A merican Club Circular No . 1 4 /23 1 OCTOBER 23, 2023 CIRCULAR NO. 14/23 TO MEMBERS OF THE ASSOCIATION Dear Member: UNITED STATES TEMPORARILY AUTHORIZES TRANSACTIONS INVOLVING OIL, GAS AND GOLD IN VENEZUELA This Circular provides information in conjunction with US Department of the Treasury’s Office of Foreign Assets Control (“OFAC”)’s recent issuance of 4 general licenses suspending certain sanctions in relation to transactions involving oil, gas, and gold i n Venezuela. This includes a six-month General License No. 44 (“GL No. 44”) Authorizing 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 with respect to those who are wrongfully detained. 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 authorized 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. A merican Club Circular No. 14/23 2 However, GL 44 also reiterates the following prohibitions, which are unaffected by the authorizations outlined above: • Designated financial institutions. Paragraph (b)(1) provides that GL 44 does not authorize 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 authorize 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 authorize 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 2 Related to Suspension of Certain U.S. Sanctions with Respect to Venezuela on October 18, 2023 (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 authorized by GL 44. See FAQ 533 for a definition of “new debt” under E.O. 13808 and FAQ 511