Last Thursday, OFAC published two new Frequently Asked Questions related to the Venezuelan sanctions program. The first one is focused on dealings with PDVSA (Petroleos de Venezuela S.A.), while the second one is about the participation of US persons in meetings about restructuring certain Venezuela governmental and PDVSA debt.
Here they are:
547. Can U.S. Persons participate in meetings about restructuring outstanding Venezuelan and PDVSA debt?
U.S. persons are generally prohibited from engaging in transactions or dealings with persons named on OFAC’s SDN List, including dealing with an SDN in the context of efforts to restructure Venezuelan and Petroleos de Venezuela, S.A. (PdVSA) debt. (See FAQ 505 for additional information). Provided there is no SDN involvement, General License 3 authorizes U.S. persons to engage in all transactions related to bonds specified in the Annex to General License 3, including participating in negotiations regarding such bonds. General License 3 does not authorize any transaction by a U.S. person or within the United States that involves the creation or subsequent dealing in new debt of PdVSA or the Government of Venezuela with a maturity of greater than 90 days or 30 days, respectively, absent a license from OFAC. OFAC would consider license applications involving any such new debt or equity on a case-by-case basis, and base licensing determinations on the facts and circumstances of the particular application. As stated in FAQ 522, the United States government would consider using licensing authority to allow U.S. persons to deal in new debt of the Government of Venezuela approved by the democratically elected Venezuelan National Assembly. [11/09/2017]
548. Subsection 1(a)(i) of E.O. 13808 prohibits U.S. persons from dealing in new debt with a maturity of greater than 90 days of PdVSA. For purposes of E.O. 13808, does the term “PdVSA” include all PdVSA subsidiaries?
Yes. For purposes of E.O. 13808, the prohibition in Subsection 1(a)(i) would apply to PdVSA and extend to all PdVSA subsidiaries, unless authorized by OFAC. Note that General License 2 authorizes certain activities involving specified PdVSA subsidiaries. [11/09/2017]
Mr. Watchlist has no idea why the OFAC Notice has two links when the two FAQs are consecutive and are the last 2 in the section…