The EU has lifted some sanctions against Syria, allowing oil exports from Kurdish regions to resume. A deal between the Kurdish-led administration and Syria’s new government may facilitate resource sharing, potentially leading to national stability. However, the oil industry’s recovery presents significant challenges after over a decade of war, and efforts to boost production continue amidst ongoing supply issues.
The European Union has recently suspended several sanctions against Syria, particularly impacting the energy and banking sectors, which has allowed oil to resume flowing from the Kurdish-controlled regions in the northeast. Kurdish authorities have initiated shipments of oil from their fields to the central government in Damascus, indicating a significant step toward reconciliation and stability in a post-Assad era. In conjunction, Syria’s newly appointed oil minister has invited foreign oil companies to resume operations following the easing of these sanctions.
The Syrian oil industry, however, remains in disarray due to the prolonged conflict, neglect, and sanctions over the past fourteen years. Restarting production and refining operations will prove to be an arduous endeavor. As this recovery process unfolds, the government in Damascus is seeking new import tenders via local intermediaries to compensate for supply shortages.
A recent deal between Syria’s new government, Hayat Tahrir Al-Sham, and Kurdish militias suggests the possibility of mitigating the fragmentation and competition for resources that have historically led to conflict. Currently, the northeast is governed by the Syrian Democratic Forces (SDF), which receives sporadic support from the United States. As reported by Arab sources, approximately 5,000 barrels of oil per day have begun flowing from the Kurds to Damascus, with goals to sustain two refineries as operations expand.
In conclusion, the recent suspension of sanctions by the European Union has opened pathways for Syrian oil to flow once more from Kurdish regions to the government in Damascus, setting the stage for possible reconciliation in the war-torn country. Despite the challenges posed by the devastated oil industry, both local authorities and the national government are making efforts to revive production and ensure oil supply stability, which could lead to greater national unity.
Original Source: oilprice.com
