US eases sanctions on investment in Kurdish, Turkish areas of Syria

The United States has formally lifted sanctions on foreign investments in non-regime held areas of northern Syria, a long expected move that was held up by Treasury Department red tape as reported earlier by Al-Monitor.

The Treasury Department posted the authorization on its website, which allows activities in 12 different economic sectors in the US-protected and Kurdish government areas of northeast Syria and parts of Turkish-occupied north and northwest Syria. However, the authorization does not extend to oil, most of which sits in the northeast and is a vital source of income for the Kurdish-led autonomous administration governing northeast Syria.

The Syrian Kurdish entity lobbied hard for the restitution of a waiver on oil granted by the Trump administration. The move triggered an uproar, with Syrian President Bashar al-Assad accusing the United States of “stealing” his country’s oil. The Biden administration scrapped the waiver.

Foreign companies will now be allowed to invest in sectors such as agriculture, telecommunications, health services and education, part of a broader effort to stabilize areas previously under Islamic State control.