Syria Monthly Report

Executive summary

International engagement

In a major yet anticipated diplomatic shift, the US lifted key sanctions on Syria in late June following a high-level meeting between President Trump and President Ahmad al-Sharaa on the sidelines of a Gulf summit, reflecting Washington’s growing willingness to engage with Damascus. The White House’s executive order terminated six core sanctions programs and opened pathways for trade, banking, and tech access. While the rollback marks a major opening for Syria, it remains fragile. Key sanctions such as the Caesar Act still require congressional repeal, and many designated individuals remain on US watchlists. The potential for snap-back sanctions, legal entanglements, and political reversals will likely temper investor confidence. For now, the easing signals a readiness to explore deeper cooperation, but Syria’s path to normalized international engagement remains conditional and contested.  

Security, governance, and political stability

In June, Syria’s transitional government stepped up its efforts to advance its commitment to transitional justice by pursuing high-profile arrests. While the detention of figures linked to past atrocities suggests a commitment to accountability, the release of others sparked public backlash and raised concerns about inconsistent justice. At the same time, President al-Sharaa initiated a major judicial reckoning, dismissing dozens of judges while gradually reintegrating defected officers and dismissed civil servants to stabilize state institutions. In parallel, the government launched a formal process to establish a new People’s Assembly, guided by a new Higher Committee for Elections. The 150-seat legislature will be formed via a two-stage indirect selection process, combining governorate-based electoral bodies and presidential appointments. While outreach and consultation efforts have been underway, many Syrians remain wary of the Assembly’s opaque structure.  

Economic stability

Syria took major economic steps to reenter global markets and stabilize domestic conditions. The country rejoined the SWIFT banking network for the first time in over a decade, a move symbolically important but practically limited by Syria’s ongoing grey-list status. The government also enacted a 200% salary and pension increases. While this offers short-term relief for citizens, it may carry long-term fiscal risks, especially if paired with rising public sector employment and insufficient structural reforms. Simultaneously, the government launched a wave of investment initiatives, including new industrial zones, textile factory revivals, and foreign infrastructure deals. Notably, Build–Operate–Transfer (BOT) models with multinational companies mark a pivot toward foreign-led development. Yet without safeguards, these ventures could deepen inequality and shift influence to commercial actors operating beyond public oversight.  

Infrastructure and Services 

The government’s efforts to restore services in June centered on education, food security, and energy delivery, with each sector reflecting broader attempts to rebuild state authority and public trust. The 2025 national exams, the first since Assad’s fall, were administered across the country, including in AANES-controlled areas. For food security, a new agreement with WFP was finalized to stabilize bread prices for up to 2 million people, though Syria’s wheat crisis remains severe. In energy, pipeline reactivations, OPEC Fund re-engagement, and growing cooperation with Russia and the AANES supported modest gains in fuel distribution and electricity supply. However, structural weaknesses persist, including a fragile grid, reliance on foreign inputs, and unequal recovery between regions.