money of the people’s taxes,” in Tehran's Sadeghieh Square on January 15, 2026. (AFP)
TT

Russia, China Unlikely to Back Iran Against US Military Threats

A man stands by the wreckage of a burnt bus bearing a banner (unseen) that reads "This was one of Tehran’s new buses that was paid for with the money of the people’s taxes,” in Tehran's Sadeghieh Square on January 15, 2026. (AFP)
A man stands by the wreckage of a burnt bus bearing a banner (unseen) that reads "This was one of Tehran’s new buses that was paid for with the money of the people’s taxes,” in Tehran's Sadeghieh Square on January 15, 2026. (AFP)

While Russia and China are ready to back protest-rocked Iran under threat by US President Donald Trump, that support would diminish in the face of US military action, experts told AFP.

Iran is a significant ally to the two nuclear powers, providing drones to Russia and oil to China. But analysts told AFP the two superpowers would only offer diplomatic and economic aid to Tehran, to avoid a showdown with Washington.

"China and Russia don't want to go head-to-head with the US over Iran," said Ellie Geranmayeh, a senior policy expert for the European Council on Foreign Relations think tank.

Tehran, despite its best efforts over decades, has failed to establish a formal alliance with Moscow and Beijing, she noted.

If the United States carried out strikes on Iran, "both the Chinese and the Russians will prioritize their bilateral relationship with Washington", Geranmayeh said.

China has to maintain a "delicate" rapprochement with the Trump administration, she argued, while Russia wants to keep the United States involved in talks on ending the war in Ukraine.

"They both have much higher priorities than Iran."

- Ukraine before Iran -

Despite their close ties, "Russia-Iranian treaties don't include military support" -- only political, diplomatic and economic aid, Russian analyst Sergei Markov told AFP.

Alexander Gabuev, director of Carnegie Russia Eurasia Center, said Moscow would do whatever it could "to keep the regime afloat".

But "Russia's options are very limited," he added.

Faced with its own economic crisis, "Russia cannot become a giant market for Iranian products" nor can it provide "a lavish loan", Gabuev said.

Nikita Smagin, a specialist in Russia-Iran relations, said that in the event of US strikes, Russia could do "almost nothing".

"They don't want to risk military confrontation with other great powers like the US -- but at the same time, they're ready to send weaponry to Iran," he said.

"Using Iran as a bargaining asset is a normal thing for Russia," Smagin said of the longer-term strategy, at a time when Moscow is also negotiating with Washington on Ukraine.

Markov agreed. "The Ukrainian crisis is much more important for Russia than the Iranian crisis," he argued.

- Chinese restraint -

China is also ready to help Tehran "economically, technologically, militarily and politically" as it confronts non-military US actions such as trade pressure and cyberattacks, Hua Po, a Beijing-based independent political observer, told AFP.

If the United States launched strikes, China "would strengthen its economic ties with Iran and help it militarize in order to contribute to bogging the United States down in a war in the Middle East," he added.

Until now, China has been cautious and expressed itself "with restraint", weighing the stakes of oil and regional stability, said Iran-China relations researcher Theo Nencini of Sciences Po Grenoble.

"China is benefiting from a weakened Iran, which allows it to secure low-cost oil... and to acquire a sizeable geopolitical partner," he said.

However, he added: "I find it hard to see them engaging in a showdown with the Americans over Iran."

Beijing would likely issue condemnations, but not retaliate, he said.

Hua said the Iran crisis was unlikely to have an impact on China-US relations overall.

"The Iranian question isn't at the heart of relations between the two countries," he argued.

"Neither will sever ties with the other over Iran."