U.S. authorizes Venezuelan telecom operations as Argentina restricts foreign state control in rail bids

The U.S. Department of the Treasury’s Office of Foreign Assets Control has issued General License Number 61, authorizing telecommunications transactions in Venezuela. This measure allows for the installation, maintenance, and operation of systems involving state entities such as Cantv and Conatel. The license covers internet connectivity, telephony, television, radio, satellite services, and submarine cable maintenance. However, the authorization prohibits the use of cryptocurrencies like the petro, non-commercial payments, or gold. It also restricts negotiations with entities from Russia, Iran, North Korea, Cuba, and China, and forbids the creation of new joint ventures in the sector.

In Argentina, the government of Javier Milei has implemented a restriction in the privatization process for Belgrano Cargas, a railway network spanning 7,594 kilometers. Often referred to as an ‘anti-China clause,’ the regulation prevents companies under the direct or indirect control of foreign governments from bidding for the 50-year concession. The rule applies to state-owned enterprises and companies with significant foreign state involvement, aiming to ensure strategic infrastructure remains outside the control of sovereign foreign states.