Washington Eases Sanctions on PDVSA and Conviasa

This Thursday, the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced the issuance of two new licenses authorizing some transactions with Petróleos de Venezuela (PDVSA) and the publicly-owned airline Conviasa.

According to OFAC, General License 8M, signed this Thursday, November 16, Washington authorizes “Transactions Involving Petróleos de Venezuela, SA (PDVSA) necessary for the limited maintenance of essential operations in Venezuela or the wind down of operations in Venezuela for certain entities.”

However, PDVSA is not authorized to drill, lift, process, purchase, sell, transport, or ship any oil or derivative products of Venezuelan origin, except for reasons related to the safety and preservation of assets.

The license involves PDVSA or any entity directly or indirectly owned by the company with a stake of 50% or more and will be valid until May 16, 2024. It also clarifies that the license is intended for the following US oil corporations alone: Halliburton, Schlumberger Limited, Baker Hughes Holdings LLC, and Weatherford International Public Limited Company.

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Similarly, OFAC published General License 45A, “Authorizing Certain Transactions Involving Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, SA (Conviasa).”

According to the license, “all transactions ordinarily incidental and necessary to the repatriation of Venezuelan nationals from non-US jurisdictions in the Western Hemisphere” are permitted, and “all transactions ordinarily incidental and necessary for the general maintenance (including repair) of the blocked aircraft.”

Additionally, the asset control office is publishing an updated document, related to the “Frequently Asked Questions Related to the Suspension of Certain US Sanctions with Respect to Venezuela on October 18, 2023.”

The renewal of licenses is not a novelty, but rather, an update of the license management process that the Biden administration has been applying in order to not lift the illegal sanctions against Venezuela. The process allows controlled economic, financial, and commercial movements aligned with the White House’s economic and electoral calculations.

(Misión Verdad) with Orinoco Tribune content

Translation: Orinoco Tribune

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