Trump announces the U.S. will end sanctions on Syria

President Trump announced in a speech in Saudi Arabia that he is lifting U.S. sanctions on Syria “to give them a chance.”

Why it matters: Trump’s announcement is a dramatic shift in U.S. policy towards Syria less than six months after the collapse of the Assad regime. The sanctions crippled the Syrian economy and brought the country to the verge of bankruptcy.

Trump is also expected to meet with Syrian President Ahmad al-Sharaa in Riyadh on Wednesday, according to two sources familiar with the plan.

Assad’s son, Bashar al-Assad, was toppled in December in a lightning rebel offensive that brought al-Sharaa to power after 14 years of devastating civil war.

What they’re saying: Trump said he hopes the new Syrian government manages to stabilize the country and keep the peace and stressed he will continue the process of normalization of U.S.-Syrian relations.

“After discussing the situation in Syria with the Crown Prince [Mohammed bin Salman] and also with President Erdogan of Turkey, who called me the other day and asked for a very similar thing … I will be ordering the cessation of sanctions against Syria in order to give them a chance at greatness,” Trump said with the crowd bursting into a standing ovation.

Trump said the sanctions were “brutal and crippling” and served a purpose at the time, but are no longer needed.

“Now it is their time to shine. We are taking them all off. Good luck Syria. Show us something very special,” he said.

Driving the news: When asked by reporters Tuesday if he expects to meet with al-Sharaa during his visit to Saudi Arabia Trump replied: “Yes, I think so.”

“The president agreed to say hello to the Syrian president while in Saudi Arabia tomorrow,” a White House official told The Budgets.

The extraordinary planned meeting between Trump and al-Sharaa — who remains on the U.S. terrorist list due to his past ties with al-Qaeda and ISIS — would mark the first meeting between a U.S. and Syrian president in 25 years.

The last such meeting took place in 2000, when then-President Bill Clinton met with then-Syrian President Hafez al-Assad in Geneva as part of efforts to broker an Israeli-Syrian peace deal.

Trump also said Secretary of State Marco Rubio will meet later this week in Turkey with the Syrian foreign minister.

The big picture: Trump’s new announcement marks a shift in the administration’s policy toward the new Syrian government, which is struggling to rebuild the country under the weight of U.S. sanctions.

In his first few weeks in office, Trump referred to al-Sharaa as “a Jihadi” when speaking with foreign leaders, a source with direct knowledge said.

One of Trump’s stated goals is to fully withdraw all remaining U.S. troops from Syria — a process he started in recent weeks.

A meeting and potential coordination with the Syrian president could accelerate that process.

Behind the scenes: Two sources with knowledge of the issue said Saudi Crown Prince Mohammed bin Salman, along with several countries, including Turkey, Qatar and France, urged Trump to hold the meeting on the sidelines of his summit with Gulf leaders in Riyadh on Wednesday.

State of play: Charles Lister, director of the Syria program at the Middle East Institute, told Axios that the meeting could be a make-or-break moment for a country that urgently needs U.S. engagement and sanctions relief.

“If President Trump wants to bring peace to the Middle East, the departure of Assad’s regime and the near-defeat of Iran in the Levant presents him a historic opportunity — but Damascus will be central to whether that succeeds or fails,” Lister said.

“A Syrian olive branch has been extended for several months; it’s up to Trump whether that’s grasped or not.”

Mouaz Moustafa, the director of the Washington-based Syrian Emergency Task Force, briefed White House officials after meeting with al-Sharaa in Damascus for four hours several days ago.

He told Axios al-Sharaa wants to meet Trump and present his vision for the country, and that he expressed strong interest in partnering with the U.S. on Syria’s energy sector — including a proposal to allow a U.S. entity to manage Syria’s oil and gas fields.

Al-Sharaa emphasized his commitment to preventing Iranian reentry into Syria and continuing close cooperation with the U.S. on counterterrorism efforts, including the handling of ISIS prisoners, Moustafa added.

Between the lines: The meeting with al-Sharaa and the lifting of U.S. sanctions is another instance of Trump defying Israel’s preferred policy, after the U.S. engaged with direct talks with Iran and negotiated a ceasefire with the Houthis.

Israeli Prime Minister Benjamin Netanyahu is deeply skeptical towards the new Syrian government due to al-Sharaa and his advisers’ past affiliation with al-Qaeda.

Israel took over territory inside Syria to create a buffer zone after the collapse of the Assad regime, and has been conducting air strikes on Syrian military bases and weapons depot.