Alerts and Updates
By virtue of the new Executive Order, all transactions related to, provision of financing for and other dealings by a United States person or within the United States are prohibited.
President Donald Trump signed an Executive Order (E.O.) imposing additional prohibitions relating to the transaction of business with the Government of Venezuela on May 21, 2018. The order imposes restrictions on transactions with Venezuela in addition to those already in place pursuant to Executive Order 13692 (March 8, 2015), Executive Order 13808 (August 24, 2017) and Executive Order 13827 (March 19, 2018).
By virtue of the new E.O., all transactions related to, provision of financing for and other dealings by a United States person or within the United States are prohibited (unless authorized by statute, or in regulations, orders, directives or licenses that may be issued pursuant to the action taken by the president):
- The purchase of any debt owed to the Government of Venezuela, including accounts receivable;
- Any debt owed to the Government of Venezuela that is pledged as collateral after the effective date of the E.O., including accounts receivable; and
- The sale, transfer, assignment or pledging as collateral by the Government of Venezuela of any equity interest in any entity in which the Government of Venezuela has a 50 percent or greater interest.
Any transaction that evades or avoids, has the purpose of evading or avoiding, causes a violation of or attempts to violate any of the prohibitions set forth in the E.O. is prohibited. In addition, any conspiracy formed to violate any of the prohibitions set forth in the E.O. is prohibited.
For purposes of the E.O., the term “Government of Venezuela” means the government, any political subdivision, agency or instrumentality thereof, including the Central Bank of Venezuela and Petroleos de Venezuela, S.A. (PdVSA), and any person owned or controlled by, or acting on behalf of, the Government of Venezuela.
It is anticipated that the secretary of the Treasury in conjunction with the secretary of State will take such action as promulgating rules and regulations and other actions to implement the E.O. It is anticipated that the order will be published in the Federal Register and that further details will be posted on the webpage of the Office of Foreign Assets Control.