Canada Eases Comprehensive Sanctions Against Syria

On February 18, 2026, the Government of Canada announced significant amendments to the Special Economic Measures (Syria) Regulations (Syria Regulations), marking a substantial shift in Canada’s sanctions framework applicable to Syria.

These changes ease restrictions related to the import and export of goods, investment activities, and the provision of financial and other services, including the prohibition on providing financial services to non-listed persons in Syria.

The amendments also remove 24 entities and one individual from the Syria Regulations, enabling transactions with state-affiliated entities in key sectors critical to Syria’s recovery, including the Central Bank of Syria and other major financial institutions.

Background

Canada first imposed sanctions against Syria in May 2011 in response to the Assad regime’s violent repression of civilians. Those measures evolved into a comprehensive sanctions regime that significantly restricted trade, investment and financial dealings involving Syria.

Canada began to ease certain restrictions to facilitate humanitarian assistance and stabilization efforts following the collapse of the Assad regime in December 2024.

On February 27, 2025, the Minister of Foreign Affairs issued a six-month general permit (General Permit) authorizing a broad range of otherwise prohibited activities in support of democratization, humanitarian relief and reconstruction. The General Permit was extended in August 2025 and was set to expire on February 23, 2026.

With the coming into force of the February 2026 amendments, the General Permit is no longer required. Activities that were previously authorized on a temporary basis are now permitted on a permanent basis under Canadian law.

Key Amendments

Key amendments to the Syrian regulations are as follows:

• Broad sectoral restrictions are removed. These include prohibitions on the import and export of goods (with limited exceptions for certain chemicals), restrictions on investment activities, and limitations on financial and other services, such as those involving telecommunications monitoring and petroleum-related transactions.
• De-listing of major state, financial, petroleum and other commercial actors. The amendments remove sanctions against 24 economically significant entities to reduce barriers to economic activity and investment in Syria. De-listed entities include the Commercial Bank of Syria, major Syrian financial institutions, Syrian petroleum companies and Syrian Arab Airlines (also known as Syrian Air).
• New listing criteria for designated persons. While the amendments remove most sanctions against Syria, they also establish two new listing criteria under the Syria Regulations, allowing Canada to list and impose sanctions on individuals or entities who are (a) responsible for severe and widespread human rights abuses, or (b) whose actions threaten Syria’s peace, security and stability. Six individuals have been added to Schedule 1 of the Syria Regulations under these criteria.
• Sanctions against individuals and entities with ties to the Assad regime remain in place. Sanctions continue to apply to individuals and entities with close ties to the former Assad regime who were designated between 2011 and 2017. In total, 32 Syrian entities and 229 Syrian individuals remain sanctioned under Schedule 1 of the Syria Regulations.

Key Takeaways

The amendments to the Syria Regulations represent a significant recalibration of Canada’s approach to Syria and a significant reduction in legal barriers for Canadian businesses in dealing with Syria.

For more information, please contact the authors or any other member of our International Trade, Financial Services or Business Crimes, Investigations & Compliance groups.