The economic sanctions imposed against Syria are putting more and more pressure on the Al-Assad regime, writes Bassel Oudat in Damascus When Europe and the US imposed economic sanctions against Syria nearly six months ago, the Syrian government downplayed their effects, saying that the country would not be affected by the sanctions in any way. However, eight months after the uprising in Syria began, the truth could not be more different. The European and US sanctions were imposed from mid May onwards against the Syrian regime and a number of its leaders in order to block its financial resources and to send a message that the international community would not stand by and watch the violence being used against the country's civilians. Western sanctions have included a ban on exporting weapons to Syria, monitoring shipments going to the country, halting sales and imports of Syrian oil and byproducts, suspending insurance for transactions, and banning European and US companies from making new investments in Syria's oil sector. The EU has suspended the printing of Syrian currency in the EU, blocked investment and development aid, frozen training programmes in the country, and instructed the European Investment Bank to halt funding of infrastructure projects. Nearly 80 Syrian officials have been blacklisted by the EU and the US and their assets frozen. The officials include Syrian President Bashar Al-Assad, as well as the country's vice-president, prime minister, ministers of defence, information, interior and foreign affairs, the president's adviser, the directors of various intelligence departments, and businessmen accused of funding the repression of civilians. Sanctions have also been imposed on some 20 institutions and companies connected to the regime, including the main Syrian mobile phone provider and the Al-Shams Holding Company, owned by Al-Assad's cousin, as well as the Al-Dunia television station owned by people close to Al-Assad's brother. The Syrian state oil company, state-owned Syrian Trade Bank, and companies and institutions connected to the Syrian army have also been affected. Other western countries including Canada, Australia and Switzerland have followed the US and European lead by imposing similar sanctions against the Syrian regime, while Turkey has closed its air space and waterways to vessels carrying military equipment to Syria. Qatar has frozen investment projects in Syria valued at billions of dollars. Syrian officials have argued that the country can bypass such western and other sanctions by looking towards Asia and Africa, the country selling oil to Russia and China and replacing the US dollar and euro with rubles and yuan. Syria is also said to be receiving funding from Iran. However, signs of economic difficulties have begun to emerge, with the cost of commodities rising by 25-50 per cent on the Syrian market in recent months and the tourist market being entirely destroyed by the troubles in the country. Nearly two million Syrians rely on tourism for their livelihoods, and it represents 12 per cent of the country's national income. Shortages of fuel indicate the beginnings of serious difficulties for the population with the onset of winter, and electricity is now being rationed in some towns and districts to only a few hours a day. Imports have dropped by nearly 75 per cent, while trade with Europe, which had peaked at 12 billion euros, has shrunk starkly over recent months. Syrian oil exports have been paralysed by the decision of EU countries to boycott the country's oil, these countries having previously purchased 95 per cent of Syria's oil, representing 30 per cent of the country's income. According to economic sources, no buyers have emerged to make up for the loss of European purchasers, and Russian companies registered on the New York stock exchange do not want to risk purchasing Syrian oil because of the US sanctions. International oil companies like Total and Shell have suspended operations in Syria, and the Syrian government has stopped paying for oil produced by these companies in the country, seeking instead to barter crude oil as a means to circumvent the sanctions. In the country's banking sector, all credit card transactions have been suspended, as have bank transfers from and to Syria. Syrian securities can no longer be sold via international banks, and the government has spent more than $2 billion in attempts to shore up the Syrian pound after it depreciated by 10 per cent against the dollar on the black market. In response to the investment freeze, state-owned companies have suspended projects until the end of the year, and only vital ones will now be implemented. In addition to action taken by the European Investment Bank, Germany's KfW bank has frozen an agreement to fund investment in the water sector, leading to the suspension of dozens of government infrastructure projects. The private sector has also been affected by the sanctions, with many businesses closing their doors or firing non-essential staff. Economic sources estimate that the number of people dismissed from their jobs since the beginning of the uprising to stand at 80,000, adding that a large number of Syrian businessmen are believed to have been trying to relocate outside Syria. Observers expect that Syria will soon be forced to apply for foreign assistance to help shore up the economy and pay the salaries of the country's nearly two million civil servants. After recent attacks on Turkish diplomatic missions in Syria by pro-regime supporters, Turkey suspended cooperation at six oil wells in the country operated by Turkey's state-owned oil company. Ankara also said that it would consider halting electricity supplies to Syria if the current crackdown continued. Last week, the Arab League threatened to impose economic sanctions against Syria if Damascus did not comply with the Arab peace initiative designed to end the security crackdown in the country. At a meeting of Arab foreign ministers in the Moroccan capital Rabat, the organisation asked experts to draft economic sanctions against Syria that analysts believe could be more effective than the political ones currently imposed on the country, including suspending Syria from membership of the League. Arab markets, especially in the Gulf, are major destinations for Syrian goods, while Syria relies on Arab states to fulfill its basic needs for foodstuffs such as rice and sugar. Syrian exports to Arab countries amount to 53 per cent of all the country's exports, leaving EU markets in second place at 30 per cent. If the Arab countries implement the economic sanctions drawn up by the Arab League, Syria will lose its two top export markets, shutting down 83 per cent of the country's exports. Meanwhile, Damascus has insisted that the sanctions against it are illegal, and it has urged the Syrian population to endure any hardships arising from them. The Syrian opposition and the protesters against the Al-Assad regime support economic sanctions against Syria in order to weaken the regime and force it to end the crackdown on the demonstrators, withdraw security forces from the field, release tens of thousands of prisoners and agree to negotiate the transition to a democratic system. The economic sanctions should target the regime and its leaders and supporters, opposition spokesmen have said. "The unequal distribution of national wealth in Syria has put pressure on the middle and poorer classes," Bassam Al-Malek, a businessman, member of the Damascus Chamber of Commerce and leading opposition figure, told Al-Ahram Weekly. "This pressure has led to a popular uprising that was also fueled by political conditions. The deteriorating economic conditions are the fundamental reason for the uprising, but the Syrian people will be willing to withstand further economic hardships if this will rid them of the current regime." "Syria is richer than some oil-producing countries, and it has many resources such as oil, gas, phosphates, cotton, agriculture, textiles and chemicals, along with tourism and others. The opposition believes that these resources are being used to line private pockets and not to benefit the population as a whole," he said.
