The United States has removed Syria from its list of state sponsors of terrorism, a move UN Deputy Special Envoy for Syria Claudio Cordone said could improve conditions for economic recovery, investment and wider international engagement. The decision allows American financial institutions to serve Syrian clients, process payments involving Syrian banks and establish correspondent banking relationships. Syrian President Ahmed al-Sharaa marked the change by using a Visa card at a café in Damascus’s Old City, while Central Bank Governor Mohammed Safwat Raslan called the delisting a historic step. Most U.S. sanctions had already been lifted, including the termination of the comprehensive sanctions program in mid-2025 and Congress’s repeal of the Caesar Act in December 2025, but the terrorism designation had continued to deter banks and investors. Tellimer said the change was effectively a green light for reconstruction, with banking, technology and telecommunications among the sectors expected to benefit from restored access to SWIFT. The U.S. Treasury said the move could encourage investment and strengthen political and economic stability. Sanctions remain against associates of Bashar al-Assad, human rights violators and captagon smugglers, while Syria remains on the Financial Action Task Force’s grey list over money-laundering concerns. The European Union lifted economic sanctions in May 2025, retained security-related restrictions, fully reactivated its cooperation agreement with Damascus on May 11 and later extended measures against former-regime figures while removing seven entities from its list. Cordone said recovery was accelerating, with double-digit growth projected for 2026, but widespread poverty and renewed inflation continue to weigh on Syrians. He urged preparations for elections at the end of the political transition, greater international support and safe, dignified and voluntary returns. He also condemned continued Israeli military activity in southern Syria, welcomed Israeli-Syrian contacts and talks in Jordan, and backed U.S. mediation on a security arrangement.