The 28-nation bloc said in a statement on Thursday that asset freezes and travel bans against 170 citizens of Belarus, including President Alexander Lukashenko, and three Belarusian organizations, are due to expire on Saturday.
It noted that the sanctions will be suspended for four months, allowing the EU to review progress after Lukashenko won elections earlier this month.
"This decision was taken in response to the release of all Belarusian political prisoners on 22 August and in the context of improving EU-Belarus relations," the statement said, adding, "The EU has reacted to this progress, encouraging further positive developments that would lead to an improvement of EU-Belarus relations."
However, an arms embargo against Belarus will remain in effect and four members of Lukashenko's security services will continue to remain under sanctions.
The developments come as the sanctions against Belarus, a close ally of Russia, had been criticized for their ineffectiveness.