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[INTERNATIONAL] · United States, Venezuela · 6 sources

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OFAC eases sanctions on Venezuela's oil, mining, and telecom sectors

The United States Office of Foreign Assets Control (OFAC) has issued eight new general licenses to ease sanctions on several key Venezuelan sectors, including oil, gas, mining, and telecommunications.

In the energy sector, the licenses permit US-based entities to engage in the extraction, export, and transport of Venezuelan crude and petrochemical products for import into the United States. This applies to companies partnered with PDVSA or those where the state-owned firm holds a 50% stake. Additionally, the measures allow for the supply of technology, software, and services for oil, gas, and electricity production and distribution.

The mining sector expansion includes licenses 51C and 54B, which authorize the commercialization, transport, and processing of Venezuelan minerals, including gold. US companies may also provide equipment and services for mineral exploration and refining.

Regarding telecommunications, the new provisions allow for specific operations and services related to infrastructure and technology. However, certain restrictions remain: payments for local taxes, royalties, or fees related to crude oil are excluded from these authorizations and must be directed to Treasury-designated accounts to ensure Venezuelan authorities do not maintain direct control over the funds. Furthermore, contracts involving US-origin diluents must stipulate that dispute resolutions occur in the United States, the United Kingdom, France, or Singapore.

Entities

Office of Foreign Assets Control · Petróleos de Venezuela, S.A. · United States · United States Department of the Treasury · Venezuela

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