Venezuela Sanctions

Venezuela Sanctions

933

Answer

No.  The authorizations in paragraph (a) of Venezuela-related General Licenses (GLs) 7C (“Authorizing Certain Activities Involving PDV Holding, Inc. and CITGO Holding, Inc.”) and 20B (“Authorizing Official Activities of Certain International Organizations Involving the Government of Venezuela”), respectively, have not expired and remain in effect.  The activities described in paragraph (a) of GLs 7C and 20B, respectively, are authorized for an 18-month period, which renews automatically for an additional 18 months on the first day of each month, unless the respective GL is modified or revoked.

In the case of GL 7C, the authorization in paragraph (b), which relates to the purchase and importation of petroleum and petroleum products from Petróleos de Venezuela, S.A., expired on April 28, 2019.  The authorization in GL 7C paragraph (b) does not automatically renew and is no longer in effect.

Date Released
October 1, 2021

915

Answer

For purposes of Venezuela GL 40, the term liquefied petroleum gas refers to the definition provided by the U.S. Energy Information Administration – a group of hydrocarbon gases, primarily propane, normal butane, and isobutane, derived from crude oil refining or natural gas processing. These gases may be marketed individually or mixed. They can be liquefied through pressurization (without requiring cryogenic refrigeration) for convenience of transportation or storage. The definition excludes ethane and olefins. 

Date Released
July 12, 2021

914

Answer

No. Non-U.S. persons would not risk exposure under U.S. sanctions for engaging in activities or facilitating transactions or payments for such activities that would be authorized for U.S. persons pursuant to Venezuela GL 40.

Date Released
July 12, 2021

909

Answer

For the purposes of Venezuela GL 39A, transactions and activities related to the prevention, diagnosis, or treatment of COVID-19 in Venezuela include, for example:  the export or import of goods and services, and transactions and activities related thereto, in each case that would otherwise be prohibited due to the involvement of the Government of Venezuela, certain blocked financial institutions as described in Venezuela GL 39A, or both, provided all conditions and limitations in the GL are satisfied.

COVID-19-related goods or technology include, for example:  medical gowns; medical eye shields and goggles; surgical gloves; face shields; respirators and masks such as N95, N99, and N100 masks; personal hygiene products such as soap and hand sanitizer and other water, sanitation, and hygiene supplies; vaccines and vaccine ingredients or components required for the production of vaccines; equipment, supplies, and containers for transporting, storing, and administering vaccines; personal protective equipment; COVID-19 testing kits and equipment, software and technology for processing such kits; equipment, software, and technology for diagnostic imaging tests; ventilators or components thereof; oxygen tanks and supplies to deliver oxygen; supplies, medicines, or other therapies to treat COVID-19; and field hospitals or mobile medicals units, provided that all conditions and limitations of Venezuela GL 39A are satisfied.  

COVID-19-related services include, for example:  treatment of patients with suspected or confirmed COVID-19; training necessary to the safe and effective use of goods for use in connection with the prevention, diagnosis, or treatment of COVID-19; conduct of research into COVID-19; services necessary for the operation, maintenance, or repair of goods for use in connection with the prevention, diagnosis, or treatment of COVID-19; collaboration on the development or enhancement of information related to COVID-19 to the extent not authorized or exempt; development of medical devices or medicines to counteract COVID-19; conduct of clinical studies in connection with COVID-19; provision of public education in connection with COVID-19; disposal of medical waste in connection with COVID-19; water, sanitation, and hygiene promotion materials and supplies, and shelter activities to prevent or treat COVID-19, including Risk Communication and Community Engagement efforts related to COVID-19, and other goods and services, directly related to prevention or treatment of COVID-19; provided all conditions and limitations in Venezuela GL 39A are satisfied. 

Other transactions and activities related to the prevention, diagnosis, or treatment of COVID-19 in Venezuela include, for example, when in connection with COVID-19-related goods, technology, or services:  processing and transfer of funds, payment of taxes, fees, and import duties; purchase or receipt of permits, licenses, or public utility services; making of shipping or cargo inspection arrangements; obtaining of insurance; arrangement of financing and payment; shipping of goods; delivery of services; receipt of payment; and entry into contracts (including executory contracts), provided all conditions and limitations in Venezuela GL 39A are satisfied.

As noted in Venezuela GL 39A, this general license does not authorize the unblocking of any property blocked pursuant to any part of 31 CFR chapter V, including property of the Government of Venezuela or certain specified blocked financial institutions listed in Venezuela GL 39A. 

Updated: June 10, 2022

Date Released
June 17, 2021

854

Answer

On November 30, 2020, OFAC designated CEIEC pursuant to Executive Order (E.O.) 13692 for its role in undermining democracy in Venezuela.  Concurrent with this action, OFAC issued Venezuela General License (GL) 38 (“Authorizing the Wind Down of Transactions Involving CEIEC”).  GL 38 authorizes U.S. persons to engage in all transactions and activities prohibited by E.O. 13692 that are ordinarily incident and necessary to the wind down of transactions and activities involving CEIEC, or any entity in which CEIEC owns, directly or indirectly, a 50 percent or greater interest (collectively, Blocked CEIEC Entities), through 12:01 a.m. eastern standard time, January 14 , 2021.

After the expiration of this authorization, unless exempt or authorized by OFAC, U.S. persons will be prohibited from engaging in transactions with the Blocked CEIEC Entities, and must block property or interests in property of such entities that are in, or come within, the United States, or the possession or control of a U.S. person.

Non-U.S. persons may wind down transactions and activities with the Blocked CEIEC Entities without exposure to sanctions under E.O. 13692, provided that such wind-down activity is: (i) consistent with GL 38; and (ii) completed prior to 12:01 a.m. eastern standard time, January 14, 2021.  Entering into new business involving the Blocked CEIEC Entities will not be considered wind-down activity.  Non-U.S. persons unable to wind down activities with the Blocked CEIEC Entities before 12:01 a.m. eastern standard time, January 14, 2021, may seek guidance from OFAC.

Date Released
November 30, 2020

834

Answer

On June 18, 2020, OFAC designated pursuant to E.O. 13850, among other entities and individuals, two entities for operating in the oil sector of the Venezuelan economy and identified two vessels owned by these entities as blocked property. Concurrent with this action, OFAC issued General License (GL) 37​, which authorizes U.S. persons to engage in transactions and activities prohibited by E.O. 13850, as amended by E.O. 13857​ and incorporated into the Venezuela Sanctions Regulations, that are ordinarily incident and necessary to the wind down of transactions involving the blocked persons or vessels listed in paragraph (b) of GL 37 through 12:01 am eastern daylight time, July 21, 2020.

The wind-down authorization in GL 37 includes, for example, completion of ongoing voyages, including discharge of cargo aboard such vessels as of June 18, 2020; docking or anchoring of the vessels at third-country, non-sanctioned ports; transactions related to the safety and maintenance of the vessels, such as entering into contracts and paying for insurance coverage, flagging, and safety and compliance inspections; and transactions related to the health and safety of any crew, including the provision and processing of wages or other employee benefits, or other provision of crewing services.

After the expiration of this authorization U.S. persons will be prohibited from engaging in all transactions with the persons or vessels listed in paragraph (b) of GL 37 that are not exempt or authorized by OFAC. U.S. persons unable to wind down transactions with the persons or vessels listed in paragraph (b) of GL 37 before 12:01 a.m. eastern daylight time, July 21, 2020, are encouraged to seek guidance from OFAC.

Non-U.S. persons may wind down transactions with the persons or vessels listed in paragraph (b) of GL 37 without exposure to sanctions under E.O. 13850, provided that such wind-down activity is consistent with GL 37. Entering into new contracts involving the persons or vessels listed in paragraph (b) of GL 37 is not authorized under GL 37, unless such contracts are for wind-down activity authorized in paragraph (a). Non-U.S. persons unable to wind down transactions with the persons or vessels listed in paragraph (b) of GL 37 before 12:01 a.m. eastern daylight time, July 21, 2020, are encouraged to seek guidance from OFAC.
 

Date Released
June 18, 2020

818

Answer

OFAC issued General License(GL) 36A, which authorizes U.S. persons to engage in certain activities prohibited by E.O. 13850​ necessary for the wind down of transactions involving Rosneft Trading S.A. or TNK Trading International S.A., or any entity in which Rosneft Trading S.A. or TNK Trading International S.A., owns, directly or indirectly, a 50 percent or greater interest, through 12:01 a.m. eastern daylight time, May 20, 2020 (a prior version of this GL, GL 36, was issued concurrently with the designation of Rosneft Trading S.A. and authorized certain wind-down activities as well). After the expiration of this authorization, unless exempt or authorized by OFAC, U.S. persons will be prohibited from engaging in transactions with Rosneft Trading S.A. or TNK Trading International S.A., or any entity in which Rosneft Trading S.A. or TNK Trading International S.A. owns, directly or indirectly, a 50 percent or greater interest, and must block property or interests in property of Rosneft Trading S.A. and TNK Trading International S.A. that are in, or come within, the United States, or the possession or control of a U.S. person.

Non-U.S. persons may wind down transactions with Rosneft Trading S.A. or TNK Trading International S.A. without exposure to sanctions under E.O. 13850, provided that such wind-down activity is: (i) consistent with General License 36A; and (ii) completed prior to 12:01 a.m. eastern daylight time, May 20, 2020. Entering into new business involving Rosneft Trading S.A. or TNK Trading International S.A. will not be considered wind-down activity. Non-U.S. persons unable to wind down activities with Rosneft Trading S.A. or TNK Trading International S.A. before 12:01 a.m. eastern daylight time, May 20, 2020, may seek guidance from OFAC.

Date Released
March 12, 2020

817

Answer

On February 18, 2020, OFAC designated Rosneft Trading S.A. pursuant to E.O. 13850 for operating in the oil sector of the Venezuelan economy. Likewise, on March 12, 2020, OFAC designated TNK Trading International S.A. pursuant to E.O. 13850 for operating in the oil sector of the Venezuelan economy.

General License 36Aauthorizes U.S. persons to engage in certain activities prohibited by E.O. 13850 necessary for the wind down of transactions involving Rosneft Trading S.A. or TNK Trading International S.A., or any entity in which Rosneft Trading S.A. or TNK Trading International S.A. owns, directly or indirectly, a 50 percent or greater interest, through 12:01 a.m. eastern daylight time, May 20, 2020. After the expiration of this authorization, unless exempt or authorized by OFAC, U.S. persons will be prohibited from engaging in transactions with Rosneft Trading S.A. or TNK Trading International S.A., or any entity in which Rosneft Trading, S.A. or TNK Trading International S.A. owns, directly or indirectly, a 50 percent or greater interest, and must block property or interests in property of Rosneft Trading S.A. and TNK Trading International S.A. that are in, or come within, the United States, or the possession or control of a U.S. person. As Rosneft Trading S.A. and TNK Trading International S.A. are also identified on the Sectoral Sanctions Identifications List (SSI List) pursuant to Directives 2 and 4 to E.O. 13662 under the Ukraine-/Russia-related sanctions program, those winding down transactions with Rosneft Trading S.A. or TNK Trading International S.A. should ensure that all activities comply with any applicable Directive 2 and 4 prohibitions, because General License 36A only authorizes certain activities necessary to the wind down of transactions prohibited by E.O. 13850.

The E.O. 13850 blocking sanctions apply only to Rosneft Trading S.A. and TNK Trading International S.A., or any entity in which Rosneft Trading S.A. or TNK Trading International S.A. owns, directly or indirectly, a 50 percent or greater interest. Blocking sanctions do not apply to these entities’ ultimate parent, Rosneft Oil Company. Similarly, blocking sanctions do not apply to Rosneft Oil Company or other subsidiaries or affiliates, provided that such entities are not owned 50 percent or more in the aggregate by one or more blocked persons or otherwise explicitly designated or identified by OFAC.

U.S. persons, therefore, are not prohibited under E.O. 13850 from dealing with Rosneft Oil Company, its non-blocked subsidiaries, or non-blocked affiliates to the extent the proposed dealings do not involve any blocked persons or any other activities prohibited pursuant to any OFAC sanctions authorities. As Rosneft Oil Company, Rosneft Trading S.A., and TNK Trading International S.A. have been listed on the SSI List since July 2014, July 2015, and March 2020 respectively, they are subject to Ukraine-/Russia-related Directives 2 and 4. U.S. persons should be mindful of the relevant Ukraine-/Russia-related prohibitions that would be applicable as a result of dealings with both Rosneft Oil Company, Rosneft Trading S.A., and TNK Trading International S.A. See, generally,FAQs 370-373, 391-396, 405-410, 412-421, and 536-538 for prohibitions on U.S. persons dealing with entities listed on the SSI List. See alsoFAQs 398 and 400 for information regarding dealings with blocked persons representing non-blocked entities.

Date Released
March 12, 2020

660

Answer

The path to sanctions relief for PdVSA and its subsidiaries is through the expeditious transfer of control of the company to Interim President Juan Guaidó or a subsequent, democratically elected government that is committed to taking concrete and meaningful actions to combat corruption, restore democracy, and respect human rights. A bona fide transfer of control will ensure that the assets of Venezuela are preserved for the country’s people, rather than misused and diverted by former President Nicolas Maduro. Treasury will continue to use its economic tools to support Interim President Guaidó, the National Assembly, and the Venezuelan people’s efforts to restore their democracy.

Date Released
January 31, 2019

659

Answer

General License 12​ authorizes, until 12:01 a.m. eastern standard time, February 27, 2019, all transactions and activities that are ordinarily incident and necessary to the wind down of operations, contracts, or other agreements that were in effect prior to January 28, 2019. This authorization includes the importation into, or the exportation from, the United States of goods, services, or technology (other than the exportation of diluents) involving PdVSA or any entity in which it owns, directly or indirectly, a 50 percent or greater interest (other than ALBA de Nicaragua (ALBANISA) or any entity in which ALBANISA owns, directly or indirectly, a 50 percent or greater interest)

Date Released
January 31, 2019