US President Donald Trump surprised many with his announcement of the new policy on a Gulf tour earlier this month, during which he shook hands with Syria’s jihadist-turned-interim President Ahmed al-Shara.

Trump said he wanted to give the war-torn country’s new rulers “a chance at greatness” after their overthrow of longtime ruler Bashar al-Assad in December.

“The Syrian Arab Republic welcomes the decision from the American government to lift the sanctions imposed on Syria and its people for long years,” a foreign ministry statement said.

It described the move as “a positive step in the right direction to reduce humanitarian and economic struggles in the country”.

US sanctions were first imposed on Syria in 1979 under the rule of Bashar al-Assad’s father, Hafez. They were sharply expanded after the bloody repression of anti-government protests in 2011, which triggered the country’s civil war.

Washington imposed sweeping sanctions on financial transactions with Syria and made clear it would use sanctions to punish anyone involved in reconstruction as long as Assad remained in power.

Since Assad’s ouster, the new administration has been looking to build relations with the West and roll back sanctions, but some governments had expressed reluctance, pointing to the Islamist past of leading figures.

Sharaa himself was once considered a “terrorist” by Washington, with a $10 million bounty on his head.

On Friday, US Treasury Secretary Scott Bessent said his country was “implementing authorisations to encourage new investment into Syria”.

The sanctions relief extends to Syria’s new government with conditions that the country not provide safe haven for terrorist organisations and ensure security for religious and ethnic minorities, the US Treasury Department said.

Concurrently, the US State Department issued a 180-day waiver for the Caesar Act to make sure sanctions do not obstruct foreign investment into Syria.

The 2020 legislation severely sanctioned any entity or company cooperating with the ousted government.

New Relationship

Secretary of State Marco Rubio said the waiver would “facilitate the provision of electricity, energy, water, and sanitation, and enable a more effective humanitarian response across Syria”.

The authorisation covers new investment in Syria, provision of financial services, and transactions involving Syrian petroleum products.

“Today’s actions represent the first step on delivering on the president’s vision of a new relationship between Syria and the United States,” Rubio said.

Syria’s 14-year civil war killed over half a million people and destroyed much of the country’s infrastructure.

Rubio said the lifting of sanctions aims to permit favourable investments in the country and promote “recovery and reconstruction efforts.”

“The president has made clear his expectation that relief will be followed by prompt action by the Syrian government on important policy priorities,” he added.

The European Union announced the lifting of its sanctions on Syria earlier this month.

The move primarily targets Syria’s banking sector, which was previously barred from accessing the international capital market. It also includes unfreezing the assets of the Syrian central bank.

Analysts say a full lifting of sanctions may still take time, as some restrictions require Congress to reverse them, while Syrian authorities need to ensure an attractive environment for foreign investment.