OFAC Issues Syria General License and FAQs Easing Sanctions

The US Office of Foreign Assets Control (OFAC) issued Syria General License 24 (GL 24) authorizing certain transactions with the new Syrian government and easing some transactions related to energy and personal remittances. The sanctions relief is part of the effort to ease the flow of humanitarian aid into Syria.

The general license has an initial duration of six months, set to expire on July 7, 2025. Assuming the situation in Syria stabilizes, the term of GL 24 will likely be extended. As such, OFAC’s announcement indicates that the US government will “monitor the evolving situation on the ground” in Syria and make any needed adjustments as the situation requires.

While authorizing transactions with governing institutions in Syria, GL 24 does not lift the sanctions on Syria, former Syrian president Bashar al-Assad, the Central Bank of Syria, the new de facto ruling group Hay’at Tahrir al-Sham (HTS), or its leader Ahmed al-Sharaa (also known as Abu Mohammad al-Julani).

Formerly known as the al-Nusra Front, HTS operated as the Syrian affiliate of Al-Qaeda between 2013 and 2016. The Biden administration announced on January 8, 2025 that it would maintain HTS’s current designation as a terrorist group, deferring a final decision on whether to remove the listing to the Trump administration. HTS’s status as a designated foreign terrorist organization prohibits US persons from providing material support or resources to that group.

Similarly to what has occurred in Afghanistan, the availability of GL 24—while simultaneously maintaining sanctions against the de facto ruling authority—creates compliance challenges for those seeking to provide humanitarian aid or undertake energy-related projects.

OFAC has issued new FAQs and one amended FAQ offering additional guidance to those who seek to conduct now-authorized transactions and activities in Syria.

SYRIA GL 24

OFAC issued Syria General License 22 (GL 22) in May 2022 to support efforts to stabilize regions in Syria no longer under the control of the Assad regime. GL 22 eased sanctions on certain industries such as construction, clean energy, and health services.

GL 24 builds on GL 22 by authorizing transactions that would normally be prohibited under the Syrian Sanctions Regulations, the Global Terrorism Sanctions Regulations, or the Foreign Terrorist Organizations Sanctions Regulations, including the following:

• Transactions with “governing institutions” in Syria after December 8, 2024
• Transactions in support of the sale, supply, storage, or donation of energy, including petroleum, petroleum products, natural gas, and electricity, to or within Syria
• Transactions that are ordinarily incident and necessary to processing the transfer of noncommercial, personal remittances to Syria, including through the Central Bank of Syria

GL 24 does not remove any of the restrictions placed on Syria under its designation as a State Sponsor of Terrorism (SST), which include a ban on defense exports and sales to Syria, controls over exports of dual-use items, and various financial restrictions. Additionally, imports of Syrian petroleum or petroleum products into the United States, transactions for or on behalf of the governments of Russia or Iran, and new investments in Syria all remain prohibited absent specific authorization from OFAC.  

In issuing GL 24, OFAC has seemingly created at least one significant potential conflict. As a designated Foreign Terrorist Organization (FTO), the US government has made it illegal to provide material support to HTS. Material support is defined broadly and would normally include transactions for any goods or services. The FAQs do not clarify how this conflict is resolved.

As a result, some uncertainty remains when dealing with HTS, even in its role as the governing body of Syria. Despite the fact that these contradictory authorities could prevent parties from utilizing the license, in the past OFAC has resolved these types of contradictions by treating these general licenses as a statement of enforcement policy when it comes to dealings with Syria and the Syrian government.

NEW AND AMENDED SYRIA-RELATED FAQs

OFAC’s issuance of GL 24 was accompanied by the publication of eight new FAQs and one amended FAQ. We summarize the more relevant FAQs below.  

FAQ 1206

FAQ 1206 clarifies that, for the purposes of GL 24, “governing institutions” refers to departments, agencies, and government-run public service providers (including public hospitals, schools, and utilities) in Syria at the federal, regional, or local level. Crucially, this definition excludes Syrian military or intelligence entities or any individuals or entities acting on their behalf.

FAQ 1207

FAQ 1207 lists specific examples of transactions involving Syrian governing institutions, as defined in FAQ 1206, that are authorized under GL 24. These include exchanging services with Syrian governing institutions like the Ministries of Health, Education, or Water Resources, even if the ministry or its leadership is blocked; paying taxes, fees, or import duties; purchasing or receiving permits, licenses, or public services; paying salaries or wages to employees of governing institutions; and negotiating contracts or agreements with governing institutions.

This FAQ in particular addresses some of the areas that in other programs have caused confusion and/or unintended consequences, making it clear that even though HTS retains its FTO status, these basic government functions can still be undertaken.

FAQ 1208

FAQ 1208 explains that engaging in activities or transactions with governing institutions in Syria run by or led by a designated person can be authorized under GL 24 so long as any financial transfers to these blocked persons are for the purpose of effecting certain authorized payments to governing institutions or associated service providers in Syria. In other words, as with other sanctions programs, the fact that the person running the agency is sanctioned does not prohibit necessary interactions with that agency. This too has been a recurring issue in similar sanctions programs where OFAC seeks to differentiate between the country or its government and the individuals in charge of that government.

FAQ 1211

According to FAQ 1211, foreign governments and companies may donate or provide subsidized fuel to Syria without facing exposure to US sanctions, for example, by donating gasoline to Syrian refineries and power plants, many of which are government-owned or -operated.

That said, persons are not relieved from compliance with any other laws or requirements from other federal agencies, international organizations, or foreign jurisdictions. For example, exporting or reexporting petroleum, petroleum products, natural gas, and other commodities to Syria may require additional authorization from the US Department of Commerce if such items are US-origin or otherwise subject to the Export Administration Regulations (EAR).

KEY TAKEAWAYS

• Syria remains subject to comprehensive sanctions, and the limited sanctions relief issued in the form of GL 24 is temporary, absent an extension by OFAC. While OFAC may ultimately decide to extend GL 24 if it determines the situation is stabilizing, entities should proceed with caution when contemplating continuing or expanding their business in Syria, for example, in the energy or utilities sectors.

• As Treasury has made clear, GL 24 does not trump all Syria-related restrictions. Therefore, entities considering continuation or expansion of their activities in Syria should conduct robust due diligence to ensure all aspects of a transaction are authorized.
• Questions remain about how GL 24 applies with respect to the FTO designation of HTS. Organizations seeking to conduct business in Syria should seek legal advice where there is uncertainty about the applicability of GL 24.
• The European Union foreign policy chief announced that European foreign ministers will meet on January 27, 2025 to decide whether and how the EU should relax sanctions in place on Syria. At a meeting of European and Middle Eastern countries in Riyadh on January 11, 2025, representatives of France, Germany, the Netherlands, Spain, Finland, and Denmark called for the EU to drop its sanctions on Syria. A paper signed by these countries focused on easing restrictions on transport between the EU and Syria, lifting a ban on the export of oil and gas technology, and restoring investment and banking relations. As the EU’s lifting of sanctions on Syria is likely to differ from that of the United States, at least initially, operators with an obligation to comply with both US and EU sanctions will need to carefully consider their obligations under each regime.

Legal practice assistant Charlie Biggs assisted with this LawFlash.