On May 5, 2026, the US Department of the Treasury’s Office of Foreign Assets Control (“OFAC“) issued General License No. 58 (“GL 58“), authorizing transactions ordinarily incident to the provision of certain services in connection with potential debt restructuring of the Government of Venezuela. GL 58 provides a limited authorization for specified transactions, subject to conditions and exclusions, and reflects OFAC’s continued use of general licenses to relax US sanctions on Venezuela.
Our prior blog posts related to the ongoing developments and relaxations of sanction restrictions targeting Venezuela are available here, here, here, and here.
Scope of Authorization
GL 58 authorizes the provision of certain legal, financial advisory, and consulting services that are ordinarily incident and necessary to the potential restructuring of debt of the Government of Venezuela, subject to specified conditions and limitations. The authorized services may be made to the Government of Venezuela, including Petróleos de Venezuela, S.A. (“PdVSA“) and any entity in which PdVSA owns, directly or indirectly, a 50 percent or greater interest.
The authorization applies only to transactions that meet the transactions ordinarily incident to the provision of the services described above and subject to the criteria in the license. The general license does not provide a blanket authorization for dealings with sanctioned persons or across the sanctioned jurisdiction more broadly.
Key Limitations and Conditions
The activities authorized under GL 58 are subject to the following important conditions and limitations (though some of these activities may be authorized under other general licenses):
- The general license does not:
- Authorize the restructuring, transfer, or settlement of debt of the Government of Venezuela, including debt of PdVSA and PdVSA Entities, or direct negotiations between the Government of Venezuela, including PdVSA and PdVSA Entities, and creditors regarding such restructuring, transfer, or settlement;
- Authorize payment terms for services provided under GL 58 that are not commercially reasonable, involve debt swaps or payments in gold, or are denominated in digital currency, digital coin, or digital tokens issued by, for, or on behalf of the Government of Venezuela, including the petro;
- Authorize transactions involving individuals or entities that remain blocked pursuant to OFAC, unless expressly identified in the license;
- Permit transactions prohibited under other US sanctions programs, export controls, or non‑OFAC restrictions;
- The general license generally excludes transactions involving the transfer of funds through blocked accounts unless otherwise authorized; and
- The general license may revoked or modified at any time by OFAC.
Takeaways
GL 58 provides targeted sanctions relief, but it does so within a limited framework to allow the Government of Venezuela and entities owned 50% or more by the Government of Venezuela (such as PdVSA and its wholly- or majority-owned direct and indirect affiliates) access to certain service providers with a US nexus to provide debt restructuring services. Companies considering relying on GL 58 to engage in certain transactions that were previously restricted should evaluate the practical impact of the authorization in light of their existing exposure, risk tolerance, and compliance infrastructure.
As US policy regarding Venezuela continues to develop, we remain closely monitoring these developments and will continue to update this blog as and when new actions are taken. Please visit our Venezuela Brief for the latest insights and resources.
