The U.S. State Department announced Friday that Cuba has been formally removed from its list of state sponsors of terrorism, eliminating one of the larger obstacles to restoring diplomatic ties with the country.

Secretary of State John Kerry signed the order to remove Cuba from the U.S. terrorism blacklist 45 days after President Obama informed Congress of his intent to do so, the Associated Press reported.

The removal was one of Cuba's main demands in the effort to normalize relations between the two countries, which President Obama announced in December.

"The United States has significant concerns and disagreements with a wide range of Cuba's policies and actions," the State Department said in a statement regarding the removal. But those concerns "fall outside the criteria relevant to the rescission of a State Sponsor of Terrorism designation."

Along with Cuba now being able to conduct banking in the U.S., the removal ends a prohibition on U.S. economic aid and a ban on U.S. weapons exports. The U.S. is also no longer required to oppose loans to Cuba by financial institutions such as the World Bank and the International Monetary Fund, according to Reuters.

However, the decades-long U.S. trade embargo still remains and can only be ended by Congress.

One official, speaking to Reuters on the condition of anonymity, said the removal is more symbolic than of any practical significance. "As a practical matter, most restrictions related to exports and foreign aid will remain due to the comprehensive trade and arms embargo," the official said.

"The embargo is still the big 800lb gorilla in the room. Lifting the terror designation is a help to foreign banks that are dealing with Cuba and have had that concern, and this may in their mind ease that burden," David Schwartz, chief executive of the Florida International Bankers Association, told The Guardian. "But although the administration is pushing to the limit of what they can do, to go any further would require lifting the embargo."

Washington first put Cuba on its terrorism list in 1982, when the Castro regime supported armed guerrilla movements in Latin America. Cuba stopped providing support following the 1991 collapse of the Soviet Union, a close trade partner and main provider of aide, but still remained on the terror list. Now, only three countries remain on the list -- Iran, Syria and Sudan.