Trump lifted sanctions on Syria, a move that took everyone completely by surprise. As is well known, Syria has long been in the crosshairs of U.S. law enforcement and foreign policy as a state sponsor of international terrorism, a persistent violator of human rights, and more. The list of offenses associated with the Assad regime is extensive and well-documented.

Yes, Assad’s regime was overthrown in December 2024. But by whom? Islamist extremists with roots in al-Qaeda. While the civil war in Syria may have subsided for the moment, any sense of calm is likely to be short-lived. The situation remains precarious, and there is no guarantee that the new ruler, radical Islamists, will be any improvement over Assad.

Trump Lifted Sanctions on Syria

In this context, the situation surrounding Trump’s decision to lift sanctions on Syria clearly calls for further comment. Naturally, the lifting of sanctions is expected to promote the country’s economic development. This includes, for example, the removal of sanctions on the Central Bank of Syria, as well as the country’s leading financial institutions and other key structural companies and organizations. On the other hand, the long list of individuals and entities removed from the sanctions list also includes some that were associated with the Assad regime and its policies.

Presidential Executive Order No. 14312 of June 30, 2025, “On the Lifting of Sanctions on Syria”, effectively revises the entire U.S. sanctions framework regarding Syria. On one hand, it states that sanctions targeting Bashar al-Assad personally and “other individuals playing a destabilizing role in the region” remain in force. This is reaffirmed in Trump’s earlier Executive Order No. 13894 of October 14, 2019.

On the other hand, the entire Syrian sanctions program, previously based on Executive Orders No. 13338 (May 11, 2004), 13399 (April 25, 2006), 13460 (February 13, 2008), 13572 (April 29, 2011), 13573 (May 18, 2011), and 13582 (August 17, 2011), has been revoked by Executive Order No. 14312 as of June 30, 2025.

Two Russian Banks Also Removed from the SDN List

Executive Order of June 30, 2025, also removes two Russian banks from the OFAC SDN List: OJSC Tempbank, along with its top executives, and OJSC Russian Financial Alliance Bank (RFA Bank), which is associated with Kirsan Ilyumzhinov.

The Tempbank executives who were simultaneously delisted from the U.S. sanctions list include:
– Former Chairman and founding member Mikhail Gagloev;
– Deputy chairpersons Elena Apanasenko, Nikolay Akhlomov, and Irina Kozhenkova;
– Chairman of the Supervisory Board Andrei Dubinyak;
– Supervisory Board members Elena Zhirova, Dmitry Mityaev, Leonid Reshetnikov, and Vladimir Gagloev.

While the inclusion of Russian banks on the OFAC SDN List has long ceased to surprise anyone, the removal of two Russian banks from the sanctions list, and in one case, along with an extensive list of top executives, is quite unusual. What lies behind such an unexpected move?

Trump’s Call with Putin on July 3, 2025

The situation becomes much clearer when viewed in the context of Trump’s phone call with Putin on July 3, 2025. For nearly six months, the two presidents have been engaged in regular phone conversations, yet these talks have produced no tangible results. Both sides remain firmly entrenched in their respective positions.

The U.S. President continues to insist on a ceasefire in Ukraine as a prerequisite for launching full-scale negotiations, including discussions on the possible lifting of sanctions against Russia. The Russian President, meanwhile, demands that sanctions, particularly those targeting the financial sector, be lifted as a condition for any meaningful progress in the talks.

The deadlock has become so apparent that the U.S. Senate has drafted the most powerful sanctions package ever proposed against Russia. According to recent reports, the bill now has the backing of 84 senators from both parties, well over the three-fourths majority required to override a potential presidential veto.

Against this backdrop, Trump appeared to take another shot at diplomacy by placing a call to his Russian counterpart, someone he referred to as a “good guy” with whom he had “a great relationship,” though “something went wrong.” High-level calls of this nature are typically carefully choreographed, and the lifting of sanctions on Syria just three days earlier, in addition to its stated humanitarian goal of supporting the war-torn economy, may have served another, less obvious purpose: sending a signal to Putin.

First, Syria is a long-standing ally of Russia, where Moscow holds significant investments and strategic interests. Second, and perhaps more importantly, Trump demonstrated that he possesses both the political will and the authority to dismantle an entire sanctions regime targeting a specific country. In this instance, he revoked a complex web of executive orders issued over the course of two decades by multiple U.S. presidents. Finally, the removal of sanctions on two Russian banks, along with the lifting of restrictions on top executives of one of them, sent a clear and pointed message toward Russia.

However, Trump’s gesture failed to produce the desired effect on Putin. In fact, for the first time in the six-month history of these calls, Trump admitted that he had achieved nothing and that he was deeply disappointed with the outcome of the conversation. As a result, momentum has once again shifted toward the introduction of new anti-Russian sanctions.

Conclusion

Although Trump lifted sanctions on Syria, that had no impact on Putin. Whether this move will help rebuild Syria’s devastated economy or, as in the case of Iran, merely fuel the militaristic ambitions of Islamist extremists remains to be seen. We will be closely monitoring the situation as it unfolds.

Meanwhile, if you or your company encounter any issues related to sanctions, don’t hesitate to get in touch with us. We will promptly analyze your case and provide a tailored action plan.