US OFAC extends Citgo protections against creditors

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License 5Z, extending protections for Citgo Petroleum against creditor actions. This new license replaces the previous General License 5Y.

Effective from November 5, 2026, the license authorizes transactions related to Petróleos de Venezuela, S.A. (PDVSA) 8.5% bonds due in 2020, including financing and other related operations. These transactions would otherwise be prohibited under existing U.S. sanctions against Venezuela.

The measure is designed to prevent bondholders or creditors from seizing collateral tied to PDV Holding shares, thereby avoiding the forced sale or seizure of the Citgo refinery without Treasury supervision. While the license permits specific bond-related activities, OFAC clarified that it does not authorize any transactions prohibited by other sections of the Venezuela Sanctions Regulations (VSR) or other federal regulations.