US removes sanctions amid Syria transition
US President Donald Trump on Monday signed an executive order that terminates the majority of US sanctions imposed on Syria and associated designated persons, effective July 1. Lifting sanctions will represent in a significant opportunity for the ravaged Syrian economy. Sanctions against people and entities tied to the ousted Bashar Assad regime, terrorist organizations, and human rights abusers will remain in place.
Trump said the relief aims to facilitate "a united Syria that does not offer a safe haven for terrorist organizations and ensures the security of its religious and ethnic minorities." The order simultaneously directs the Secretary of State to "take appropriate steps" to advance policy objectives to support a "stable Syria."
The executive order has resulted in the Office of Foreign Assets Control (OFAC) removing Syrian sanctions regulations (31 Code of Federal Regulations, Part 542), and 518 persons designated under these regulations being taken off the sanctions list. Concurrently, 139 persons' designation was renewed to ensure "continued accountability for the former al-Assad regime and its abuses."
Key export controls and financial assistance limitations affecting the provision of services and investments by US businesses into Syria, mandated by the Syria Accountability Act and the Chemical and Biological Weapons Control Act, are to be waived.
Additionally, the executive order directs the Secretary of State to suspend “some or all” of the sanctions under the Caesar Act, which prohibits providing "financial or technological support" to the Syrian government. Section 301 of the act authorizes the president to suspend the act for up to 180 days, subject to various conditions such as the government "taking verifiable steps to establish meaningful accountability for perpetrators of war crimes in Syria and justice for victims of war." Beyond the 180 days, US congressional briefings will be required to establish a permanent revocation of the act. As of June 30, the Secretary of State is still deliberating on "the potential full suspension of the Caesar Act."
The executive order follows a broader trend of sanctions relief by Western countries in response to the fall of the Assad regime and the normalization of relations with the new transitional government. Human rights organizations have advised that sanctions would hinder the nation's reconstruction. In response, OFAC issued General License 25 earlier this year, which authorized many economic activities with Syria. The United Kingdom and the European Union have lifted a majority of their sanctions, resulting in the formation of “Syrian-foreign economic and business councils.”
While the Syrian government welcomed the relief, the United Nations has expressed the need for "genuine political inclusion" during Syria's political transition. Critics have recently questioned the "promise of real change" in the country after the establishment of an electoral process that does not allow for a direct public vote to seat the new People’s Assembly.
From JURIST, July 1. Used with permission.
See our last reports on the transition process in Syria, the Assad regime's crimes, and the Caesar Syria Civilian Protection Act.
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