The US Treasury Department lifted its comprehensive sanctions on Syria on July 1, more than two decades after they were imposed. The decision does not include Bashar al-Assad and his network involved in human rights abuses and Captagon smuggling.
According to a new clarification issued by the Office of Foreign Assets Control (OFAC), the executive order issued by the US President on June 30 lifted the entire sanctions program on Syria and removed all Syrian financial institutions from the "Specially Designated Persons" list, including the Central Bank of Syria.
US banks are now permitted to establish direct financial relationships with their Syrian counterparts and open correspondent accounts, including with the Commercial Bank of Syria, provided none of the parties are on the existing sanctions lists.
No Special License Required for Food and Medicine Exports
OFAC clarified that the export or re-export of food and medicine to Syria no longer requires a special license, with the US Department of Commerce retaining jurisdiction over most types of exports.
Some previous restrictions related to the Syria Accountability Act and the Chemical and Biological Weapons Act have also been waived.
Continued Operation of General License 25
The Department confirmed that General License 25 remains in effect, authorizing transactions previously prohibited under the Syria program, as well as transactions with certain individuals covered by other sanctions programs.
Termination of Previous Executive Orders
The revocation included six executive orders that had formed the legal framework for Syria sanctions since 2004:
- EO 13338
- EO 13399
- EO 13460
- EO 13572
- EO 13573
- EO 13582
Thus, the Syria sanctions program was fully terminated, and its associated regulations were removed from the U.S. Code of Federal Regulations. However, prior violations remain subject to investigation or accountability.
Strengthening the prosecution of Assad and Captagon smugglers
Despite the cancellation of the program, the US administration amended Executive Order 13894 to strengthen the prosecution of Bashar al-Assad and his associates, particularly those involved in drug trafficking and human rights abuses. 139 individuals previously included in the program were reclassified under new authorities.
With this decision, Syria enters a new phase in its economic relationship with the United States, amid major questions about the impact of the move on the country's financial situation and the role of the new government in managing the cautious transition from isolation to openness.
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