A significant shift is brewing in the diplomatic sphere surrounding Syria. The focus has turned to energy supplies: Damascus is prepared to drastically reduce imports of Russian oil in exchange for a relaxation of the sanctions regime from Washington. This is reported by Reuters citing sources familiar with the negotiations.

Energy Bargaining

Syria, which has been critically dependent on Russian energy carriers in recent years, has agreed to strict measures. According to diplomatic sources, Syrian officials have been stating to the US for several months that they are ready to review their purchases. This decision would be a fundamental change in the country's energy policy, which previously wavered on the issue of abandoning Russian volumes.

Experts view this step as a new tool for US pressure on Russia's economic presence in the region. However, the transition itself is fraught with risks. As Nawwar Saban, an analyst at the Arab Center for Modern Studies, notes, an instant replacement of Russian oil volumes is impossible without the threat of fuel shortages and a sharp spike in prices on the Syrian domestic market.

Washington's Position and SST Status

A US State Department representative confirmed that Washington is calling on Damascus to cooperate with vetted corporate partners, especially American firms, in the process of rebuilding the country. It is expected that Syria will adhere to US sanctions against Russia.

At the same time, the American side made an important clarification: formally, there is no direct link between the removal of the status of a sanctioned country and the reduction of Russian oil imports. Nevertheless, during discussions, Washington received a commitment from Syria to sharply reduce purchases. US officials directly informed their Damascus counterparts: abandoning Russian oil would increase the chances of a quick and trouble-free cancellation of the SST status (Super 301 Trade Act / Special State of Terrorism — mentioned in the text as a sanction label active since 1979).

It is important to note that comprehensive sanctions were already lifted from the country after the overthrow of the Bashar al-Assad regime. The remaining SST status is the only major sanction label currently in effect against Syria.

New Players in the Market

The Syrian side responded to US offers with a readiness to create a branched network of energy supply. A representative of the Syrian energy sector told Reuters that Damascus is already looking for new suppliers and "radical changes" are expected.

The first steps in this direction have already been taken:

  • In July, the French oil company TotalEnergies discussed with Syrian authorities the possibility of signing a contract for the exploration of offshore fields.
  • In June, Syria concluded an agreement with ConocoPhillips and Novaterra to resume gas production.

Parallel to these events, other changes are taking place in the global market. Indian oil refineries, for example, have increased purchases of Russian crude oil, bypassing US sanctions through intermediaries. At the same time, after years of sanctions, the US is changing its approach to Syria: President Donald Trump stated his readiness to remove the country from the list of state sponsors of terrorism.