U.S. to allow foreign investment in northeast Syria without sanctions

The United States will allow some foreign investment in areas of northeast Syria outside government control without coming under sanctions, it said on Wednesday, a move it says is aimed at helping a region previously controlled by Islamic State.

The United States has imposed tough sanctions on Syria over the government’s role in the civil war that has raged since 2011 but it has put money into “stabilisation” activities in the areas its allies took from Islamic State.

Investment in areas previously held by the militant group was needed to prevent a resurgence of Islamic State by allowing it to recruit and exploit local grievances.