1 December 2023 United States temporarily authorises transactions involving oil, gas and gold in Venezuela The US Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) recently issued 4 general licenses suspending certain sanctions in relation to transactions involving oil, gas, and gold in Venezuela. This includes a six-month General License No. 44 (“GL 44”) Authorising Transactions Relating to Oil or Gas Sector Operations in Venezuela (available here), which will only be renewed if Venezuela meets its commitments under the electoral roadmap as well as other commitments. I. GENERAL LICENSE 44: OIL AND GAS According to the GL in question, all transactions prohibited by the Venezuela Sanctions Regulations, 31 CFR part 591 (the VSR), including transactions involving Petroleos de Venezuela, S.A. (PdVSA) or any entity in which PdVSA owns, directly or indirectly, a 50 percent or greater interest that are related to oil or gas sector operations in Venezuela are authorised through 12:01 a.m. eastern daylight time, April 18, 2024, including: • Production, lifting, sale, and exportation of oil or gas from Venezuela, and provision of related goods and services; • Payment of invoices for goods or services related to oil or gas sector operations in Venezuela; • New investment in oil or gas sector operations in Venezuela; and • Delivery of oil and gas from Venezuela to creditors of the Government of Venezuela, including creditors of PdVSA Entities, for the purpose of debt repayment. With respect to the shipping industry, the carriage of oil or gas from Venezuela would fall within the scope of “related goods and services” set forth in section (a)(1) of GL 44, provided such carriage does not violate the prohibitions set forth in section (b) of GL 44, which includes the following: • Designated financial institutions. Paragraph (b)(1) provides that GL 44 does not authorise any transactions involving any financial institution blocked pursuant to E.O. 13850 other than Banco Central de Venezuela or Banco de Venezuela SA Banco Universal. • Russia-related operations. Paragraph (b)(2) provides that GL 44 does not authorise the provision of goods or services to, or new investment in, an entity located in Venezuela that is owned or controlled by, or a joint venture with, an entity located in the Russian Federation. Paragraph (b)(3) provides that GL 44 does not authorise any transactions related to new investment in oil or gas sector operations in Venezuela by a person located in the Russian Federation or any entity owned or controlled by a person located in the Russian Federation. See FAQ 1058 (available here) for more information. • Certain financial restrictions in E.O. 13808. Paragraph (b)(4) prohibits any transactions prohibited by subsections 1(a)(i) – (iii) or 1(b) of E.O. 13808, other than the transactions described in GL 44 paragraphs (a)(2) (payment of invoices for goods or services related to oil or gas sector operations in Venezuela) and (a)(4) (delivery of oil and gas for the purpose of debt repayment to creditors). Accordingly, new debt transactions, such as the provision of loans to PdVSA, that are not for the payment of invoices or repayment of debt through delivery of oil or gas, are not authorised by GL 44. See FAQ 533 for a definition of “new debt” under E.O. 13808 and FAQ 511 for examples of debt and equity. • Transactions prohibited by E.O. 13827 and E.O. 13835. Paragraph (b)(5) provides that GL 44 does not authorise any tra