The U.S. Treasury Department ("Treasury") Office of Foreign Assets Control ("OFAC") extended the expiration date of a General License ("GL") involving PDV Holding, Inc. ("PDVH") and CITGO Holding, Inc. ("CITGO").
GL 7A, which replaces GL 7, authorizes certain transactions and activities prohibited by Executive Order 13850 as they relate to PDVH, CITGO and any of their subsidiaries. GL 7A replaces the July 27, 2019 expiration date in paragraph (a) of GL 7 with an 18-month authorization that renews automatically on a monthly basis - although OFAC may revoke this authorization at any time. According to Treasury, the change is designed to "enable CITGO to maintain operations in markets that are based on long-term planning and contractual commitments." On January 28, 2019, OFAC designated the Venezuelan state-owned oil company Petróleos de Venezeula, S.A. (PdVSA) the ultimate parent company of both PDVH and CITGO.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.