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The economic crisis of the Syrian regime has worsened a lot recently, after the United States tightened the sanctions it imposed on entities, companies and people close to the regime.
The application of US and European sanctions since 2011, which led to the Caesar Act, has had multiple effects on the Syrian economy, as the working mechanisms of vital sectors, in particular banks, small and medium-sized enterprises and agriculture they have been disrupted, according to a report by the Carter Center for Research by the president of the Forum of Arab Economists, Samir Al-Aita.
Informal transfers and networks
The report considered that “sanctions have slowed the growth of private banks, even before these banks were classified on the sanctions list, as they are all linked to Lebanese and Jordanian banks that have lost their relationship with Western banks for compliance and risk avoidance “.
He added that “Islamic and traditional Gulf banks have dominated the banking sector in Syria”, noting that “the economy was based on informal financial transfers from neighboring countries, notably Lebanon and Turkey, which left the Central Bank in a state of inability to intervene to protect the exchange rate of the pound against the dollar “. .
Illicit trade networks, controlled by the security services responsible for the repression, have also grown, according to the report.
Oil supplies
The US embargo on the importation of Syrian oil from abroad has resulted in the regime’s dependence on oil supplies from Iran and Russia, in addition to all parties, including the opposition, resorting to smuggling oil from areas under the ISIS control. Problems appeared to secure fuel for the pumps, causing a crisis in the supply of drinking water.
The Lebanese crisis
The report linked the Syrian economy and the Lebanese crisis, considering that “assets belonging to members of the Syrian middle class and businessmen were lost in Lebanese banks, including those belonging to small and medium-sized companies in Syria”, as Syria has always confident in the Lebanese economy.
The financial crisis in Lebanon was negatively reflected, as about $ 30 billion of savings belonging to Syrians were seized from the capital of small and medium-sized companies, which created problems in the growth of companies and the focus of projects. only in food production.
Agriculture and food security
The production of meat and wheat declined, which created great difficulties in meeting special needs in terms of food security and availability of bread.
The sanctions also contributed to a complete halt to fertilizer imports into Syria, as well as a decline in the value of fruits and vegetables, as they are no longer exported with the same regularity and quantity.
The report noted that after the sanctions, Syria lost its ability to produce and export essential medicines.
