The United States will exempt some foreign investments from sanctions in areas outside of government control in northeastern Syria.
Speaking at the meeting of the Global Coalition Against ISIS in Marrakech, Morocco, Deputy Assistant Secretary of State Victoria Nuland said that Washington will issue a general permit that will exempt companies from US sanctions.
“The United States plans to issue a general license in the next few days to facilitate private economic investment activities in Syria liberated from ISIS and beyond the government’s control,” Nuland said.
The Kurdish-led Syrian Democratic Forces (SDF) fought ISIS for years on the side of the United States in northeastern Syria and took control of some territory. The Damascus regime, on the other hand, says that this region should come under central control.
This region in northeastern Syria, bordering Turkey and Iraq, includes some of the country’s limited oil reserves and agricultural lands, and a bank of the Euphrates River.
However, a diplomat who discussed the issue with American officials told Reuters news agency that the license would only cover the agriculture and construction sectors, not oil.
Syrian rebels backed by Turkey also control an area in the north of the country they took from ISIS.
According to the diplomat speaking to Reuters, Ankara, which considers the SDF as a terrorist organization, will not oppose the license. This is because the area covered by the permit encompasses areas controlled by rebels, backed by both the SDF and Ankara.
The US imposes harsh sanctions on Syria because of the government’s role in the civil war that has been going on since 2011. However, it also contributes financially to the stabilization efforts in the regions that its allies have taken from ISIS.
Nuland said the United States invested $45 million in these regions last year and informed coalition members that Washington wants $350 million to be set aside this year for stabilization efforts in northeast Syria. Nuland stated that the USA wanted a similar figure for Iraq.
Nuland said that investing in areas previously held by the group is necessary to prevent ISIL from using local problems to recruit new recruits and re-emerge.
Washington had previously issued two general licenses for Syria, but these covered issues such as tackling COVID-19 rather than boosting economic activity.