Shafaq News – Washington / Damascus

On Monday, the US Treasury Department announced the final decision to cancel sanctions on Syria, confirming that the measure will take effect starting Tuesday.

The move followed President Donald Trump’s signing of an executive order ending the Syria sanctions program, a step marking a significant shift in Washington’s policy toward Damascus, in place since 2011.

In May, the Treasury had issued General License 25, which allowed foreign investments and economic transactions with the new Syrian government and certain affiliated institutions, including the central bank and state-owned entities, while suspending Caesar Act sanctions for six months.

Earlier, the European Union also approved the full removal of economic sanctions on Syria.

Syrian Economic Analyst, Amer Ghazawi, told Shafaq News that lifting the sanctions is expected to “reinvigorate the economy through the return of remittances and the opening of space for new investments,” as it could “lead to gradual improvements in infrastructure, with potential entry of energy and telecommunications companies, and a decline in prices of basic goods if trade relations are fully restored.”

The US and the EU first began imposing economic sanctions on Syria in 2011, following the beginning of the civil war. These initial measures were designed to apply political and economic pressure on the government by targeting its financial and energy sectors, freezing the assets of key officials, and restricting trade. The sanctions were significantly expanded and formalized with the passage of the Caesar Syria Civilian Protection Act in 2019. The act targeted various sectors by targeting foreign entities dealing with Damascus and blocking reconstruction.