On January 28, 2019, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) designated Petróleos de Venezuela, S.A. (“PdVSA”) as a Specially Designated National (“SDN”) under Executive Order 13850 of November 1, 2018 because it operates in the Venezuelan oil sector. As a result, US Persons (i.e., entities organized under US laws and their non-US branches; individuals and entities physically located in the United States; and US citizens and permanent resident aliens (“Green Card” holders) wherever located or employed) are prohibited, in the absence of an OFAC license, from transacting, directly or indirectly, with PdVSA and any entities owned 50% or more by PdVSA (“PdVSA Subs”). In addition, except as permitted under OFAC licenses, US Persons are required to block property or property interests of PdVSA/PdVSA Subs that are currently in the United States, come within the United States or the possession or control of any US Person.Read more…
Second Iran Sanctions Wind-Down Period Ends and United States Completes Full Re-Imposition of Sanctions on Iran
On November 5, 2018, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) took several actions to finalize the re-imposition of sanctions against Iran in response to President Trump’s May 8, 2018 decision to cease the United States’ participation in the Joint Comprehensive Plan of Action (“JCPOA”). See our previous blog posts here regarding the President’s May 8, 2018 decision to cease the United States’ participation in the JCPOA and here regarding Executive Order (“EO”) 13846, issued on August 6, 2018, which consolidated and reissued several sanctions provisions that had been suspended or revoked while the JCPOA was in effect.Read more…
US Government Warns About North Korea Links in Supply Chains and Related Sanctions Risks
The US Departments of State, Treasury, and Homeland Security warned companies in a new advisory that deceptive practices by North Korea to evade US, UN, and other sanctions could put them at risk of prohibited or sanctionable dealings with the North Korean regime. The advisory published on July 24, 2018 follows February 2018 guidance from the US Treasury Department’s Office of Foreign Assets Control regarding certain deceptive shipping practices of North Korea to avoid US sanctions (see our prior blog post here). The new advisory encourages companies to undertake enhanced due diligence within their supply chains to avoid prohibited or sanctionable: (i) sourcing of goods, services, or technology from North Korea and (ii) use of the labor of North Korean citizens or nationals, which is presumed to be forced labor, regardless of where such labor occurs.Read more…
US Government Prohibits Certain Dealings in Venezuelan Government Debt and Equity
On May 21, 2018, the President signed a new Executive Order (the “Order”) related to Venezuela entitled “Prohibiting Certain Additional Transactions with Respect to Venezuela.” According to a statement from the White House, this action is intended to “prevent the Maduro regime from … liquidating Venezuela’s critical assets.” These new US financial sanctions were imposed after Venezuela held elections this past weekend that were described as “fraudulent” in a press statement from the US State Department. Please see our prior blog posts concerning the previous Venezuela-related Executive Orders: (i) Executive Order 13827 of March 19, 2018 here, (ii) Executive Order 13808 of August 24, 2017 here, and (iii) Executive Order 13692 of March 8, 2015 here.Read more…