Category

Venezuela

Category

On April 17, 2019, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) continued its escalation of sanctions against Venezuela and Nicaragua through the designation of additional parties as Specially Designated Nationals (“SDNs”).  OFAC issued two Venezuelan general licenses (“GLs”), amended certain Venezuelan GLs, and issued one FAQ, as further described below.  A summary of OFAC’s measures is available here, and a related press release issued by the White House is available here.

The US Treasury Department’s Office of Foreign Assets Control (“OFAC”) continues to escalate the use of sanctions against the Maduro regime as well as entities that support the Maduro regime through the designation of high-profile parties as Specially Designated Nationals (“SDNs”).  These designations increase the compliance risks for both US and non-US parties attempting to do business with Venezuela.  Companies should watch out for additional designations under the Venezuelan sanctions, including possible designations of companies in the financial sector, gold sector, or other key sectors of the Venezuelan economy. 

On March 7, 2019, the Federal Register published Presidential Notice of March 5, 2019 Continuation of the National Emergency With Respect to Venezuela, which extends for an additional year the national emergency first declared by Executive Order (EO) 13692 (March 8, 2015) based on the Government of Venezuela’s erosion of human rights guarantees; persecution of political opponents; curtailment of press freedoms;

On January 28, 2019, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) designated Petróleos de Venezuela, S.A. (“PdVSA”) as a Specially Designated National (“SDN”) under Executive Order 13850 of November 1, 2018.  As a result, US Persons are prohibited from dealing with PdVSA as of January 28, unless authorized by OFAC.  (For these purposes, US Persons are entities organized under US laws and their non-US branches; individuals and entities physically located in the United States; US citizens and permanent resident aliens (“Green Card” holders) wherever located or employed.)

On January 31, 2019, OFAC issued eleven new FAQs and amended two existing FAQs in connection with the designation of Petróleos de Venezuela, S.A. (“PdVSA”) as a Specially Designated National (“SDN”) pursuant to Executive Order 13850 on January 28, 2019. In addition, on February 1, 2019, OFAC amended two PdVSA-related general licenses (“GL”) and issued two additional FAQs describing the scope of those amendments, which modify the terms under which certain transactions involving PdVSA bonds and securities are authorized. Our prior blog post on the SDN designation of PdVSA and the previously issued Venezuela GLs is available here.

On January 28, 2019, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) designated Petróleos de Venezuela, S.A. (“PdVSA”) as a Specially Designated National (“SDN”) under Executive Order 13850 of November 1, 2018 because it operates in the Venezuelan oil sector.  As a result, US Persons (i.e., entities organized under US laws and their non-US branches; individuals and entities physically located in the United States; and US citizens and permanent resident aliens (“Green Card” holders) wherever located or employed) are prohibited, in the absence of an OFAC license, from transacting, directly or indirectly, with PdVSA and any entities owned 50% or more by PdVSA (“PdVSA Subs”).  In addition, except as permitted under OFAC licenses, US Persons are required to block property or property interests of PdVSA/PdVSA Subs that are currently in the United States, come within the United States or the possession or control of any US Person.

On July 19, 2018, the Office of Foreign Assets Control (OFAC) issued Venezuela General License 5. General License 5 authorizes US persons to engage in all transactions related to, the provision of financing for, and other dealings in the Petroleos de Venezuela SA 2020 8.5 Percent Bond that would be prohibited by Subsection 1(a)(iii) of  Executive Order (EO) 13835 of May 21, 2018 (“Prohibiting Certain Additional Transactions With Respect to Venezuela”). OFAC also published two new Frequently Asked Questions (FAQs). One explains why…

The WTO announced that Members expressed their concerns over possible measures by the United States regarding extra duties on the import of automobiles, including cars, SUVs, vans, light trucks and automotive parts, at the Council for Trade in Goods (CTG) held on 3 and 4 of July. Over 40 members — including the 28 European Union members — took the floor to warn of the “serious disruption” to world markets and the multilateral trading system that may arise as a result of these potential measures, particularly in light of the large proportion of global trade accounted for by these products. The announcement said: