US Lifts Syria Sanctions and Removes 518 Entities From SDN List

President Donald J. Trump signed Executive Order 14312 on June 30, 2025, formally terminating the comprehensive U.S. sanctions program against Syria and removing 518 individuals and entities from the Treasury Department’s Specially Designated Nationals (SDN) list [4]. The move marks the end of a 45-year sanctions era that began in 1979, aiming to shift the nation from a period of economic collapse toward potential reconstruction [2].

Economic impact and policy shift

The termination of the sanctions program unblocks the assets of the Central Bank of Syria and allows U.S. persons to resume financial services and payment processing involving Syrian institutions, provided the parties are not on the remaining restricted lists [4]. The Syrian economy has faced extreme contraction over the last 14 years, with GDP falling from approximately $61 billion in 2011 to $9 billion in 2024 [2]. During this period, the Syrian pound lost two-thirds of its value in 2023 alone, and an estimated 90% of the population currently lives below the poverty line [2].

While the comprehensive program is terminated, the administration maintains targeted sanctions against former President Bashar al-Assad, his associates, and entities linked to chemical weapons or Iranian proxies [1]. The Treasury Department has designated 139 additional individuals and entities under the new Promoting Accountability for Assad and Regional Stabilization Sanctions (PAARSS) program to ensure continued pressure on specific actors [4].

Regulatory and diplomatic adjustments

The executive order also initiates a broader review of Syria’s international status. The State Department has been directed to evaluate the country’s designation as a State Sponsor of Terrorism and has already revoked the Foreign Terrorist Organization (FTO) status of Hay’at Tahrir al-Sham (HTS) as of July 8, 2025 [4]. Furthermore, the administration has waived certain export controls, providing legal authority for the Bureau of Industry and Security to relax restrictions on goods that were previously prohibited under the Syria Accountability and Lebanese Sovereignty Restoration Act [4].

The administration’s stated goal is to support a unified, stable Syria while requiring the new government to assume responsibility for ISIS detention centers and take steps toward normalizing ties with regional neighbors [1]. Despite the lifting of broad financial restrictions, the administration retains the authority to reimplement sanctions should the current regime lose control or fail to meet security benchmarks [2].

What to watch

• Export Administration Regulations: Monitor for formal amendments to the Commerce Control List, which would signal the practical opening of trade in controlled goods [4].
• Caesar Act Status: Watch for the expiration of the current 180-day waiver period for secondary sanctions, which will test the administration's commitment to the new policy framework [4].
• International Investment Flows: Observe whether the removal of the Central Bank of Syria from the SDN list successfully stabilizes the Syrian pound and attracts the anticipated foreign capital [2].

The success of this policy pivot depends on whether the removal of financial barriers can translate into tangible infrastructure development for a population currently facing widespread food and water insecurity. Whether this move leads to long-term regional stability or merely creates a new set of geopolitical dependencies remains the central question for international observers.