Clifford Chance

US Imposes New Financial Sanctions on the Government of Venezuela and PDVSA

27 August 2017

On August 24, 2017, President Trump issued an Executive Order Imposing Additional Sanctions with Respect to the Situation in Venezuela, which prohibits specified dealings by US persons or involving the US financial system with the Government of Venezuela and Petroleos de Venezuela, S.A.. This action was in response to President Maduro's decision to convene a special assembly to re-write the Venezuelan constitution and assume additional powers. The US Treasury Department's Office of Foreign Assets Control also issued four related general licenses that, among other things, provide for the wind-down of existing contracts and authorize certain transactions, particularly with CITGO Holdings, Inc.. According to OFAC, the purpose of the new prohibitions is to stop US persons from contributing to the Government of Venezuela's attempts to sell its assets "for much less than they are worth at the expense of the Venezuelan people and using proceeds from these sales to enrich supporters of the regime."

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