The United States administration under President Donald Trump on Friday granted Syria comprehensive exemptions from US sanctions, a development aimed at fulfilling a pledge to lift decades-old restrictions on the country, which has experienced conflict for more than 14 years.
The Syrian government in Damascus welcomed the decision, describing it as an initial phase in implementing President Trump’s commitment to lift sanctions. This commitment was reportedly made at the Saudi-American Investment Forum in Riyadh approximately two weeks prior. Damascus stated the move was “a step towards alleviating the humanitarian and economic suffering” of the Syrian people.
A directive from the US State Department on Friday nullified a range of stringent sanctions imposed by Congress in 2019. It also suspended, for a period of six months, a US Treasury Department measure that applied sanctions to any individual or entity dealing with a specified group of Syrian individuals and entities, including the Syrian Central Bank.
Details of Six-Month Exemptions and Sanctions Lifted
In a related move, the US Treasury Department announced the lifting of sanctions on Syrian President Ahmed al-Shara and his Interior Minister Anas al-Khattab. This followed the issuance of General Licence No. 25 (GL 25), which provides for the immediate easing of sanctions on Damascus and permits previously prohibited transactions.
The licence, issued by the Treasury’s Office of Foreign Assets Control (OFAC), specifically lifts sanctions on the Syrian Central Bank, Syrian Arab Airlines, the Radio and Television General Organisation, and the ports of Latakia and Tartous, alongside other individuals and entities. General Licence 25 was issued to provide immediate sanctions relief, consistent with President Trump’s declaration to cease all sanctions imposed on Damascus.
A US Treasury Department statement indicated that GL 25 authorises transactions previously barred under Syrian sanctions regulations, effectively lifting these sanctions. It also aims to stimulate new investments and private sector activity, which is in line with President Trump’s “America First” strategy.
US Secretary of State Marco Rubio said in a statement that he had “issued a 180-day waiver from sanctions imposed on Syria under the Caesar Act to ensure that sanctions do not hinder investments and to facilitate the provision of electricity, energy, water, healthcare, and humanitarian relief efforts.” Rubio added, “Today’s moves represent the first step in realizing the President’s vision for a new relationship between Syria and the United States,” noting that Trump “made it clear that he expects that the easing of sanctions will be followed by action from the Syrian government.”
These developments coincided with Washington’s announcement that Thomas Barrack, US Ambassador to Turkey, assumed the role of Special Envoy to Syria on Friday.
Background on US Sanctions Policy
US sanctions on Syria have historically been multifaceted, encompassing legislation passed by Congress, executive orders from the President, measures imposed by the Treasury Department in consultation with the State Department, and prohibitions on non-humanitarian trade between Damascus and Washington. Additional sanctions were aimed at deterring third countries from engaging in business with Syria.
Sanctions on the Syrian Central Bank reportedly persisted even after the fall of former President Bashar al-Assad’s regime. These measures prevented the Syrian financial system from accessing global banking networks and hindered efforts to revive the Syrian economy through international financial channels. Congressional sanctions, notably the “Caesar Act,” were designed to isolate Syria’s former leadership by barring anyone conducting commercial transactions with them from the global financial system. These sanctions also specifically impede post-war reconstruction. While they can be waived for 180 days via executive order, the Associated Press reported they could likely be reimposed after six months.
Economic Reconstruction and Conditions for Further Relief
The new US licence encompasses the lifting of sanctions on the Commercial Bank of Syria, the Syrian Gas Company, and the Syrian Petroleum Company, in addition to the General Organisation of Radio and Television, the General Company for the Port of Latakia, and numerous banking and logistical institutions. The Treasury stated that this authorisation is intended to support the reconstruction of the Syrian economy, its financial sector, and infrastructure, in line with US foreign policy objectives. Attracting new investment to Syria and supporting the new Syrian government are deemed essential for this purpose, with GL 25 facilitating previously restricted economic activities.
According to Associated Press, the US State Department last week outlined a three-stage roadmap for further sanctions relief. This begins with an initial temporary and partial easing, contingent upon Syria meeting comprehensive conditions for any future, more permanent, easing or lifting of sanctions.
Conditions for reaching the second stage include the removal of Palestinian factions from Syria, the new government assuming control of detention centres holding “ISIS” fighters, and the integration of the US-backed Kurdish force (Syrian Democratic Forces, “SDF”) into the Syrian army.
To reach the third stage, the US administration requires Syria to join the Abraham Accords, normalising relations with Israel, and to provide evidence of the destruction of chemical weapons allegedly possessed by former President Bashar al-Assad’s regime.
Syrian Government Reaction
On Saturday, the Syrian Foreign Ministry formally welcomed the US government’s decision. In a statement published on its “X” (formerly Twitter) platform account, the Ministry acknowledged the “issuance of an exemption from mandatory sanctions under the Caesar Act and the circulation of General License No. 25 concerning Syria (GL 25).” It described the decision as “a positive step in the right direction to alleviate the humanitarian and economic suffering in the country.”
The Ministry affirmed that Damascus “extends its hand to all who wish to cooperate on the basis of mutual respect and non-interference in internal affairs,” believing that “dialogue and diplomacy are the best way to build balanced relations that achieve the interests of peoples and enhance security and stability in the region.”
The statement continued: “Syria also expresses its appreciation to all countries, institutions, and peoples that stood by it, and affirms that the next stage will be a stage of rebuilding what the former regime destroyed and restoring Syria’s natural position in the region and the world.”
Earlier this month, Syrian Foreign Minister Asaad al-Shaibani reported an agreement to form rapid technical teams following President Trump’s sanctions-lifting announcement in Riyadh.
European Union Considers Parallel Sanctions Review
Following the US move, EU foreign policy chief Kaja Kallas last week proposed a further easing of European sanctions on Syria. This would allow funding for Syrian ministries in areas such as reconstruction and migration.
A document dated 14 May, seen by Reuters, indicated the EU would permit member states to finance Syrian Ministries of Defence and Interior for cooperation on reconstruction, capacity building, counter-terrorism, and migration. A special clause would also grant EU member states greater flexibility in dealing with Syrian state-owned entities concerning the destruction of chemical weapons.
The new EU proposal would lift sanctions on the Commercial Bank of Syria while maintaining measures against individuals linked to the former Assad administration. EU foreign ministers are scheduled to discuss relations with Damascus at a meeting in Brussels this week, including the potential lifting of sanctions on the Syrian Central Bank.
Germany, Italy, the Netherlands, and Austria circulated a joint paper advocating for the removal of sanctions on the Syrian Central Bank and its financial institutions. “The goal is to provide additional space for socio-economic recovery,” the four nations wrote.
The EU has already eased some energy, transport, and reconstruction-related sanctions, along with associated financial transactions. However, certain member states are pushing for more extensive relief to facilitate Syria’s transition process.
