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US Prolongs Protection for Venezuelan Oil Bond Transactions
(MENAFN) The US Treasury Department has extended legal protections covering transactions involving bonds issued by Venezuela’s state-owned oil company, Petroleos de Venezuela, S.A. (PDVSA), giving the measure additional time before it expires.
The amended sanctions license issued Wednesday allows transactions involving PDVSA’s 2020 8.5% bonds to continue under the authorized conditions until Nov. 5.
"All transactions related to, the provision of financing for, and other dealings in the Petroleos de Venezuela, S.A. 2020 8.5 Percent Bond that would be prohibited by ... the Venezuela Sanctions Regulations... are authorized" on or after Nov. 5, according to the Office of Foreign Assets Control (OFAC).
The new directive replaces an earlier license issued Aug. 3. That measure prevented creditors from pursuing claims or liquidating collateral connected to the defaulted bonds before the November deadline.
The extension provides continued protection for PDVSA’s assets outside Venezuela. Among the assets covered is a controlling 50.1% stake in Citgo Holding, Inc., the US-based refining subsidiary that was pledged as security for the debt.
The decision comes as Washington’s political and economic engagement with Caracas undergoes major changes.
The renewal follows a series of significant diplomatic developments after a US military operation on Jan. 3 resulted in Venezuelan President Nicolas Maduro being captured and taken to the United States to face federal charges. Washington subsequently recognized an interim administration led by Delcy Rodriguez.
The amended sanctions license issued Wednesday allows transactions involving PDVSA’s 2020 8.5% bonds to continue under the authorized conditions until Nov. 5.
"All transactions related to, the provision of financing for, and other dealings in the Petroleos de Venezuela, S.A. 2020 8.5 Percent Bond that would be prohibited by ... the Venezuela Sanctions Regulations... are authorized" on or after Nov. 5, according to the Office of Foreign Assets Control (OFAC).
The new directive replaces an earlier license issued Aug. 3. That measure prevented creditors from pursuing claims or liquidating collateral connected to the defaulted bonds before the November deadline.
The extension provides continued protection for PDVSA’s assets outside Venezuela. Among the assets covered is a controlling 50.1% stake in Citgo Holding, Inc., the US-based refining subsidiary that was pledged as security for the debt.
The decision comes as Washington’s political and economic engagement with Caracas undergoes major changes.
The renewal follows a series of significant diplomatic developments after a US military operation on Jan. 3 resulted in Venezuelan President Nicolas Maduro being captured and taken to the United States to face federal charges. Washington subsequently recognized an interim administration led by Delcy Rodriguez.
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