Syria Sanctions
The origins of U.S. sanctions on Syria trace back to the early 2000s, amid heightened geopolitical tensions following the September 11th attacks. On May 11, 2004, President George W. Bush signed Executive Order 13338, marking the beginning of targeted sanctions against the Syrian government.
Over the years, these sanctions have expanded significantly, particularly in response to the Syrian civil war and ongoing human rights violations, reflecting continued international efforts to pressure the Assad regime toward reform. The regulations are complex and frequently updated, reflecting the evolving geopolitical landscape and the need to address new challenges. Those who want to have a deal with Syria must have experienced OFAC lawyers on their side to navigate legal requirements effectively.
Why does Syria face sanctions?
Syria has been subject to international sanctions for over a decade, primarily due to the government’s actions during the civil war and its ongoing human rights abuses. These sanctions, imposed by the United States, the European Union, and other countries, aim to pressure the Syrian regime to halt its oppressive practices and engage in political reforms. The sanctions target various sectors, including finance, trade, and energy, and are designed to limit the resources available to the Syrian government.
Sanctions after the civil war
Following the outbreak of the Syrian civil war in 2011, the international community intensified its sanctions against Syria. The United States and the European Union were at the forefront, implementing measures to weaken the Assad regime’s ability to finance its military operations. These sanctions included:
Asset Freezes: Targeting Syrian government officials, military leaders, and entities supporting the regime;
Trade Embargoes: Prohibiting the import and export of certain goods, including arms and dual-use technologies;
Financial Restrictions: Limiting the ability of Syrian banks to operate internationally and restricting investments in the Syrian economy
The sanctions aimed to isolate the Syrian government economically and diplomatically, thereby compelling it to cease hostilities and negotiate a political settlement. Despite these efforts, the conflict persisted, leading to further sanctions and the inclusion of additional individuals and entities on sanctions lists.
Turkey–Syria earthquake in 2023
The devastating earthquake that struck Turkey and Syria in February 2023 brought renewed attention to the impact of sanctions on humanitarian efforts. In the aftermath, there were widespread calls to lift or ease sanctions to facilitate relief operations. Critics argued that the sanctions were hindering the delivery of essential aid, while proponents maintained that humanitarian exemptions were in place to ensure aid could reach those in need.
In response, the United States issued Syria General License 23, temporarily authorizing transactions related to earthquake relief efforts. This license aimed to alleviate some of the logistical challenges faced by aid organizations operating in Syria. However, the exclusion of transactions involving petroleum and directly sanctioned entities limited the scope of the relief efforts.
The earthquake highlighted the ongoing debate over the balance between maintaining pressure on the Syrian regime and addressing the humanitarian needs of the Syrian population. As the situation evolves, the international community continues to grapple with the complexities of sanctions and their unintended consequences.
What Does the Executive Order Target?
Restrictions on the Export or Supply of Certain Goods
Under the OFAC Syria sanctions, there are stringent restrictions on the export or supply of specific goods to Syria. These measures are designed to limit the Syrian government’s access to resources that could be used to perpetuate conflict or human rights abuses. The prohibited items include:
- Arms and Related Materiel: This encompasses weapons, ammunition, military vehicles, and equipment, as well as spare parts and accessories. It also includes paramilitary equipment;
- Certain Equipment and Technology: Items related to the oil and gas sector, petrochemical industries, and new electricity power plants are restricted. This is to prevent the regime from bolstering its infrastructure that could support military operations;
- Communication Monitoring Tools: Equipment, technology, or software designed to monitor or intercept internet or telephone communications are banned to prevent surveillance and repression of the civilian population;
- Currency and Coinage: The supply of newly printed or unissued Syrian banknotes or coinage is prohibited to limit the regime’s financial capabilities;
- Luxury Goods: Certain luxury items are restricted to prevent the regime from accessing goods that could be used to reward loyalists or fund its activities;
- Materials and Chemicals: Certain materials, chemicals, micro-organisms, and toxins, along with equipment for processing these items, are banned, especially if they could be used for military purposes;
- Precious Metals and Gems: The supply of gold, precious metals, and diamonds is restricted, particularly if the recipient is the Syrian government or entities acting on its behalf.
These export restrictions are part of a broader strategy to isolate the Syrian regime economically and limit its ability to sustain its military efforts. By controlling the flow of critical goods, the sanctions aim to pressure the government into complying with international demands for political reform and respect for human rights.
Restrictions on the Import, Purchase, or Transport of Certain Goods
The sanctions against Syria include strict prohibitions on the import, purchase, or transport of specific goods, primarily aimed at curtailing the financial resources available to the Syrian government.
- crude oil and petroleum products;
- gold, precious metals, and diamonds.
Restrictions on Certain Commercial Activities
The Syria sanctions regime imposes extensive restrictions on various commercial activities, particularly those related to the petrochemical, oil and gas industries, and the financial sector.
The following activities are prohibited under the sanctions against Syria:
- Investment in the petrochemical industry: acquiring shares in, establishing joint ventures with, or providing credit to Syrian entities engaged in the petrochemical sector is prohibited.
- Oil and gas sector: selling interests in commercial activities within the oil and gas industry to Syrian entities is banned.
- Financial sector restrictions: Syrian financial institutions are prohibited from opening offices or purchasing shares in foreign banks. Similarly, foreign financial institutions are barred from establishing correspondent banking relationships with Syrian banks or opening branches in Syria.
- Construction and power plant projects: engaging in the construction or installation of new power plants for electricity production in Syria is restricted.
Restrictions on Provision of Certain Services
To complement restrictions on the export and import of goods and certain commercial activities, the Syria sanctions regime also imposes limitations on the provision of services related to these sanctioned goods and activities. These restrictions are designed to prevent the Syrian government from gaining indirect support through services that could enhance its capabilities.
- services related to export-sanctioned goods: it is prohibited to provide services connected to the supply of goods that are restricted from export to Syria.
- financial services for import-sanctioned goods: Offering financial assistance or services related to the import of goods that are banned from being purchased or transported from Syria is prohibited.
- investment services: services that facilitate investment in sanctioned commercial activities, particularly in sectors like oil and gas, are restricted.
- military and surveillance services: providing services that support military activities or the manufacture, maintenance, or use of export-sanctioned goods is prohibited. This extends to services that could enhance the regime’s surveillance capabilities, such as those related to internet or telecommunications monitoring;
- services involving precious metals and gems: if provided to the Government of Syria or entities acting on its behalf, services related to the supply, sale, transfer, import, purchase, or transport of gold, precious metals, or diamonds are restricted.
Restrictions on Providing Assets to Designated Persons or Entities
Under the Syria sanctions regulations, it is strictly prohibited to directly or indirectly provide assets to, or for the benefit of, any designated person or entity. This includes:
- Financial Assets: Offering funds, loans, or any form of financial assistance to designated individuals or organizations is banned. This measure is intended to cut off financial support that could be used to further the regime’s activities;
- Tangible and Intangible Assets: Supplying goods, property, or any other resources that could be converted into financial support for the designated parties is prohibited;
- Indirect Support: Even indirect provision of assets, such as through intermediaries or third parties, is restricted to prevent any circumvention of the sanctions.
Restrictions on Dealing with the Assets of Designated Persons or Entities
Under the Syria sanctions regime, stringent measures are in place to prevent the use or management of assets owned or controlled by designated individuals or entities. These assets are effectively “frozen,” meaning they cannot be accessed or utilized in any manner. The prohibition on dealing with these assets includes:
- Using, Selling, or Moving Assets: It is forbidden to engage in any transactions involving the assets of designated persons or entities. This includes using, selling, transferring, or otherwise handling these assets;
- Facilitating Use by Others: Assisting or allowing another person to use or deal with the frozen assets is also prohibited. This ensures that the designated parties cannot indirectly access their resources through intermediaries;
Our team of lawyers specializes in removal from SDN list. We provide comprehensive legal support, evaluate the specific circumstances, prepare and submit detailed petitions to the Office of Foreign Assets Control (OFAC).
Travel Bans
Executive Order 13608, among others, prohibits the entry of certain individuals into the United States. These individuals are typically those who have been identified as supporting the Syrian regime or engaging in activities that undermine regional stability and security. While travel bans are stringent, OFAC provides certain exemptions, particularly for humanitarian purposes. These exemptions are designed to ensure that essential aid and support can reach those in need without being hindered by the sanctions framework. U.S. persons and entities must comply with these travel restrictions, and violations can result in significant penalties.
Restrictions on Illegally Removed Cultural Property
The Syria sanctions regime enforces United Nations Security Council Resolution 2199, which aims to protect cultural property that has been illegally removed from Syria. This resolution is part of a broader international effort to preserve Syria’s rich cultural heritage and prevent the illicit trade of artifacts that have been displaced due to conflict. Cultural property covered by these restrictions includes items of archaeological, historical, cultural, rare scientific, or religious significance.
Syria General License Transactions
Despite the extensive restrictions imposed by U.S. sanctions on Syria, certain transactions are exempted, allowing for limited financial interactions with the Syrian economy. These exemptions are designed to align with U.S. foreign policy and national security interests, facilitating activities that support humanitarian and non-profit efforts.
Through the issuance of OFAC general licenses, U.S. persons and entities can engage in specific transactions without needing individual approval. These licenses permit a range of activities, including:
Exporting and importing goods: transactions involving the exchange of Syrian goods, provided they do not benefit sanctioned officials or entities;
Remittances: sending and receiving remittances that are not linked to sanctioned individuals, enabling financial support for families and communities in need;
Humanitarian aid: the exchange of goods and services related to non-profit activities and humanitarian assistance, ensuring that essential aid reaches those affected by the ongoing conflict.
For transactions not covered by a general license, individuals and organizations can apply for a specific OFAC license. This process involves demonstrating that the proposed activities are consistent with U.S. policy objectives and do not undermine the sanctions’ goals.
Our team of skilled sanctions attorneys can provide assistance in obtaining the necessary OFAC licenses for conducting transactions with Syria.
Faced issues with Syria Sanctions?
Complexities of Syria sanctions can be challenging for individuals and businesses, especially when attempting to comply with the regulations set forth by the Office of Foreign Assets Control (OFAC). If you are facing difficulties related to Syria sanctions, our experienced OFAC sanctions lawyers are here to help.
We have extensive expertise in dealing with OFAC regulations and can provide comprehensive assistance to ensure you comply with sanctions requirements. Contact us today to schedule a consultation.
