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.
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."