Washington tells Damascus what it needs to do to ease sanctions

Demands include a public ban on any Palestinian political activity, proscribing Iran's Revolutionary Guard as a terrorist organisation, and allowing unilateral US military action in Syria

Al Majalla

Washington tells Damascus what it needs to do to ease sanctions

Eight American conditions for temporarily easing US sanctions on Syria have been revealed in diplomatic documents seen by Al Majalla in recent days. They include a public ban on any Palestinian political activity, proscribing the Iranian military as a terrorist organisation, and allowing unilateral US military action on Syrian territory, in return for a two-year sanctions waiver that many think Damascus needs before it can start resetting its economy.

Other documents seen by Al Majalla include those from Syria and the United Nations. Together, they start to paint a picture of the new Syrian regime’s international relations.

The American letter sets out eight demands as prerequisites for a waiver, while the response from Damascus comes after Foreign Minister Asaad al-Shaibani met US Deputy Assistant Secretary of State for Near Eastern Affairs, Natasha Franceschi, in Brussels last month. He noted progress in several areas, including the disposal of the former regime’s chemical weapons, the fight against Islamic State (IS), and efforts to restructure the national army, but expressed disquiet over others.

Follow the money

The UN document from Abdullah al-Dardari, a former Syrian Deputy Prime Minister and UN Assistant Secretary-General, proposes that Damascus allow the UN Development Programme (UNDP) to oversee the expenditure of $500mn in frozen Syrian state assets held in European banks. The funds would be allocated to development projects in Syria, circumventing US sanctions.

Preparations are being made for Syrian Finance Minister Muhammad Yaseer Berniyeh and Central Bank Governor Abdulkader Husrieh to visit Washington, where they will also meet officials from the World Bank and the International Monetary Fund, ahead of al-Shaibani’s trip to New York for a ministerial-level Security Council meeting, during which the Syrian flag will be raised at the UN headquarters.

REUTERS/Yves Herman
Syrian Foreign Minister Asaad al-Shaibani attends the 55th annual World Economic Forum (WEF) meeting in Davos, Switzerland, on January 23, 2025.

According to Reuters, Saudi Arabia and the World Bank will host a meeting on Syria on the sidelines of the financial summits in Washington. Riyadh may cover some of Syria's arrears to the World Bank, unlocking grants to support Syria's reconstruction and economic recovery. World Bank support could come through its International Development Association (IDA), with initial help for Syria's electricity sector.

Al Majalla has obtained a copy of a UNDP document describing the Syrian asset file as a complex financial challenge. Assets and funds belonging to regime figures were frozen under sanctions following former president Bashar al-Assad's brutal 2011 crackdown against Syrian opposition groups, with tens of thousands killed.

The proposal envisions UNDP serving as a neutral facilitator between Syrian and international stakeholders, in coordination with the Central Bank of Syria. A key recommendation is to establish a mechanism within the UN framework to channel the $500mn of frozen assets into development and reconstruction efforts within Syria, rather than transferring them directly to Syrian state accounts.

This approach is informed by the legal and political concerns of donor countries wary of releasing funds to Syrian authorities, not least given the questionable legitimacy of the assets and the risk of their misuse. One Western diplomat said: "The funds legally belong to the Syrian state and can technically be disbursed without mediation, but this would only increase the financial burden of allocating them to actual projects."

One proposal is that Damascus lets the UN Development Programme oversee the expenditure of $500mn in frozen Syrian state assets 

The UN would offer legal counsel to the Central Bank of Syria, now headed by Abdulkader Husrieh, a former director of Ernst & Young, a major Western accounting firm, and the Red Crescent in Geneva. The UN would help him understand how to claim or utilise the frozen assets within the bounds of international law, ensuring both transparency and compliance with sanctions-related resolutions.

Al-Shaibani is expected to arrive in New York at the end of the week, where he will oversee the raising of the Syrian flag at the UN and attend Security Council sessions. He will also participate in a briefing by UN Special Envoy Geir Pedersen on 25 April and a broader Middle East session on 29 April. Several foreign ministers are also expected, including France's Jean-Noël Barrot.

The welcome from the White House is not expected to be warm, however. Hints include the US State Department's decision to downgrade the visa status of the Syrian delegation as being a government "not recognised by the United States"—a designation Washington did not apply even during the final decade of the Assad regime.

Since Bashar al-Assad was toppled in December 2024, several Arab and European countries have extended a hand to Syria's new leadership under interim President Ahmed al-Sharaa, but the US has proceeded with caution. US Assistant Secretary of State Barbara Leaf met al-Sharaa in Damascus, as Washington revoked a $10mn bounty for information leading to his capture.

Caught in two minds

The US is sharing actionable intelligence with the Damascus government. This reportedly thwarted at least eight planned terrorist attacks since al-Sharaa's forces overthrew al-Assad. 

Yet, despite advice from several Arab allies urging greater openness toward Damascus, the White House remains wary and has yet to formulate a comprehensive Syria policy that reflects consensus among key American institutions. Joel Rayburn, a seasoned diplomat and former envoy for Syria, may lead on this within the State Department.

SANA
President Ahmed al-Sharaa meets with US Congressman Cory Lee Mills at the People's Palace in Damascus, Syria.

Al-Sharaa recently hosted Congressman Cory Mills at the People's Palace in Damascus, marking the first official congressional visit since the new government assumed power. However, according to those familiar with developments, Washington is split into two camps. One is open to Damascus; the other is not.

Director of National Intelligence Tulsi Gabbard and Director of Counter-terrorism Sebastian Gorka are members of the latter, which rejects any engagement with the new Syrian administration. They cite UN Security Council resolutions and US terrorism designations concerning al-Sharaa's Hay'at Tahrir al-Sham (HTS), whose senior leaders now hold positions within the current Syrian government.

In the other camp are US Secretary of State Marco Rubio and the Central Intelligence Agency. They advocate for selective cooperation and see strategic value in engaging Damascus, particularly given Iran's diminishing influence there. 

List of demands

This lack of consensus perhaps explains the US document outlining eight confidence-building demands, delivered by diplomat Natasha Franceschi to al-Shaibani in Brussels in March. Some demands, such as the formation of a professional, unified army, were already priorities for Damascus.

Yet the US says it does not want foreign fighters holding sensitive military leadership positions, which may be difficult, given how important foreign fighters were to the successful military victory over al-Assad's forces and the loyalty they have shown al-Sharaa and HTS.

Several Arab and European countries have extended a hand to Syria's new leadership, but the US has proceeded with caution

Other US demands also concur with Syria's own goals, with Washington demanding full access to all chemical weapons sites and related infrastructure, investigations into the fate of missing Americans (like journalist Austin Tice), the repatriation of IS fighters' families currently held at the Al-Hol camp in north-east Syria, and cooperation with the US and others in the continued fight against IS.

This includes permission for the continuance of US counterterrorism operations on Syrian soil against anyone Washington deems to be a threat, which could be problematic for a government seeking to regain sovereignty and control over its territory. 

Other US demands include an official public declaration from Damascus banning all Palestinian militias and political activities in Syria, while deporting their members as a gesture to "ease Israeli concerns". A final demand is to officially designate the Islamic Revolutionary Guard Corps (IRGC) as a terrorist organisation.

Analysts had expected Washington to demand that Damascus form an inclusive transitional government and make progress on issues such as transitional justice, human rights, and constitutional reform, but the letter delivered by Franceschi is mute on all these points except for the odd reference in the annexes that would not be among the binding clauses.

Mixed reactions

In exchange, the US offers to extend the current six-month waiver, which is set to expire in July. This was granted in the final days of the White House administration of Joe Biden, shortly before Donald Trump's inauguration. Trump has the power to temporarily suspend the Caesar Act, seen as a major obstacle to Syria's economic recovery and access to international aid.

Damascus expressed disappointment in the American proposal, since its provisions infringe upon Syrian sovereignty. In particular, it expressed deep reservations over the prohibition of political activities by Palestinian factions, and the required permission for US and coalition forces to take unilateral military action within Syrian territory.

Trump has the power to temporarily suspend the Caesar Act, a major obstacle to Syria's economic recovery and access to international aid

The Syrian Foreign Ministry has responded to Washington, outlining both the steps it has taken in several areas and the points it finds problematic. US officials are currently considering the response, but Western diplomats feel that Damascus has already made significant headway on some key issues, such as chemical weapons.

President al-Sharaa had received a delegation from the Organisation for the Prohibition of Chemical Weapons (OPCW) in February. Al-Assad was accused of using chemical weapons during the Syrian conflict, and the OPCW has details on more than 100 sites used for this purpose. The head of the OPCW described the visit as a "new beginning" and an opportunity to move forward on a long-stalled dossier. 

Making progress

Beyond this, Damascus has halted the activities of armed Palestinian factions, continued the fight against IS, and improved coordination with the US-backed Syrian Democratic Forces (SDF) in the north-east, with President al-Sharaa recently signing an agreement with SDF commander Mazloum Abdi, who flew into Damascus aboard US military helicopters. 

The US Department of Defence plans to reduce its troop presence in Syria to fewer than 1,000 personnel over the coming months. The New York Times reported that the Pentagon had already begun withdrawing several hundred soldiers from northern Syria as it prepares to close three of its eight military bases there, the Sharaa–Abdi agreement having led to a ceasefire between the Kurdish-run SDF and the Turkish military in north-eastern Syria. 

These are still early days in post-Assad Syria and several important players—not least the United States—are still learning to trust the HTS fighters now in government, but if negotiations over the US sanctions waiver demands are successful, as many states hope, then Syria's new rulers can start to plan for a much-needed rebuild after half a century of Assad-era rule. 

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