Caesar Act repealed: US Congress permanently ends Syria sanctions, paving way for investment

Syria sanctions lifted, investment returns possible

The US Congress on Wednesday permanently lifted sanctions on Syria imposed during the rule of ousted leader Bashar al-Assad, clearing the path for investment to return to the conflict-hit country.

President Donald Trump had previously suspended the sanctions twice, responding to requests from Saudi Arabia and Turkey, allies of the new government led by former jihadist Ahmed al-Sharaa.

Sharaa had pushed for a permanent removal of the sanctions, warning that as long as they remained in place, businesses would be hesitant to engage due to legal risks in the world’s largest economy.

The Senate approved the repeal of the 2019 Caesar Act as part of a comprehensive annual defense package, voting 77 to 20 in favor. The measure had already been passed by the House of Representatives and is expected to be signed into law by Trump.

The repeal, broadly backed by lawmakers of both parties, "is a decisive step toward giving the Syrian people a real chance to rebuild after decades of unimaginable suffering," said Senator Jeanne Shaheen, the top Democrat on the Senate Foreign Relations Committee.

The Caesar Act, named after an anonymous photographer who documented atrocities in Assad's prisons, severely restricted investment and cut off Syria from the international banking system.

The law was intended to prevent the influx of foreign businesses to rebuild Syria at a time when it had seemed that Assad had triumphed following more than a decade of brutal civil war that triggered a massive flow of refugees toward Europe and helped spawn the birth of the Islamic State extremist movement.

Sharaa's fighters seized Damascus a year ago in a lightning offensive.

Sharaa -- now dressed in a business suit and seeking better relations with the West -- has impressed Trump, including when they first met during the US leader's May trip to Riyadh.