In addition to the maritime services ban targeting Russian Federation-origin crude oil, which we wrote about here[1], the U.S. Department of the Treasury, Office of Foreign Assets Control (“OFAC”) recently has taken actions related to, and having implications for, the international oil sector. Certain of those actions suggest a potential easing of oil sector-related sanctions on Venezuela while others show a continued focus on the Iranian oil sector.Continue Reading Recent OFAC Actions Related to the Oil Sector
Venezuela
U.S. Government Reportedly Taking Steps Toward Limited Easing of Venezuela-Related Sanctions
The U.S. Department of the Treasury, Office of Foreign Assets Control (“OFAC”) is reportedly taking steps toward a limited easing of certain sanctions targeting Venezuela. If the public reporting is accurate, these limited concessions are being made by the Biden administration in connection with the resumption of negotiations between the Maduro regime and Venezuelan opposition leaders regarding the political situation and future elections in Venezuela. As of the date of this blog post, no official U.S. government announcements regarding such measures have been made.
Continue Reading U.S. Government Reportedly Taking Steps Toward Limited Easing of Venezuela-Related Sanctions
District Court Decision Incorrectly Holds that OFAC Sanctions Bar PdVSA from Making Payment on Pre-Sanctions Debts
On February 11, 2020, Judge Stanton of the U.S. District Court for the Southern District of New York denied Dresser-Rand Company’s (Dresser Rand) motion for summary judgment in a suit to collect on a promissory note issued by Petróleos de Venezuela, S.A. (PdVSA). The Court’s decision turned on a finding that payment by PdVSA was legally impossible under U.S. sanctions. That finding was based on incomplete briefing by the parties and appears seriously flawed given the licenses and guidance provided by the Department of Treasury’s Office of Foreign Assets Control (OFAC). We discuss the decision and the U.S. sanctions regime as applied to the promissory note below.
Continue Reading District Court Decision Incorrectly Holds that OFAC Sanctions Bar PdVSA from Making Payment on Pre-Sanctions Debts
US Tightens Controls on US-Origin Components in Goods Exported to Cuba
The U.S. Department of Commerce’s Bureau of Industry and Security has issued a rule, effective immediately, lowering the permissible level of de minimis U.S.-origin content in goods to be exported to Cuba. Items manufactured outside the United States now may have no more than 10% U.S.-origin content (reduced from 25%) if they are to…
United States Designates the Government of Venezuela for Blocking Sanctions
On August 5, 2019, the U.S. Administration imposed blocking sanctions on the Government of Venezuela (“GOV”) under a new executive order. Although named individual officials, the Central Bank of Venezuela, and Petróleos de Venezuela, S.A. (“PdVSA”) were already blocked entities under U.S. sanctions, now all Venezuelan government entities and state-owned enterprises are blocked entities.
Unless…
Venezuela Sanctions Tighten: OFAC Sanctions the Venezuelan Central Bank and Senators Propose Sanctions Legislation
On April 17, 2019, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that the Central Bank of Venezuela has been designated as a specially designated national (SDN) under Executive Order 13850, banning all transactions within U.S. jurisdiction in which it has an interest. As a result, any party who materially assists, sponsors, or provides financial, material, or technological support for, or goods or services to or in support of, the Central Bank of Venezuela now risks designation, whether or not the transaction takes place within U.S. jurisdiction.
Continue Reading Venezuela Sanctions Tighten: OFAC Sanctions the Venezuelan Central Bank and Senators Propose Sanctions Legislation
OFAC Extends Wind Down Periods for Certain Financial Contracts Involving Pre-Sanctions Government of Venezuela Bonds and PdVSA Debt and Equity
On March 8, 2019, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) further amended the general licenses governing secondary trading of pre-sanctions Government of Venezuela (GoV) debt and Petróleos de Venezuela, S.A. (PdVSA) debt and equity by issuing new General Licenses (GL) 3D and…
OFAC Issues New Venezuela General Licenses 3C and 9B and Amends Previous Guidance
Today the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued new general licenses (GL) 3C (amending GL 3B) and GL 9B (amending GL 9A) and amended previously issued FAQ 661 and FAQ 662. The changes clarify that U.S. persons remain prohibited from purchasing or investing in…
OFAC Issues Guidance on PdVSA Designation and Further Restricts Dealings in Venezuelan Debt
On February 1, 2019, the U.S. Department of Treasury’s Office of Foreign Assets Control issued FAQs providing guidance on the designation of Petróleos de Venezuela, S.A. under Executive Order 13850 and concurrent issuance of related general licenses. OFAC also issued amended general licenses governing secondary trading of pre-sanctions Government of Venezuela and PdVSA debt (General…
U.S. Sanctions Venezuelan Oil Industry
On January 28, 2019, the U.S. Department of the Treasury’s Office of Foreign Assets Control designated Petróleos de Venezuela, S.A.; effective immediately PdVSA is on OFAC’s Specially Designated Nationals and Blocked Persons List and all of its assets within U.S. jurisdiction are blocked.
Simultaneously, OFAC issued a number of general licenses intended to mitigate the…