Biden Admin Issues Venezuela-Related Oil Export License, Mum on Cuba Sanctions
The Treasury Department issued a new general license authorizing certain exports and reexports of oil to the Venezuelan government and Petroleos de Venezuela, the country’s state-run energy company. General License No. 40, issued July 12, authorizes transactions related to indirect or direct exports and reexports of liquefied natural gas to PdVSA and any entity it owns by 50% or more. The transactions are authorized through 12:01 a.m. July 8, 2022.
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The Office of Foreign Assets Control defines liquefied petroleum gas as a “group of hydrocarbon gases, primarily propane, normal butane, and isobutane, derived from crude oil refining or natural gas processing,” according to newly issued frequently asked question 915. The gases can be “marketed individually or mixed” and can be liquefied through pressurization “for convenience of transportation or storage.” The definition doesn’t include ethane and olefins.
In new FAQ 914, OFAC said non-U.S. persons don’t risk sanctions exposure “for engaging in activities or facilitating transactions or payments for such activities” that would normally be authorized under General License No. 40. But the license doesn’t authorize any “payment-in-kind of petroleum or petroleum products” or any transactions otherwise blocked by the Venezuela Sanctions Regulations or involving other blocked people or entities.
Along with the license, the Biden administration stressed this week that exemptions are available for certain transactions involving remittances to Cuba but didn't commit to lifting any Cuba sanctions. The Trump administration last year introduced the restrictions (see 2010230024 and 2009230029), which have been under review by the Biden administration (see 2106110028).
“There are a number of exemptions -- humanitarian assistance, medical supplies -- that we continue to provide assistance to the people of Cuba, even with [the restrictions] in place,” White House Press Secretary Jen Psaki told reporters July 12. “But I have nothing to preview for you in terms of a change of policy.”