Biden administration poised to ax US oil company’s waiver for Kurdish-led northeast Syria
The decision to withdraw the waiver to produce and sell oil in Syria has been presented by administration officials as a policy correction, not a shift.
The Biden administration has decided to not extend a sanctions waiver granted by the Trump administration in April 2020 to a little-known American oil company to operate in northeast Syria, according to well-informed sources who spoke to Al-Monitor on condition they not be cited by name.
Delta Crescent Energy, whose waiver expired April 30, has been given a 30-day grace period to wind down its activities in northeast Syria. The US-protected area is governed by the Kurdish-run autonomous administration of northeast Syria, which is not recognized by Damascus. A Delta Crescent Energy spokesperson insisted in emailed comments to Al-Monitor, "The Office for Foreign Assets Control extended our license. No wind down period."
The decision to withdraw the waiver to produce and sell oil in Syria, which remains heavily sanctioned under the Caesar Act, has been presented by administration officials as a policy correction, not a shift. As such, no other companies are likely to be granted waivers, either.
The company has mounted an energetic lobbying campaign to get the waiver renewed, but sources familiar with the effort say they are unlikely to succeed. Former chief envoy for Syria James Jeffrey is reportedly involved in the effort. Jeffrey, who now heads the Wilson Center's Middle East Program, did not respond to claims that he was informally lobbying in support of extending Delta Crescent Energy’s sanctions waiver. The Delta Crescent Energy spokesperson said, "While we appreciate his experience and knowledge on the subject, James Jeffrey is not involved in any efforts we have underway."
