Britain lifts Assad-era sanctions in boost for Syria and Ahmad Al Shara

Defence, financial and energy sectors will all have restrictions lifted, providing opportunity for significant economic growth

Stacks of Syrian notes at an exchange shop in Damascus. Britain said its lifting of sanctions was also to 'promote regional stability and encourage the return of Syrian refugees'. AFP

Syria’s new government will receive a significant economic boost on Friday when Britain lifts a tranche of sanctions including those imposed on its defence, financial and energy sectors.

UK Foreign Secretary David Lammy will put forward legislation to parliament to remove the decade-long restrictions introduced during the rule of the now-deposed former president, Bashar Al Assad.

A notice posted online by the UK Office of Financial Sanctions Implementation said the Syrian Ministry of Interior, Ministry of Defence and General Intelligence Directorate were among 12 entities no longer subject to an asset freeze.

Sanctions against a number of media groups and intelligence agencies were also lifted, although Syria’s new rulers dissolved the Assad-era security outfits in January.

The British government said sanctions were being removed to “support Syria's economic recovery” after the fall of the Assad regime in early December, although it will maintain restrictions on certain goods and areas of technology.

The measures will come into force on Friday and aim to promote regional stability as well as encourage the return of Syrian refugees, it said.

“The Syrian people deserve the opportunity to rebuild their country and economy, and a stable Syria is in the UK’s national interest,” said Hamish Falconer, Minister for the Middle East. “That’s why I’m pleased that the UK has amended its Syria sanctions and lifted sanctions on 12 entities to support them to do just that. The UK is committed to building greater stability in Syria and the wider region.”

Amendments to sanctions will also allow the UK to hold Mr Al Assad and his associates accountable for human rights abuse. Sanctions imposed on members of the former regime and those involved in the illicit trade of Captagon will remain in place, the foreign office said.

The new Syrian government, led by President Ahmad Al Shara, is aiming to persuade western capitals that the militant origins of the rebels who toppled the Assad regime are confined to the past, and that punitive international sanctions should be lifted.

Syria’s President Ahmad Al Shara led the offensive that toppled his predecessor Bashar Al Assad. EPA

Last month, the interim government under President Ahmad Al Shara, whose Hayat Tahrir Al Sham rebel group led the offensive that toppled Mr Al Assad after a 13-year civil war, welcomed the lifting of UK sanctions on 24 entities, including the central bank and oil companies.

The UK was the first country to ease restrictions on dealings with Syrian petroleum companies, banks and Syrian Airlines since the ousting of Mr Al Assad.

The Syrian Foreign Ministry said Britain’s move was a “positive step” that would contribute to the country’s economic and political recovery.

Whitehall sources have told The National that the UK wanted the lifting of the measures to “be helpful in securing the inclusive transitional process”.

The sanctions relief will also help the country confront the corruption and looting of its wealth and resources, and the need to repair extensive damage from the war and restore vital services.

The European Union suspended a range of punitive measures against Damascus this year, including restrictions related to energy, banking, transport and reconstruction.

The UK’s lifting of sanctions comes after Jonathan Powell, the National Security Adviser, held low-key meetings with the new Syrian administration.

It is understood a significant effort is under way by Britain's Foreign Office to create a permanent diplomatic presence in Damascus, providing security and other support. Britain’s embassy in Damascus, abandoned in 2012, is derelict, so officials are trying to find a new site.

Officials have also insisted Mr Al Shara’s administration will have to demonstrate a continuing inclusivity of Syria’s many minorities. if he obliges, Britain will then send a senior minister to Damascus to announce further assistance.