On 20 June 2025, the Swiss Federal Council announced that Switzerland is lifting its economic sanctions against Syria (see press release here). This decision is a move to align Switzerland with the EU’s decision of 27 May 2025 (see blog post here). The revision follows the initial easing of specific sanctions related to Syria’s energy and transport sectors, as well as certain financial services and banking relationships, implemented on 7 March 2025 (see press release here). The changes in Switzerland’s sanctions framework against Syria entered into force on 20 June 2025 at 6 pm.
While this latest change significantly reduces the sanctions imposed on Syria, not all Swiss sanctions on Syria have been lifted, and the Ordinance on Measures against Syria (“Syria Ordinance“) remains in effect. Under the latest revision, Switzerland has made the following changes:
- The trade restrictions on precious metals and diamonds, as well as the prohibition on the provision of related financial or brokerage services to or from the Syrian government and affiliated entities, have been lifted.
- The prohibition on the sale, delivery, export and transit of certain luxury items to Syria has been lifted.
- Twenty-four entities key to Syria’s economic recovery, including the Central Bank of Syria, have been removed from the list of entities subject to the freezing of funds and economic resources.
- The freezing of funds and economic resources owned or controlled by the Central Bank of Syria and located outside Syria on 8 June 2012 has been lifted. Moreover, a new licensing ground has been introduced to authorize the release of frozen funds or economic resources held by the Syrian Ministries of Defense and Interior, or the provision of certain funds or economic resources to these organizations if these funds or resources are necessary for the cooperation between these organizations and a Swiss public organization or institution in the areas of reconstruction, capacity building, counter-terrorism or migration.
- The bans on payments by the European Investment Bank in connection with existing loan agreements with the Syrian state or any authority of the Syrian state, as well as the direct or indirect sale or purchase of Syrian government or government-guaranteed bonds, have been scrapped entirely.
- The restrictions on financial support for trade applying to the Swiss Export Risk Insurance regarding business with Syria have been lifted.
- With the complete lifting of the previously existing ban on banking, “Western” banks are now once again, inter alia, allowed to open accounts with Syrian banks; establish new correspondent relationships; set up representative offices, branches or subsidiaries in Syria; and enter into joint ventures with Syrian banks.
- The Syria Ordinance allows the conclusion, extension or renewal of insurance and reinsurance contracts with Syria, including its government, public bodies, enterprises and agencies, as well as with individuals or entities acting on their behalf or under their instruction.
Targeted sanctions against individuals and entities associated with the former Bashar al-Assad government remain in effect. These restrictions include Articles 10, 16 and 17 of the Syria Ordinance, which relate to the freezing of assets, the prohibition of settling claims corresponding to restricted contracts or transactions, and the prohibition of entering or transiting Switzerland, respectively. The respective prohibitions apply to persons listed in Annex 7 of the Syria Ordinance. Trade restrictions on military equipment and spare parts; goods that could be used for internal repression; and equipment, technology and software that could be used for the surveillance and interception of internet and telephone traffic also remain in force (Articles 2 and 6 of the Syria Ordinance). Likewise, trade restrictions on cultural goods continue to apply (Article 9a of the Syria Ordinance).
Most importantly, the separate Ordinance on the Blocking of Assets in Connection with Syria of 7 March 2025 (“Syria PEP Ordinance“) is not affected by the latest revision.
With the above revision, Switzerland is participating in a wider trend of relaxation of sanctions against Syria, following similar moves by jurisdictions such as the EU, the US and the UK. These efforts aim to support Syria’s economic recovery and foster an inclusive and peaceful political transition. The Federal Council has stated that it will continue to actively monitor the situation in Syria.
