The European Union Begins Gradual Lifting of Energy Sanctions on Syria

After over a decade of restrictions, the European Union is beginning a gradual and conditional lifting of sanctions on Syria’s oil, gas, and financial sectors. A strategic move to support the country's reconstruction after the fall of the Assad regime.

Partagez:

The gradual lifting of economic sanctions on Syria marks a strategic shift in the European Union’s (EU) Middle East policy. These measures, implemented since 2011, were imposed in response to human rights violations by Bashar al-Assad’s regime. Following the regime’s collapse in December 2024, the EU is pursuing a conditional approach aimed at stimulating the country’s reconstruction.

Syria’s energy reserves, while modest by regional standards, remain a critical asset for revitalizing an economy in ruins. Before the 2011 conflict, Syria had 2.5 billion barrels of proven oil reserves, mainly located in the Deir ez-Zor and Hassakeh regions. Additionally, its natural gas reserves were estimated at 8.5 trillion cubic feet, concentrated in areas around Palmyra and Homs. These resources represented a significant share of the nation’s revenue, albeit negligible on a global scale.

A Potential to Rebuild

The Syrian civil war caused the collapse of its energy sector, previously a key contributor to the national economy. By 2018, Syria’s oil production had dropped to just 24,000 barrels per day, a 90% decline compared to 2010 levels. Energy infrastructure, heavily damaged or controlled by armed factions, now requires significant investment for rehabilitation.

In this context, the EU’s decision to ease sanctions is seen as an opportunity to attract international players to Syria’s energy sector. However, this lifting comes with conditions. Brussels demands that Syria’s new government commit to protecting minority rights, implementing institutional reforms, and ensuring transparent governance.

Gradual and Reversible Measures

The technical details of this lifting process are under development. Among the initial steps, the EU plans to partially lift the embargo on importing crude oil and petroleum products from Syria. Restrictions on foreign investments in Syria’s oil and gas industries may also be eased, but in a controlled manner to prevent misuse of funds.

Certain sanctions targeting specific entities linked to the former regime are expected to remain in place. This approach aims to ensure that former regime officials do not directly benefit from the economic recovery.

Implications for the Regional Energy Market

If Syria’s oil and gas production resumes, it could play a modest yet strategic role in the region’s energy dynamics. Syria could potentially become a secondary supplier to its neighbors or serve as a transit point for energy infrastructure linking the Middle East to Europe.

However, challenges remain. Investor skepticism, logistical hurdles, and the need to comply with environmental and governance standards complicate short-term prospects. Analysts predict that fully restoring the sector will require years of work and substantial financial commitments.

Nonetheless, this decision sends a strong signal from the European Union, which seeks to play a key role in stabilizing and rebuilding a country at the crossroads of strategic regional and global energy interests.

British company Prax Group has filed for insolvency, putting hundreds of jobs at its Lindsey oil site at risk, according to Sky News.
Orlen announces the definitive halt of its Russian oil purchases for the Czech Republic, marking the end of deliveries by Rosneft following the contract expiry, amid evolving logistics and diversification of regional supply sources.
Equinor and Shell launch Adura, a new joint venture consolidating their main offshore assets in the United Kingdom, aiming to secure energy supply with an expected production of over 140,000 barrels of oil equivalent per day.
Equinor announces a new oil discovery estimated at between 9 and 15 mn barrels at the Johan Castberg field in the Barents Sea, strengthening the reserve potential in Norway's northern region.
Sierra Leone relaunches an ambitious offshore exploration campaign, using a 3D seismic survey to evaluate up to 60 potential oil blocks before opening a new licensing round as early as next October.
Faced with recurrent shortages, Zambia is reorganising its fuel supply chain, notably issuing licences for operating new tanker trucks and service stations to enhance national energy security and reduce external dependence.
The closure of the Grangemouth refinery has triggered a record increase in UK oil inventories, highlighting growing dependence on imports and an expanding deficit in domestic refining capacity.
Mexco Energy Corporation reports an annual net profit of $1.71mn, up 27%, driven by increased hydrocarbon production despite persistently weak natural gas prices in the Permian Basin.
S&P Global Ratings lowers Ecopetrol's global rating to BB following Colombia's sovereign downgrade, while Moody’s Investors Service confirms the group's Ba1 rating with a stable outlook.
Shell group publicly clarifies it is neither considering discussions nor approaches for a potential takeover of its British rival BP, putting an end to recent media speculation about a possible merger between the two oil giants.
Petro-Victory Energy Corp. starts drilling of the AND-5 well in the Potiguar Basin, Brazil, as the first phase of an operation financed through its strategic partnership with Azevedo & Travassos Energia.
The Texan Port of Corpus Christi has completed major widening and deepening work designed to accommodate more supertankers, thus strengthening its strategic position in the US market for crude oil and liquefied natural gas exports.
CNOOC Limited’s Hong Kong subsidiary and KazMunayGas have concluded a nine-year exploration and production contract covering nine hundred and fifty-eight square kilometres in Kazakhstan, sharing investment and operations equally.
Donald Trump announced that the United States will no longer oppose Chinese purchases of Iranian oil, immediately triggering a drop in global crude oil prices and profoundly reshaping international energy trade partnerships.
Research firm S&P Global Commodity Insights lifts its outlook for the fourth straight year, betting on three point five mn barrels per day from 2025 despite lower prices.
Enbridge plans to expand its infrastructure to increase oil transportation from the American Midwest to the Gulf Coast, anticipating rising exports and addressing current market logistical constraints.
US commercial crude inventories significantly decline by 3.1 million barrels, widely surpassing initial forecasts and immediately pushing international oil prices higher.
The UK could have hydrocarbon reserves twice as large as current official estimates, according to Offshore Energies UK, highlighting the impact of fiscal policies on forecasts and the economic future of the North Sea.
Following US strikes in Iran, international energy companies partially evacuate their teams from Iraq as a precaution, while Lukoil maintains its entire personnel on southern oilfields.
Chinese independent refineries remain cautious amid rising Iranian crude prices driven by escalating Iran-Israel tensions, potentially threatening access to the strategic Strait of Hormuz.