Damascus, July 11 (SANA)U.S. PresidentDonald Trumphas initiated legal procedures to rescind Syria’s designation as a “State Sponsor of Terrorism,” a move that could mark a major shift in U.S.-Syrian economic relations following decades of restrictions after Syria was placed on the list in 1979 due to policies of the ousted regime.

The announcement was made in an official letter addressed by Trump to PresidentAhmad al-Sharaafollowing their summit on the sidelines ofNATOmeetings in Ankara. Under U.S. procedures,Congresswill review the decision for 45 days before it takes effect.

Trump said the move would remove obstacles facing Syria’s reconstruction efforts and noted thatU.S.companies are ready to explore investment opportunities in the country.

The move follows a series of U.S. measures aimed at canceling the sanctions framework imposed onSyria.

Trump signed an executive order on June 30, 2025, ending the related sanctions program, followed by theU.S. Treasury Department’s removal of associated regulations from the Federal Register in August of the same year.

In December 2025, Trump signed the National Defense Authorization Act for fiscal year 2026, which included the full repeal of the Caesar Syria Civilian Protection Act, a sanctions framework that had affected the Syrian economy since 2019.

Economists said removing the designation could have significant effects on Syria’s banking and trade sectors.

Economic expert Abdul Azim al-Mugarbil said the decision could gradually facilitate the return of correspondent banking relations, ease financial transfers and support trade financing.

He added that concerns among international banks and companies over dealing with Syrian entities had previously increased costs linked to imports, shipping and insurance.

Al-Mugarbil said reopening official banking channels could contribute to improving foreign currency flows and supporting economic activity.

Economic expert Khaled Al-Terkawi said the decision sends a positive signal to international investors and could help expand access to technology, financing and development projects.

He noted that lifting the designation would create additional opportunities for reconstruction financing alongside existing European andGulfinitiatives.

The decision was welcomed by Syrian officials, who described the move as the result of sustained diplomatic efforts.

Foreign Minister, Asaad Hassan al-Shaibani, said “a dark page in Syria’s history” had been closed, expressing appreciation to President Trump, U.S. Secretary of State Marco Rubio and AmbassadorThomas Barrack.

Director of the Consular Department, Mohammad al-Omar, said Syrian diplomacy had contributed to restoring Syria’s presence in regional and international affairs, describing the decision as a significant step toward openness and recovery.

Finance Minister,Mohammed Yisr Barnieh, described the decision as a “historic moment” that would support Syria’s economic future.

for his part, Governor of the Central Bank of Syria,Mohammad Safwat Raslansaid the move would open broader prospects for developing a modern financial sector.

Head of the General Authority for Borders and Customs,Qutaiba Badawi,said the decision would strengthen the role of ports and border crossings in supporting trade, while efforts continue to improve logistical infrastructure.

Bahrain, Kuwait, Qatar, the General Secretariat of the Gulf Cooperation Council and the Arab Parliament issued statements welcoming the U.S. announcement on starting procedures to remove Syria’s designation.

The statements said the development could support Syria’s economic recovery and facilitate its return to international financial and economic arena. They also reaffirmed support for Syria’s sovereignty and territorial integrity, expressing hope for greater stability and development.