The new OFAC license establishes limitations and does not allow operations that include non-commercial payment conditions, debt exchanges, payments in gold, or transactions denominated in digital currencies or crypto assets issued by Venezuela, including the petro
The Office of Foreign Assets Control of the United States Department of the Treasury (OFAC) issued General License No. 48, through which it authorizes certain transactions with Petróleos de Venezuela (PDVSA) related to the exploration, development and production of oil and gas in Venezuela, within the framework of the Venezuela Sanctions Regulations (31 CFR part 591).
The new license, issued this Tuesday, February 10, allows, under specific conditions, the provision from the United States or by authorized US persons of goods, technology, software and services linked to oil and gas activities in the country. The transactions involve PDVSA or entities in which the oil company directly or indirectly owns a stake equal to or greater than 50%.
The established requirements indicate that all contracts related to these operations must specify that they will be governed by the laws of the United States or any jurisdiction within that country and that any dispute resolution mechanism will be carried out in the United States.
Regarding payments, any disbursement to blocked persons, with the exception of taxes, permits or local fees, must be made through Foreign Government Deposit Funds, in accordance with executive order 14373 of January 9. Payment can also be made to another account indicated by the US Department of the Treasury.
General License 48 includes, among other activities, the management of payments, the organization of logistics and transportation services, the chartering of vessels, the contracting of marine insurance and protection and indemnity (P&I) coverage, as well as the coordination of port and terminal services, even when these are under government control.
Likewise, the operation and maintenance of oil and gas facilities is authorized, including the repair or reconditioning of equipment used in exploration, development or production activities.
The new OFAC license establishes limitations and does not allow operations that include non-commercial payment conditions, debt exchanges, payments in gold, or transactions denominated in digital currencies or crypto assets issued by the Government of Venezuela, including the petro.
Transactions involving persons or entities located in or under the laws of Russia, Iran, North Korea, Cuba or China are also not authorized, nor are those related to blocked vessels, the creation of new joint ventures in Venezuela, or the export or re-export of diluents to the country.
With information from Digital Finance
*Journalism in Venezuela is carried out in a hostile environment for the press with dozens of legal instruments in place to punish the word, especially the laws “against hate”, “against fascism” and “against the blockade.” This content was written taking into consideration the threats and limits that, consequently, have been imposed on the dissemination of information from within the country.
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