Gulf seeks to avoid US sanctions on Syria

“By opposing the legitimacy of Assad’s government and continuing to impose sanctions on Damascus and individuals in Assad’s clique,” writes Giorgio Cafiero, “Washington is creating dilemmas for Gulf Cooperation Council (GCC) states, such as the United Arab Emirates, that see Syria’s reconstruction as representing important opportunities for economic and geopolitical empowerment. Undoubtedly, securing lucrative contracts in Syria’s reconstruction will inevitably entail cooperating with the Damascus regime. Yet this reality has potential to create further complications in regional dynamics, as well as US-GCC relations.”

This column said last month, “As the Gulf states reconsider their relations with Damascus and Syria’s return to the Arab League, and as the United States looks to Saudi Arabia and the Gulf to finance Syrian reconstruction, a question will emerge regarding US and multilateral sanctions. … More sanctions … could constrain regional and international efforts to support a Syrian transition and the country’s reconstruction, including initiatives of the United Nations and the World Bank. As it is with Iran, the United States could find itself boxed in, seeking exceptions to its own sanctions policies to allow allies to fund reconstruction.”

“The UAE’s hosting of a Syrian trade delegation earlier this month was a case in point,” reports Cafiero. “Mohammed Hamsho, a Syrian closely tied to the Assad family who has been sanctioned by the US Treasury, led the delegation. Other Syrian lawmakers and businessmen also targeted by US sanctions attended too. The long reach of US sanctions is unquestionably a concern for GCC states that seek to exert their influence in Syria, primarily via construction projects. Non-US companies, such as Emirati ones, seeking to enter Syria must account for Washington’s sanctions because any involvement of US citizens or American firms risks trouble. Given that Syria’s business climate is opaque, even careful companies that do their due diligence may find themselves violating US sanctions if they deal with Syrian individuals or entities targeted by Washington.”