Syria foreign currency reserves halve amid sanctions

PanARMENIAN.Net - Western sanctions on Syria have almost halved its foreign currency reserves and reduced oil production by 30 percent, costing Bashar al-Assad's government 400 million euros ($520 million) a month in revenue, French diplomatic sources said, according to Reuters.

Officials from almost sixty countries, including the European Union and the Arab League, meet in Paris on Tuesday, April 17 to discuss the efficiency of sanctions imposed on Syria to raise pressure on Assad to comply with a U.N.-backed peace plan.

Foreign reserves were estimated at $17 billion before the unrest broke out more than a year ago.

The European Union and United States have led the response to Syria's violence with a broad range of sanctions, which include a ban on Syrian oil imports to Europe and measures against the Syrian central bank.

Prior to EU sanctions Damascus sold 90 percent of its oil to Europe and with that market closed Syrian production has now fallen 30 percent. Sources estimate lost revenues at about 400 million euros a month, or a total $2 billion since November.

The Arab League has also slapped sanctions on Syrian VIPs, and recommended stopping commercial and passenger flights to and from Syria. However, unlike the EU, which imposes sanctions collectively, the Arab League imposes them individually and some states have been reticent in applying them.

Iraq and Lebanon, neighbours of Syria which have sensitive sectarian, strategic and trade relationships with Damascus, have declined to join the League's sanctions campaign. Jordan is also concerned sanctions will hurt its economy.