REPORT ON THE UPDATING OF SANCTIONS AGAINST VENEZUELA
With regard to sanctions against Venezuela, the following novelties have occurred:
1. The Office of Foreign Assets Control (OFAC) has issued General License 9F, dated September 30th 2019, which authorizes operations in the following areas:
a) Except as provided in paragraphs f) and g) of this text, the activities prohibited by Section l (a) (iii) of the Executive Order, (hereinafter O.E.) No. 13808 of August 24, 2017, or by O.E. No. 13850 of November 1, 2018, as amended by O.E. 13857 of January 25, 2019 and by O.E. No. 13808 of August 24, 2017, or by O.E. No. 13850 of November 1, 2018, as amended by O.E. 13857 of January 25, 2019 and by O.E. No. 13808 of August 24, 2017, or by O.E. No. 13850 of November 1, 2018, as amended by O.E. 13857 of January 25, 2019 and by O.E. No. 13808 of August 24, 2017.E 13884, of August 5, 2019, respectively, that are “ordinarily incident and necessary” for the collection of debts -of PDVSA or of companies belonging to PDVSA, directly or indirectly- issued before August 25, 2017, provided that the transfer operation is carried out by a non U.S. person.
b) Except as provided in section g) of this text, the transactions and activities prohibited by Section 1 (a) (iii) of E.O. no. 13808 and by E.O. no. 13850 mentioned above, as amended by E.O. no. 13884, are authorized, provided that they are necessary to offset, facilitate or settle PDVSA securities holding transactions before 01/28/2019.
c) Except as provided in paragraph g) of this text, all transactions and activities prohibited by Section l(a) (iii) of E.O. No. 13808 or by E.O. No. 13850 mentioned above, necessary to settle financial or other agreements made before January 28, 2019, involving PDVSA, are authorised. This authorisation is valid until 31st March 2020.
d) Except as provided in paragraph g) of this text, all transactions and activities prohibited by Section 1 (a) (iii) of E.O. No. 13808 or E.O. No. 13850 referred to, as amended by E.O. 13857 and E.O. 13884, respectively, which are “ordinarily incident and necessary” to deal with any type of bond issued before August 25th 2017 by POV Holdings Inc, CITGO Holdings Inc., Nynas AB, or any of its subsidiaries, are authorised.
e) Subparagraph a) of this General License does not authorise:
i. US persons to sell or facilitate the sale of PdVSA securities to any person, directly or indirectly, whose property and interests in property are blocked pursuant to E.O. No. 13850, as amended by E.O. No. 13884.
ii. US. persons to purchase, invest, or facilitate the purchase or investment in, directly or indirectly, the securities of PdVSA, other than purchases or investments in PdVSA that are “ordinarily incident and necessary” for the disposal or transfer of shares in PdVSA.
f) Furthermore, this General License does not authorise:
i. The release of any blocked property pursuant to any part of Chapter V of the Code of Federal Regulations (hereinafter C.F.R.) 31, except as authorised in paragraphs (a), (c), (d), and (e).
ii. Any transaction otherwise prohibited by E.O. No. 13884, 13850, 13808 above, and E.O. No. 13835 of May 21, 2018, E.O. No. 13827 of March 19, 2018, and E.O. No. 13692 of March 8, 2015, each as amended by E.O. No. 13857 of May 21, 2018.
iii. Any transaction part of C.F.R. 31 Chapter V.
iv. Any transaction with any blocked person other than the transactions in which the Government of Venezuela participates, including the Central Bank of Venezuela, PdVSA, or any entity in which PdVSA owns, directly or indirectly, 50% or more.
g) As of September 30, 2019, General License No. 9E, dated August 5, 2019, is replaced in its entirety by General License No. 9F, dated September 30, 2019.
2. On October 1, 2019, OFAC issued the 3G General License authorizing transactions relating to the provision of funds and the transaction of specific bonds in the following areas:
a) Except as provided in paragraphs e) and f) of this document, authorization is granted for the aforementioned transactions prohibited by paragraph I (a) (iii) of O.E. 13808 or by O.E. 13850 mentioned above, as amended by O.E. 13857 and by O.E. 13884, respectively. Transactions must be made to non U.S. Persons.
b) Except for the content of paragraph f) of this document, the U.S Persons are authorised to carry out the transactions prohibited by subsection I a) (iii) of O.E no. 13808 or by O.E no. 13850 mentioned above. They must be transactions necessary to facilitate, offset or settle the holding of 3G GL Bonds, provided that such transactions have taken place before 1 February 2019.
c) Except for the contents of paragraph f) of this document, you are authorized to carry out the transactions related to the provision of financing and transaction of 3G GL Bonds prohibited in subsection I a) (iii) of O.E nº 13808 or by O.E nº 13850 cited, with their respective amendments, valid until March 31, 2020.
d) Except for the contents of section f) of this document, the financing provisions and bond transactions issued before 08/25/17 by U.S. persons directly or indirectly controlled by the Government of Venezuela are authorised, except for the companies Nynas AB, PDV Holding, Inc. (PDVH), CITGO Holding, Inc. and any of its subsidiaries.
e) They are not authorised:
i. U.S. persons who sell or provide 3G GL Bonds to persons whose assets and interests are blocked by E.O. No. 13850, as amended by E.O. No. 13857, or by E.O. No. 13884.
ii. U.S persons purchasing, investing or facilitating the purchase of 3G GL Bonds, with the exception of those necessary for the settlement or transfer of shares in 3G GL Bonds.
f) Not authorised:
i. The unblocking of a blocked good in accordance with Chapter V of C.F.R. 31, except as authorised by its paragraphs (a), (b), (c), and (d).
ii. Any transaction prohibited by E.O. No. 13884,13850, 13808, 13835, 13827 and 13692 above, as amended.
iii. Any transaction part of C.F.R. 31 Chapter V.
iv. Any transaction or deal with any blocked person other than transactions involving the Government of Venezuela, including the Central Bank of Venezuela.
g) As of September 30, 2019, General License No. 3F dated August 5, 2019 is replaced in its entirety by this General License No. 3G.
Madrid, 11th October, 2019 International Department
