Skip to main content
Menu Icon Menu Icon

InfoBytes Blog

Financial Services Law Insights and Observations

OFAC issues new general licenses related to Russia and Venezuela sanctions

Financial Crimes Of Interest to Non-US Persons OFAC OFAC Designations OFAC Sanctions Department of Treasury Russia Venezuela

Financial Crimes

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) recently released two general licenses relating to Russia and Venezuela. Newly issued Russia-related General License (GL) 69 authorizes certain debt securities servicing transactions issued by an identified bank that would otherwise be prohibited by Executive Order (E.O.) 14024. Interest or principal payments on the authorized transactions cannot be made to persons located in the Russian Federation, and any payments made to a blocked person must be done in accordance with the Russian Harmful Foreign Activities Sanctions Regulations regardless of where the person is located.

Additionally, OFAC also issued GL 8L, which authorizes transactions involving Petróleos de Venezuela, S.A. (PdVSA) that are deemed necessary for the wind down of operations in Venezuela for certain entities. While authorizing some transactions, GL 8L also includes a comprehensive list of transactions that are not authorized, including “[a]ny loans to, accrual of additional debt by, or subsidization of PdVSA, or any entity in which PdVSA owns, directly or indirectly, a 50 percent or greater interest, including in kind, prohibited by E.O. 13808 of August 24, 2017, as amended by E.O. 13857, and incorporated into the [Venezuela Sanctions Regulations].”