US Allows Transactions with Governing Institutions in Syria Despite Sanctions

 A worker stands at a bakery after the ousting of Syria's Bashar al-Assad, in Damascus, Syria, January 6, 2025. (Reuters)
A worker stands at a bakery after the ousting of Syria's Bashar al-Assad, in Damascus, Syria, January 6, 2025. (Reuters)
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US Allows Transactions with Governing Institutions in Syria Despite Sanctions

 A worker stands at a bakery after the ousting of Syria's Bashar al-Assad, in Damascus, Syria, January 6, 2025. (Reuters)
A worker stands at a bakery after the ousting of Syria's Bashar al-Assad, in Damascus, Syria, January 6, 2025. (Reuters)

The US on Monday issued a sanctions exemption for transactions with governing institutions in Syria for six months after the end of Bashar al-Assad's rule in an effort to ease the flow of humanitarian assistance.

The exemption, known as a general license, also allows some energy transactions and personal remittances to Syria until July 7. The action did not remove any sanctions.

Syria suffers from severe power shortages, with state-supplied electricity available just two or three hours per day in most areas. The caretaker government says it aims to provide electricity up to eight hours per day within two months.

The US Treasury said the move sought "to help ensure that sanctions do not impede essential services and continuity of governance functions across Syria, including the provision of electricity, energy, water, and sanitation."

A lightning opposition offensive brought a sudden end to decades of Assad family rule on Dec. 8. The Hayat Tahrir al-Sham (HTS) group, which led the advance and set up Syria's caretaker government, renounced its ties with Al-Qaeda. But the US continues to designate it as a terrorist entity.

The United States, Britain, the European Union and other governments imposed tough sanctions on Syria after Assad's crackdown on pro-democracy protests in 2011 spiraled into civil war.

Washington previously authorized humanitarian support to the Syrian people by aid groups, the United Nations and the US government as well as some economic activity in certain areas not held by Assad's government.

While Monday's move "authorizes transactions with governing institutions in Syria ... even if a designated individual has a leadership role in that governing institution," it does not permit any transactions involving military or intelligence agencies.

The Treasury defined Syria's governing institutions as departments, agencies and government-run public service providers - including hospitals, schools and utilities - at the federal, regional or local level, and entities involved with HTS across Syria.

It also authorizes transactions in support of the sale, supply, storage or donation of energy, including petroleum and electricity, to or within Syria.

US sanctions on Assad and his associates, the Syrian government, the Central Bank of Syria and HTS remain in place, said the US Treasury.

'SUPPORT HUMANITARIAN ASSISTANCE'

A US official, speaking on condition of anonymity, said the move showed goodwill toward the Syrian people rather than the new government.

"The end of Bashar al-Assad’s brutal and repressive rule, backed by Russia and Iran, provides a unique opportunity for Syria and its people to rebuild," said Deputy Treasury Secretary Wally Adeyemo in a statement.

"During this period of transition, Treasury will continue to support humanitarian assistance and responsible governance in Syria."

Maher Khalil al-Hasan, the trade minister in Syria's caretaker government, on Monday said the country is unable to make deals to import fuel, wheat or other key goods due to strict US sanctions despite many countries wanting to do so.

Syria faces a "catastrophe" if sanctions are not frozen or lifted soon, he said.

Washington wants to see HTS cooperate on priorities such as counterterrorism and forming a government inclusive of all Syrians.

Along with unilateral measures, HTS has also been on the UN Security Council Al-Qaeda and ISIS sanctions list for more than a decade, subject to a global assets freeze and arms embargo, though there is a humanitarian exemption.

Many diplomats acknowledge that the removal of sanctions could be used as leverage to ensure Syria's new authorities fulfill their commitments.

Diplomats and UN officials are also keen to avoid a repeat of difficulties in Afghanistan after the hardline Taliban took over in August 2021 as US-led forces withdrew after two decades of war.

Banks were wary of testing UN and US sanctions, leaving the UN and aid groups struggling to deliver enough cash to run operations and forcing the US to issue sanctions exemptions.



After US Exemption, UN Says More Significant Syria Sanctions Work Needed

A general view shows Damascus from Mount Qasioun, after one month since the ousting of Syria's Bashar al-Assad, in Damascus, Syria, January 7, 2025. (Reuters)
A general view shows Damascus from Mount Qasioun, after one month since the ousting of Syria's Bashar al-Assad, in Damascus, Syria, January 7, 2025. (Reuters)
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After US Exemption, UN Says More Significant Syria Sanctions Work Needed

A general view shows Damascus from Mount Qasioun, after one month since the ousting of Syria's Bashar al-Assad, in Damascus, Syria, January 7, 2025. (Reuters)
A general view shows Damascus from Mount Qasioun, after one month since the ousting of Syria's Bashar al-Assad, in Damascus, Syria, January 7, 2025. (Reuters)

A US sanctions exemption for transactions with governing institutions in Syria is welcome, but "much more significant work ... will inevitably be necessary," the UN special envoy on Syria, Geir Pedersen, told the Security Council on Wednesday.

After 13 years of civil war, Syria's President Bashar al-Assad was ousted in a lightening offensive by opposition forces led by the Hayat Tahrir al-Sham (HTS) group a month ago.

The US, Britain, the European Union and others imposed tough sanctions on Syria after a crackdown by Assad on pro-democracy protests in 2011 that spiraled into war. But the new reality in Syria has been further complicated by sanctions on HTS - and some leaders - for its days as an al-Qaeda affiliate.

"I welcome the recent issuance of a new temporary General License by the United States government. But much more significant work in fully addressing sanctions and designations will inevitably be necessary," Pedersen told the council.

The US on Monday issued a sanctions exemption, known as a general license, for transactions with governing institutions in Syria for six months in an effort to ease the flow of humanitarian assistance and allow some energy transactions.

"The United States welcomes positive messages from Hayat Tahrir al-Sham, but will ultimately look for progress in actions, not words," deputy US Ambassador to the UN Dorothy Camille Shea told the Security Council.

The foreign ministry in Damascus on Wednesday welcomed the US move and called for a full lifting of restrictions to support Syria's recovery.

French Foreign Minister Jean-Noel Barrot said earlier on Wednesday that European Union sanctions on Syria that obstruct the delivery of humanitarian aid and hinder the country's recovery could be lifted swiftly.

Russia's UN Ambassador Vassily Nebenzia criticized the sanctions imposed on Syria by Washington and others, adding: "As a result, the Syrian economy is under extreme pressure and is not able to cope with the challenges facing the country." Russia was an Assad ally throughout the war.

'END THE SUFFERING'

Formerly known as Nusra Front, HTS was al-Qaeda's official wing in Syria until breaking ties in 2016. Along with unilateral measures, the group has also been on the UN Security Council al-Qaeda and ISIS sanctions list for more than a decade, subjected to a global assets freeze and arms embargo.

There are no UN sanctions on Syria over the civil war.

Syria's UN Ambassador Koussay Aldahhak was appointed a year ago by Assad's government but told the council on Wednesday that he was speaking for the caretaker authorities.

"It is high time to end the suffering, to enable Syrians to live in security and prosperity, to live a dignified life in their country, to build a better future for their country," Aldahhak said.

"For this reason, we call upon the United Nations and its member states to immediately and fully lift the unilateral coercive measures to provide the necessary financing to meet humanitarian needs and recover basic services," he said.

Pedersen said he is seeking to work with the caretaker authorities in Syria "on how the nascent and important ideas and steps so far articulated and initiated could be developed towards a credible and inclusive political transition."

Pedersen said attacks on Syria's sovereignty and territorial integrity must stop, specifically calling out Israel.

As Assad's government crumbled towards the end of last year, Israel launched a series of strikes against Syrian military infrastructure and weapons manufacturing sites to prevent them falling into the hands of enemies.

"Reports of the IDF using live ammunition against civilians, displacement and destruction of civilian infrastructure are also very worrying," Pedersen said. "Such violations, along with Israeli airstrikes in other parts of Syria – reported even last week in Aleppo – could further jeopardize the prospects for an orderly political transition."