On May 22, the State Department released a set of “Investor Guides” intended to encourage U.S. companies considering investment opportunities in Syria. The guides, the department wrote, signaled “American confidence that Syria can be a credible destination for responsible investment, enterprise and integration” and that “real opportunities exist across sectors—electricity, oil and gas, technology, telecommunications, real estate and banking.” By all accounts, the message was clear: invest in Syria and here’s how best to do it.
But things are anything but clear when it comes to the U.S. legal architecture toward Syria, as U.S. law continues to effectively preclude investment in Syria. The primary reason for this is a legal designation that has outlived its justification. Since 1979, Syria has appeared on the U.S. State Sponsors of Terrorism (SST) list, a status that triggers a range of financial restrictions, including heightened scrutiny on financial transactions, limits on access to U.S. financial institutions, the freezing of certain sovereign assets subject to U.S. jurisdiction, a near-total ban on defense exports, and stringent controls on the export of dual-use goods and technologies.
This article was co-authored by Charles Lister and John Balouziyeh.
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