Jana al-Issa | Khaled al-Jeratli | Hassan Ibrahim | Amir Huquq
The announcement by US President Donald Trump to lift the sanctions imposed on Syria marks a historical event, under which these sanctions, imposed by Washington in multiple decisions over the past 46 years during the era of Hafez al-Assad, will end directly or gradually.
The lifting of the sanctions, which the new Syrian administration has been aggressively pursuing diplomatically since taking over after the fall of the ousted regime on December 8, 2024, could elevate the country to much better levels than it currently suffers under, not only economically and in terms of living and production, but it may also reflect politically on its relationships with many nations, opening the door to partnerships that could change its destiny.
As a result of the ousted regime’s military actions against the people who began demanding freedom in 2011, the United States imposed sanctions on governmental institutions and prevented transactions with them. The Syrian people paid a heavy price, suffering far more than the regime itself and its fronts and leaders. Recent statistics indicate that the poverty rate has risen from 33% before the war to 90% currently, with the extreme poverty rate at 66%.
Lifting the sanctions at this time should improve the economic and service situation and will serve as a gateway leading the country toward positive change, whether in the near future or in the long run.
In this report, Enab Baladi seeks to highlight the impact of lifting sanctions on Syria and analyze the legal situation of the sanctions imposed for decades, while referencing the new political circumstances that Syria may face in the future within the framework of the US conditions imposed in exchange for lifting the sanctions.
A complex system: The lifting process requires monthsFor many years, US sanctions on Syria have been among the most complex, intertwined, and enduring pressure tools in US foreign policy. They have evolved over the years to become mechanisms aiming to completely isolate the Syrian regime politically and economically, beginning with the first sanctions in 1979 when Syria was placed on the list of “state sponsors of terrorism.”
US sanctions have diversified over the years, targeting specific individuals (individual sanctions) and sectors such as oil, energy, and construction (sectoral sanctions), along with sanctions imposed through presidential executive orders and legislative actions, most notably the Caesar Act, which took effect in 2020 and expanded targeting to include the regime’s external supporters.
The sanctions file is notably complex due to its intertwining with international issues, such as combating terrorism, preventing human rights violations, preventing the proliferation of nuclear and chemical weapons, and regional security. Their effects have not only been felt by the regime but have also extended to the daily economic and humanitarian lives of Syrians.
Syrian President Ahmed al-Sharaa, US President Donald Trump, and Saudi Crown Prince Mohammad bin Salman in Riyadh – May 14, 2025 (Syrian Presidency)
The US administration is in dilemma
Trump’s announcement to lift sanctions on Syria surprised officials in the US Treasury and State Departments as well as some members of his administration, leaving them in a state of confusion. Senior officials in both departments believe that lifting them will be complicated and will take months, according to reports from Reuters.
Sanction lifting is rarely direct and often requires close coordination between multiple different US agencies and Congress. This poses a particular challenge in the case of Syria due to the multiple measures that isolate it from the international banking system and prevent many international imports.
Edward Fishman, a former US official and author of “Chokepoints,” told Reuters that lifting sanctions imposed on Syria, which were enacted through a mix of executive orders and laws, could take months. However, he noted that the US Treasury Department has prior experience in easing sanctions on Iran under the 2015 nuclear agreement.
What complicates the task further are the sanctions imposed under the Caesar Act, as revoking the legislation requires an action from Congress. Nonetheless, it includes a clause allowing the president to suspend sanctions for national security reasons. Trump could also issue a General License to suspend some or all sanctions, according to Reuters.
Fishman remarked that he would be surprised if all sanctions were lifted as part of Trump’s order, adding that some individuals or entities in Syria who had been sanctioned for specific behaviors, such as supporting a terrorist group, might not be removed from the sanction list.
Presidential and legislative sanctions based on emergency cases
A source from the US State Department told Enab Baladi via email that the United States is still monitoring Damascus’s response to the specific measures previously laid out by Washington, adding that easing sanctions aims to achieve stability in Syria and push it towards peace.
The source mentioned that the US has already taken initial steps towards restoring normal relations with Syria, through meetings with “temporary authorities.”
Moreover, no timeline information is currently available regarding when to begin lifting sanctions.
The official said, “We have requested the interim Syrian authorities to take specific and detailed measures to build trust. We continue to assess their response.”
The former Syrian diplomat Bassam Barbandi noted that US sanctions on Syria are varied, including presidential (issued by the US president), totaling eight major executive orders that have been issued by US presidents to impose sanctions on Syria from 2004 to 2019.
Presidential sanctions encompass most of the economic sanctions on Syria and are imposed through “executive orders,” allowing President Trump to lift or freeze these sanctions immediately without needing to refer to Congress, as Barbandi reported.
He added that there are also legislative sanctions, which are laws passed by Congress like the Caesar Act, which are more complex because they cannot be lifted solely by the president, requiring the US administration to demonstrate to Congress that Syria has met the conditions set forth in the law itself.
Barbandi pointed out that many sanctions are based on a “national emergency” status that is renewed yearly, and if the president does not renew them, some sanctions could be lifted after six months, allowing for a partial easing of the economic burden even if the law itself is not repealed.
According to Barbandi, Trump can revoke the executive orders that imposed economic sanctions, issue extraordinary licenses to facilitate transfers or imports, and amend certain clauses to ensure that the lifting of sanctions does not include individuals and companies accused of committing crimes against humanity, and could suspend the application of sanctions if the national emergency is not renewed.
However, the US president will only be able to lift the sanctions tied to the Caesar Act if the conditions requested by Congress are met, but he can cancel some of its provisions, according to Barbandi.
“Gradual lift” dependent on Syrian response
Former advisor at the US State Department, Hazem al-Ghabra, stated to Enab Baladi that the sanctions file is complicated, and lifting them takes time, noting that any lifting will be gradual, scheduled, and cumulative. The tools available to President Trump and the US government today are “licensing,” a method to suspend sanctions by allowing companies to operate in sectors of Syria that are subject to sanctions.
Al-Ghabra added that a significant portion of these sanctions is covered by laws, some of which date back to the 1970s. There is a need to work towards issuing new laws, which will take time and discussions within the corridors of the US administration. What Trump will do is work to suspend the sanctions until they can be lifted legally and officially in the future.
He continued that the matter is contingent on the Syrian government’s responsiveness and ability to adhere to at least the broad lines agreed upon by both parties in the forthcoming phase, and through collaboration with Saudi Arabia and Turkey, which are viewed as aiding nations that will try to work with the Syrian government to help it reach an advanced stage, far from returning to sanctions.
Al-Ghabra pointed out that the current thinking in Washington is to grant a two-year license, with reviews every six months, which will be amended as needed, while working with the US Congress to lift the sanctions officially through legislation.
We will see a lot of movement today after the green light given by President Trump to the new Syrian government, but the process is not as simple as it seems; there is ongoing review and required points from the Syrian government in various fields.
Hazem al-Ghabra – Former advisor at the US State Department
US military patrol in oil fields in northeastern Syria – September 3, 2024 (AFP/Daleel Suleiman)
Conditional approach: Gains in any basketIt is agreed that Trump’s announcement regarding lifting sanctions came with conditions, and Washington has been clear in this regard, as it demanded several political issues from Damascus. However, questions arise regarding Syria’s ability to negotiate under such terms.
A tweet from Karoline Leavitt, assistant to the president and White House press secretary, clarified what happened after the meeting between President Donald Trump and the transitional Syrian President Ahmed al-Sharaa, emphasizing the conditions set by the US for normalizing relations with Damascus.
Leavitt, who accompanied Trump in Saudi Arabia, stated via “X,” immediately after the meeting, that President Trump encouraged President al-Sharaa on five key issues:
Signing Abraham Accords with Israel. Asking all foreign “terrorists” to leave Syria. Exiling Palestinian “terrorists.” Helping the US prevent the return of the Islamic State group. Taking responsibility for detention centers holding elements of the Islamic State in northeastern Syria.What Leavitt reported about Trump did not stray from the conditions that the US has presented to Syria since the fall of Bashar al-Assad, but the meeting between the two presidents reflected Washington’s insistence on them and Damascus’s acceptance.
Syria “in a position of strength”
Since the fall of the regime, lifting sanctions has been the primary and essential demand of Syrian diplomacy. Syria has celebrated widely after Trump’s announcement lifting the sanctions, granting Syria “a new opportunity.”
The counterpart proposed by Washington is considered by Middle East and North Africa affairs expert Michael Arizanti to have placed Syria in a strong position to progress, noting that the surrounding parties to Syria now must prove their readiness for peace, de-escalation, and regional reintegration, referring to Israel.
Arizanti stated to Enab Baladi that the al-Sharaa administration has shown a clear interest in normalization, even joining the Abraham Accords, describing it as “a significant and brave shift” considering the history.
He noted that the problem lies not in Damascus but in the political climate in Israel, asserting that the motivations of Netanyahu’s leadership are based on security demands and internal political survival rather than genuine interest in long-term peace.
The expert believed that Israel is likely to demand “extreme preconditions,” such as full alignment with its policies regarding Iran and permanent control over the Golan Heights. He predicted that Syria would view these demands as disregarding its sovereignty, making true normalization more difficult, while Syria is extending its hand.
Expulsion of foreigners
The expulsion of foreign fighters from Syria formed the second of the US conditions, encompassing jihadists who fought in opposition factions and Palestinian factions that had been supported by the ousted regime for five decades.
Arizanti considered this step to be in Syria’s interest, highlighting that the new government has all the incentives to “clean house,” particularly concerning internationally recognized jihadist groups like the Islamic State and al-Qaeda.
He noted that such a step would enhance legitimacy, move the country closer to easing sanctions, and increase regional confidence. However, the challenge lies in executing this without destabilizing local stability.
Looking at the broader picture, the expert believed that no one stands to gain more from removing these elements than Syria itself, making it one of the most strategic gains for Damascus if achieved.
The new leadership seeks to distance itself from that legacy, and exiling fighters loyal to Tehran or attempting to destabilize Syria reinforces Damascus’s position.
It is a smart and low-cost move that weakens Iranian influence and reassures skeptical neighbors. Unlike other demands, this step aligns perfectly with Syria’s security and diplomatic goals, and it is already in progress, making it one of the easiest gains in the overall context, according to Arizanti.
Preventing the return of the Islamic State
Simultaneously with the political developments coming from Syria, the Islamic State group is signaling its assassination cells and targeting operations through explosive devices from eastern Syria, intensifying its operations despite the International Coalition’s activities against it in the region, amid official and UN warnings of the resurgence of the group’s activity, which continually attempts to regain strength.
Arizanti believed that the Islamic State complicates matters, adding that Western policymakers need to be honest with themselves regarding this step.
He told Enab Baladi that Syria is already cooperating with Jordan and Turkey to secure its borders and confront the threats posed by the group.
However, the “elephant in the room” problem lies with the US-backed Syrian Democratic Forces (SDF), which the Syrian government is trying to integrate into its forces to end its dominance in the region, considering it has become a “quasi-independent” entity supported from abroad, controlling parts of Syrian territory.
The Syrian Democratic Forces have become a quasi-independent entity supported from abroad operating within Syrian territory, and they cannot remain an alternative authority. If Syria is expected to lead a national campaign against the Islamic State, the US and the European Union must stop pretending that the SDF model is sustainable.
Michael Arizanti, Middle East affairs expert
The expert believed that the real solution lies in integrating the SDF into the Syrian army under mutually agreed conditions or ending its administrative independence, as allowing it to operate outside Damascus’s authority will lead to “tearing Syria apart and prolonging the crisis,” which applies to the issue of managing Islamic State detention facilities.
US President Donald Trump meets with Syrian President Ahmed al-Sharaa in Riyadh, Saudi Arabia – May 14, 2025 (Saudi Press Agency)
Steps hiding conditions
The historic meeting between Syrian President Ahmed al-Sharaa and Donald Trump marks a new chapter in Syrian-American relations, going beyond mere diplomatic communication to open up contentious files related to steps mentioned by Washington, as well as others not officially announced.
Middle East expert Eva Koulouriotis stated to Enab Baladi that Washington’s conditions are more numerous than those mentioned during the Trump-Al-Sharaa meeting, as the United States began early on sending messages of cooperation, and Syria began implementing these steps immediately.
Koulouriotis noted that the American conditions do not only include the five mentioned, but also other files that the new Syrian administration has dealt with and has started to implement, including:
Ending Iranian influence in Syria. Fighting the production and export networks of Captagon. Preventing the supply of weapons to the Lebanese Hezbollah. The file of missing Americans, especially journalist Austin Tice, where American-Qatari teams have begun search operations.The expert added that Syria is indeed capable of fulfilling Washington’s conditions with Arab and international support, highlighting the importance of the completion of the US withdrawal from eastern Euphrates to enable Damascus to achieve full control over the prisons of the Islamic State group.
Regarding Palestinian factions, Koulouriotis pointed out that the Popular Front – General Command has suspended its activities, and part of its leadership has moved to Lebanon, while arrangements are underway to transfer the leadership of Islamic Jihad Movement to Iran and Iraq.
Stability is conditional on partnership
Since the fall of the regime, Washington has adhered to eight conditions, five of which were mentioned in the Trump-Al-Sharaa meeting, but three others were not mentioned by US President’s Assistant, Karoline Leavitt, including the protection of minority rights in the country and the formation of a representative government.
Researcher at the Omran Center for Strategic Studies, Maan Talaa, considered that managing internal files is the biggest challenge, despite Syria’s success in repositioning itself externally.
He added to Enab Baladi that Syria has sent clear messages from the very beginning that it will not be a battleground for regional conflicts, but an active party in local stability through returning to its Arab surroundings, reflecting its Islamic and Arab identity.
At the same time, Talaa warned of the complexities of the internal scene, stating that “the economic, political, and social challenges require a new social contract, comprehensive national dialogue, programs for the return of refugees, achieving transitional justice, and reconstruction, all of which need a cohesive legal and local structure.”
He believes that “Syria’s success in facing challenges does not come only through the state but through the community’s engagement in decision-making, monitoring, and implementation,” adding that “partnership, not muhasasa, is the guarantee for building the state.”
Regarding international relations, Talaa believed that any international opening built on stability will positively reflect on Syria, downplaying the notion that these relaxations would end Israeli violations in the near term, but considers it a pathway to strengthening Arab decision unity, which could deter some of those interventions in the future.
He added that today Syria stands before a phase titled “accumulation of trust,” not resolution, and the idea of peace in the region requires a cohesive internal climate from which external decisions can emanate, according to his expression.
Researcher Talaa indicated that any opening in international relations based on the principle of stability will naturally reflect positively on Syria, emphasizing that Syria today needs to lift the siege and sanctions to kickstart the wheel of development and recovery, as well as needing positive relations with neighboring countries, because its internal entitlements require a focus on the domestic front, not engaging in regional conflicts that could hinder this focus and negatively impact it.
As for the strategic files expected to emerge from these relations, such as the file concerning relations with the Zionist entity or Syria’s engagement in the regional security system, Talaa considered that they will be subject to local discussions, suggesting that the Syrian position will ultimately align with the general Arab position, but this will not end Israeli aggressions in Syria, as there is still no final American-Syrian agreement.
When internal entitlements are accomplished with a participatory vision that enhances Syrian unity and social cohesion, this will positively reflect on the making of foreign decisions and serve the equation of security and stability in the region.
Maan Talaa, Political researcher
US President Donald Trump meets with Syrian President Ahmed al-Sharaa in Riyadh, Saudi Arabia – May 14, 2025 (Saudi Press Agency)
Economic recovery looks promising… Awaiting stepsUnlike the complexities of the political scene, the economic file appears clear following the lifting of sanctions on Syria, which today suffers from a lack of investments, making it an attractive target that sanctions previously obstructed.
The restoration of commercial and economic dealings externally with official institutions or through individuals is expected to activate the economic life cycle that had been gasping for breath for years.
Economic researcher Mulham al-Jazmaty clarified that in the short term, there will be no significant impact from lifting sanctions until the executive procedures for the legal mechanism for lifting them become clear.
Executive Advisor for Planning and Follow-Up at the Syrian Ministry of Economy and Trade, Dr. Razi Mohialdeen, stated to Enab Baladi that the anticipated positive effects of lifting sanctions on Syria remain contingent upon how all components of Syrian society, including government, private sector, civil society, and intellectual and economic elites, engage in implementing recovery and development programs. The more harmonious and integrated the performance, and the more partnership between these components in formulating and executing policies, the faster and more sustainable the positive outcomes.
As for expectations, Dr. Mohialdeen believes that in the short term (6-12 months), the following is expected:
Improved liquidity, as freeing banking restrictions would enable local banks to conduct transfers and import raw materials and medicines more easily, reducing pressure from a shortage of essential goods. A decrease in funding costs: lifting sanctions reduces fines and fees for correspondent banks, which will reflect on interest rates and stimulate lending to the private sector. Revitalization of trade exchange: the resumption of international banking relations accelerates the import and export of goods, swiftly rejuvenating some production sectors.In the medium term (1-5 years), a significant improvement is expected in several key points, notably:
Attracting foreign direct investment: investors’ confidence will rise with the country’s financial and commercial opening, leading to capital flows into infrastructure, industry, and tourism sectors. Economic diversification: The freedom to access global markets encourages the development of new sectors (logistics services, information technology, advanced agriculture) instead of relying on imported consumer goods. Sustainable growth and job creation: As the economic climate improves and commercial activities expand, demand for local labor will rise, reducing unemployment rates.Despite the promising economic opportunities that lifting sanctions may carry, a rapid and unregulated opening to global markets could pose real challenges, especially to the local industrial sector, particularly small and medium enterprises that still suffer from weak infrastructure and lack of adequate protection and support.
Without prudent governmental policies to protect these industries from dumping and unfair competition, we may face a wave of closures and the loss of thousands of job opportunities, which would contradict the objectives of development and recovery.
Gradual opening, tied to plans for industrial reform and local production modernization, is essential to achieve a balance between capitalizing on opportunities and mitigating potential risks.
Dr. Razi Mohialdeen, Advisor at the Ministry of Economy in Syria
Sectors recovering
Regarding the prominent sectors that will recover following the implementation of the removal of sanctions on institutions, Mulham al-Jazmaty confirmed to Enab Baladi that all sectors will witness positive improvement, primarily the banking and energy sectors. Lifting the sanctions will enable many friendly countries to provide financial grants to the Syrian government or deposit funds in the Central Bank of Syria.
Dr. Razi Mohialdeen mentioned five sectors that will gradually recover, primarily represented as follows:
Banking and Financial Sector: Resuming relationships with correspondent banks will revitalize international transfers and reduce credit costs. Manufacturing Industries (Chemicals and Pharmaceuticals): Providing raw materials and foreign technology will accelerate their production and export capacity, especially as the state of national peace improves. Agriculture and Grain Products: Importing agricultural inputs (fertilizers and machinery) will have an immediate benefit on production and improve food security. Energy (Oil and Gas): The possibility of signing new partnership contracts with international companies will increase production and generate additional governmental revenue. Tourism and Travel: Lifting the ban on transactions allows foreign travel companies to resume their programs to Syria, revitalizing hotels and associated services.Funds awaiting recovery
Regarding the fate of frozen funds in American bank accounts, al-Jazmaty stated that this file requires several technical steps before obtaining them, the most important of which is the approval of the US Treasury Department, followed by reconnecting the Central Bank of Syria to the SWIFT system, and then the necessary international political coordination.
Dr. Razi Mohialdeen believes that the frozen assets are subject to a bundle of American and international laws and regulations and will not be released automatically once the sanctions are lifted. He pointed to several potential mechanisms for recovering them.
These mechanisms include bilateral agreements and technical banking settlements between the Syrian government and the entities restricting the assets, or through reevaluating blacklists according to Syria’s compliance with the conditions for lifting sanctions (for instance, in the anti-money laundering or anti-terrorism file), in addition to international legal mechanisms through institutions like the International Court of Justice, or by means of international resolutions that clarify the jurisdiction for returning the assets to the Central Bank.
Recovering all assets may take several months to a few years, and they are expected to be gradually deposited into the Central Bank’s accounts after meeting the legal and technical criteria.
Dr. Razi Mohialdeen, Advisor to the Ministry of Economy in Syria
Workers at the Tadco Paints Factory – May 12, 2025 (General Directorate of Industry/Telegram)
Optimistic industrialists… Necessary proceduresThe industrial sector is among the most negatively affected by American sanctions, particularly regarding the inability to import raw materials, rising production costs, and a significant decline in exports, as the markets for industrial products have vanished.
The industrial sector represents one of the pillars of the Syrian economy and its most important foundations; therefore, lifting the sanctions will constitute a critical point in reinstating the Syrian industry and its contribution to the recovery of the national economy.
Taysir Derklet, President of the Al-Arqoub Industrial Committee and Vice President of the Engineering Sector Committee in the Aleppo Chamber of Industry, told Enab Baladi that the decision to lift sanctions on Syria will positively reflect on political, social, and economic trends, particularly the industrial sector, as the sanctions were unjust against industrial production.
The impact of lifting sanctions on the industrial sector initially manifests in production inputs, as raw materials for some industries that were previously prohibited from importation will become available. He added that the file for exporting Syrian industrial products will flourish, opening markets for their sale, and there will also be the creation of freedom of money transfer for industrialists.
A vital opportunity
Talal Qalaaji, a member of the Damascus and Rural Damascus Chamber of Industry, stated to Enab Baladi that sanctions have long shackled the industry, forcing Syrian industrialists to be creative in finding ways to continue production despite all the unjust laws issued by the former regime, which increased obstacles and further besieged industrialists.
Qalaaji emphasized that lifting sanctions on Syria will return it to the global financial and commercial systems, enabling it to communicate with foreign markets and open new markets for Syrian industry, along with lowering production costs and improving the quality of industry by easily importing raw materials from any country worldwide.
He considered that lifting sanctions is a vital opportunity for the economic recovery of Syrian industry and opens a real phase for reconstruction, which requires raising the industrial production capacity to meet the high demand that will arise from this phase.
Necessary procedures
Industrialists agree that the government must capitalize on the decision to lift sanctions, improve the industrial sector, and remove the obstacles that limit production capacity.
Taysir Derklet pointed to the importance of studying the reduction of production costs and amending some laws that hinder the abilities of industrialists, starting with fuel prices. The tax system must also be fair and just for industrialists.
For his part, industrialist Talal Qalaaji believes that the Syrian industry will transition from a difficult phase to one in which the industrialist can secure inputs for his industry and develop it technologically, productively, and promotionally, in addition to the Syrian government’s ability to secure energy carriers for industry.
An increase in demand for products will consequently lead to increased production, thereby raising the added value of the products and the GDP, and he pointed out the possibility of reviving important and heavy industries, such as energy production (oil and gas) and heavy industries that rely on energy, like iron and cement.
According to Qalaaji, the Damascus Chamber of Industry is currently focused on revitalizing Syrian industry across all its sectors: chemical, textile, food, and engineering, and enhancing its competitiveness locally and internationally through studies prepared by specialized consultants via comprehensive meetings with industrialists to study challenges and obstacles.
The chamber aims to work on establishing a long-term strategy that includes analyzing the strengths and weaknesses in the industrial sector, along with proposals that will be presented to the government to amend the laws governing industrial work and the business sector, to create an industrial investment environment, encourage exports, and reduce production costs, as Qalaaji concluded.
Lifting sanctions: A historic decision changing the course in Syria Enab Baladi.
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