US hits Syria with toughest sanctions yet as economic collapse looms

Washington sanctions dozens including president Bashar al-Assad’s wife Asma

A man holds up a sign as he joins others gathering for a demonstration in support of Syria's President Bashar al-Assad and against US sanctions on the country, in the centre of the capital Damascus (AFP)

The United States has imposed some of the toughest sanctions yet against the regime of Syrian president Bashar al-Assad, in a bid to strangle funds to his government and push him to enter UN-backed peace talks to end the decade-long war.

The fresh round of designations targeted 39 individuals and companies, including the president, his wife Asma, and two of his siblings. According to US secretary of state Mike Pompeo, it will be accompanied by “many more” in the weeks and months ahead.

It comes at a tricky time for Mr Assad as the country staggers through an unprecedented financial crisis that has sparked rare anti-government protest in regime-held areas.

Syria’s currency has plummeted to a record low, losing three times its value since January alone, while World Food Programme chief David Beasley warned this week, amid soaring food prices “famine could well be knocking at... the door”.

The sanctions – part of the Caesar Syria Civilian Protection Act signed by President Donald Trump in December – include members of the extended Assad family, senior military leaders and business executives such as steel and petrochemical tycoon Mohamed Hamsho.

Many of those on the list were already subject to US sanctions, but the penalties also target non-Syrians who do business with them.

In an accompanying statement, Mr Pompeo singled out blacklist newcomer Asma. The British born wife of Assad was in 2012 sanctioned by the European Union who imposed a travel ban and asset freeze on her.

“I will make special note of the designation for the first time of Asma al-Assad, the wife of Bashar al-Assad, who with the support of her husband and members of her Akhras family has become one of Syria’s most notorious war profiteers,” Mr Pompeo said.

“Anyone doing business with the Assad regime, no matter where in the world they are, is potentially exposed to travel restrictions and financial sanctions,” he added.

The sanctions do provide provisions exempting humanitarian goods and services and are intended to ensure the flow of aid and mitigate the economic consequences of the sanctions on the Syrian people.

But many in Syria fear it will inevitably see the economic collapse deepen. Swathes of the country have to be rebuilt after a decade of war that has killed nearly 400,000 people.

On Twitter, Mr Pompeo reiterated that Washington’s “sustained campaign of sanctions” aims to hold the regime and its foreign enablers “accountable against the Syrian people”.

He warned sanctions will continue to be slapped on Mr Assad and his backers until his regime stop “their needless, brutal war and agree to a political solution”, as called for by the UN.

Only 17 individuals were named in the sanctions list, alongside the Fourth Division of the Syrian Arab Army and Iranian militia Fatemiyoun Division.

Others listed include Assad’s own sister Bushra, his brother Maher, the commander of the Fourth Division, and his brother’s wife Manal. Also listed was Mohamed Hamsho, the head of the Damascus Chamber of Commerce, his wife Rania al-Dabbas, and his three sons, Amr, Ali and Ahmad, who represented Syria as a showjumper in the 2012 Olympics.

Businessmen Nader Kalai, and Khaled Al-Zubaidi, who both have Canadian nationality,  were also blacklisted for providing financial support to the regime. 

Several powerful construction magnates and their companies – at least one anchored in Austria – were also included because they developed land "expropriated from Syrians displaced by the regime", an accompanying statement read.

"After forcing millions of Syrian citizens to flee from their homes throughout the Syrian civil war, the Assad regime and its supporters are now pouring resources into building luxury real estate developments," it added, mentioning a multimillion-dollar development Marota City, known as the largest investment project in Syria. Syria has already faced a slew of sanctions from the US and European countries, some in place even before the start of the 2011 uprising.

But the Caesar Act and its accompanying provisions are among the most wide-ranging as they are designed to prevent anyone around the world from doing business with Syrian officials or state institutions or from participating in the country’s reconstruction.

It will likely severely impact the inflow of foreign capital from Assad’s main allies like Russia and Iran, as well as China and neighbouring countries including Lebanon.

Representatives from Moscow and Beijing expressed their rage in a Security Council meeting the day before the sanctions were announced.

Russia’s UN Ambassador Vassily Nebenzia said Washington aimed to “overthrow the legitimate authorities of Syria”.

China’s UN ambassador Zhang Jun, meanwhile, said imposing sanctions during the coronavirus pandemic was “simply inhumane and may cause additional catastrophes”.

Back in Syria, Safwan Qurabi, a member of the country’s parliament, said the government was enforcing measures to deal with the sanctions which he said pit “Syrian citizens against the government”.

“[The Caesar Act] is an invitation to inner discord and chaos,” he added.

In Syria, civilians told The Independent they were “stealing themselves” for the impact. Many have already panicked and are hoarding dollars.

Protests erupted over the last few days in the southern province of Suweida, which is the centre of Syria’s Druze religious minority and nominally under regime control.

Rallies called for the end of the Assad regime, over the worsening economic crisis.

The price of basic goods has more than doubled over the last year according to the World Food Programme. The last six months alone has pushed 1.4 million more people into food insecurity.