Trump’s decision was crucial to restoring Syria’s international connections and improving its economic prospects. However, much more needs to be done to ensure peace and prosperity for its citizens.
Abdulaziz KETAZ / AFP
People celebrate in Damascus' Umayyad square after US President Donald Trump's decision to lift sanctions in Syria, on May 13, 2025.
After President Donald Trump’s landmark pledge in Riyadh to lift US sanctions on Syria, Washington has taken the first technical steps to fulfil his promise. It shows the extent of the newfound support for Damascus after regime change ended the rule of Bashar al-Assad in December. And while a long road lies ahead for the country and its leader, President Ahmed al-Sharaa of the Hay'at Tahrir al-Sham group (HTS), this is a historic moment for the Syrian people as they start to rebuild after years of devastation and economic isolation.
There are various mechanisms involved in easing sanctions, including the issuance of licenses. Measures in place via primary legislation, such as the Caesar Act, can be suspended, but only temporarily, with full removal only possible from a vote in Congress.
With Syria on the brink of a new era, technical details are crucial. This is a look at them from my perspective, having served as Chief Economic Consultant to the Office of the United Nations Resident Coordinator in Syria.
General License No. 25
The US Treasury’s Office of Foreign Assets Control (OFAC) utilises general licenses as one of the tools to implement foreign policy, particularly in matters of national security. It recently issued General License No. 25 as a means of exempting certain sanctions on Syria from being applied. It does not cover executive authorities outside the Treasury itself. However, it permits financial transactions with the Syrian government, including the Central Bank of Syria and various other government institutions.
General License No. 25 aims to facilitate the provision of essential services, including basic utilities, and support reconstruction efforts. The Treasury Department is not the only US agency involved in the sanctions. The Commerce Department implements certain measures related to the prohibition of US exports to Syria.
The use of General License 25 may prove to have wider significance. It could lead to a breakthrough in the sanctions established by executive orders. This is because sanctions can often overlap, and any general licence issued can act as a waiver for the full or partial override of sanctions provisions as determined by the license.
If applied in this way, there is a mechanism for an interim solution, essentially the partial removal of measures on the path toward full lifting. It could provide the means for them to be partially and gradually cancelled.
General License No. 25 aims to facilitate the provision of essential services, including basic utilities, and support reconstruction efforts
Speed of implementation
General licenses can facilitate the suspension of sanctions quickly. That can be an advantage. But it is also a danger in that withdrawal of the license can be made with equal speed. That makes them an excellent temporary solution toward the full lifting of sanctions.
One of the most important aspects of using general licenses is that they allow for clear government action and the kind of set-piece announcements Trump made in Riyadh. He was able to make a clear declaration of intent to lift the sanctions and then take steps to do so almost immediately.
Trump's message sent from the Saudi capital reached all economic sectors in Syria. Even the exceptions outlined in the license are very broad, reflecting an intent to ease restrictions. The impact has been significant. Most people view sanctions in terms of their general purpose and the way they are communicated at the top level, rather than the precise legal details of the measures.
There will also be benefits for countries other than the US, as Syria is freed to open up to international business. Gulf and European countries may be more willing to invest in Syria once US sanctions are removed. Such nations are likely to play a more active role in Syria's reconstruction and development, as well as within its economy, once it is rebuilt.
Limitations and remaining steps
Among the measures that will require a vote in Congress to be fully lifted is the official designation of Syria as a "state sponsor of terrorism". While there are means to allow the president to suspend these sanctions based on national security considerations, this could prove politically difficult to implement. Sanctions linked to this part of US law remain in place.
Caesar, wearing a blue jacket, testifies before the US House Foreign Relations Committee on July 31, 2014.
Meanwhile, the temporary waiver of the Caesar Act allows for investment to come into Syria, but it only lasts for six months. It is an excellent first step. However, this 180-day period is too short to transform the outlook for much-needed foreign direct investment in the country, which can only come with the permanent repeal of the legislation.
Investors need a clear and secure route to the complete lifting of sanctions. Companies interested in doing business with Syria can apply to the Commerce Department for licenses to exempt certain transactions. Such requests are often rejected, unlike waivers applied for from OFAC.
Despite this reputational difference, uncertainties remain over the measures from the Treasury Department, not least over how General License No. 25 will be applied in matters concerning some individuals associated with HTS. Sanctions on the group itself remain in place and continue to have a critically important impact. The need for clarification applies to senior figures within the interim government, including al-Sharaa himself and Anas Khattab, the new minister of the interior.
Syrian President Ahmed al-Sharaa meets with US President Donald Trump and Saudi Crown Prince Mohammed Bin Salman in Riyadh, Saudi Arabia, in this handout released on May 14, 2025.
Past experience reveals that groups can remain on terror lists, with sanctions in place, even if the organisations have ceased to exist. That can mean these general measures continue to apply to individuals, even when the personal sanctions devised for them are eased.
General License 25 may mitigate the impact of this problem, but it does not completely resolve it. Additionally, a range of other measures remain in place, as outlined below.
Key institutions: The Ministries of Defence and Interior remain sanctioned. This is because lifting sanctions on them would contradict US laws, most notably the designation of Syria as a state sponsor of terrorism.
Private companies: While sanctioning any company associated with the Assad regime is generally viewed positively, this approach is problematic for several reasons. For example, the national telecommunications firm, Syriatel, remains under sanctions, despite providing essential services to large parts of Syria. This raises a question: do such sanctions do more harm than good? Unilateral sanctions often affect entire sectors without actually holding officials accountable.
Limited exceptions: General License No. 25 clarifies that the sanctions lifted on certain individuals and entities do not include the release of frozen assets. In other words, these assets remain inaccessible. Although the frozen amounts may be limited compared to Syria's needs, they still have an impact.
UN sanctions: UN-related sanctions remain in effect. For example, if the Syrian president wants to travel to another country, he must obtain an exemption from Committee 1267, which is responsible for overseeing sanctions on terror groups, like the Islamic State (IS) and Al-Qaeda. While the US government cannot unilaterally lift these UN sanctions, it may be able to wield its influence in the UN Security Council.
