US authorizes transactions with governing institutions in Syria despite sanctions

The U.S. on Monday issued a sanctions exemption for transactions with governing institutions in Syria for six months after the end of Bashar al-Assad's rule in an effort to ease the flow of humanitarian assistance.

The exemption, known as a general license, also allows some energy transactions and personal remittances to Syria until July 7. The action did not remove any sanctions.

Syria suffers from severe power shortages, with state-supplied electricity available just two or three hours per day in most areas. The caretaker government says it aims to provide electricity up to eight hours per day within two months.

The U.S. Treasury said the move sought "to help ensure that sanctions do not impede essential services and continuity of governance functions across Syria, including the provision of electricity, energy, water, and sanitation."

While Monday's move "authorizes transactions with governing institutions in Syria ... even if a designated individual has a leadership role in that governing institution," it does not permit any transactions involving military or intelligence agencies.

The Treasury defined Syria's governing institutions as departments, agencies and government-run public service providers - including hospitals, schools and utilities - at the federal, regional or local level, and entities involved with HTS across Syria.

It also authorizes transactions in support of the sale, supply, storage or donation of energy, including petroleum and electricity, to or within Syria.

U.S. sanctions on Assad and his associates, the Syrian government, the Central Bank of Syria and HTS remain in place, said the U.S. Treasury.

Reuters