BEIRUT, Sept 02 (Reuters): As Syrian President Bashar al-Assad attempts to turn military success into postwar reconstruction, Western sanctions are a major obstacle that could scare off foreign companies.
Syria has suffered immense physical destruction, while millions of workers have fled, been conscripted or killed. A UN agency estimates the war has cost $388 billion.
Extensive reconstruction still looks far off. Assad's allies Russia and Iran, as well as China, have made some investments in the country, but they cannot afford the cost of rebuilding and want other countries to share the burden.
Western countries say they will not approve reconstruction funding for Syria, or drop sanctions, without a political settlement. Meanwhile, sanctions are making it hard for foreign companies to work there.
Although some have managed to do business in Syria, the wide scope of the sanctions and broad US powers to enforce them mean companies risk inadvertent breaches.
Most Western companies are steering clear. One that hopes for future work in Syria, German pipe manufacturer Ostendorf Kunststoffe, exhibited at an international trade fair in Damascus and is building relationships with potential customers.
However, it has not agreed any contracts yet and its local representative, Nabil Moughrabie, based in Beirut, said the company was waiting for the political climate to clear.
"We have obstacles. There isn't any direct shipping from Germany to Syria.
Meanwhile, Pope Francis on Sunday appealed to all parties who have influence in Syria to defend human rights and safeguard the civilian population in the rebel-held northern region of Idlib, which faces an imminent attack by government forces.
After seven years of civil war, the Syrian province of Idlib and surrounding areas are the last major enclave held by rebels opposed to Syrian President Bashar al-Assad, a close Russian ally.
A source has told Reuters Assad is preparing a phased offensive to regain the province.
"The winds of war are blowing and we are receiving troubling news about the risk of a possible humanitarian catastrophe in Syria, in the province of Idlib," Francis told thousands of people gathered in St. Peter's Square for his weekly blessing.
"I renew my heartfelt appeal to the international community and all the actors involved to use the tools of diplomacy, dialogue and negotiation to ensure the respect of international human rights and to safeguard civilian lives," he added.
