The European Union is currently discussing a deal to partially suspend several sanctions on Syria’s energy industry, including scrapping bans on importing crude from the country. Last month, in a non-paper, the EU proposed the removal of “export ban on oil and gas technology, as well as restrictions on export and participation in infrastructure projects and financing.” An informal EU document is used by member states in closed door negotiations.

According to the paper, the EU was also considering a possible delisting of Al-Qaeda-related factions such as Hay’at Tahrir al-Sham (HTS) as terrorist groups, a move that must be decided at UN Security Council level before being implemented by the EU. HTS–a former Al-Qaeda branch in Syria that was linked to ISIS in the region–led the fall of the Bashar al-Assad regime. EU countries are also mulling lifting restrictions on airlines, such as the Syrian Arab Airlines, in order to “facilitate civilian flight operations between the EU and Syria”. 

 EU Regulation 36/2012has imposed various restrictions on Syria’s energy sector including:

• Prohibition on the transport of crude oil and petroleum products of Syrian origin
• Prohibition on the provision of key equipment and technology for use in the oil and gas industry in Syria,
• Prohibition on the provision of insurance and reinsurance to Syrian persons and entities

The United States has imposed similar sanctions, including bans on:

• Exporting, re-exporting, selling or supplying directly or indirectly, of any services to Syria
• Importing or dealing in Syrian-origin petroleum or petroleum products
• Making new investments in Syria

Syria is facing an energy crisis after Iraq suspended crude oil deliveries to Syria In December. “Iraq has decided to stop providing Syria with crude oil starting this month,” Iraqi member of Parliament Mustafa Sanad said shortly after the overthrow of Assad. 

Prior to the decision by Baghdad, Syria was importing some ~120,000 barrels of Iraq crude daily. Meanwhile, supplies of crude oil from Iran have alsoended following the news of the change in power in Syria. Fuel prices in Syria have skyrocketed due to acute shortages during the transitional period.

By Alex Kimani for Oilprice.com

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