Venezuela Sanctions Update – withdrawal of sanctions relaxation measures under OFAC General License 44

On 17 April 2024, the US took action to withdraw General License 44 and replace it with a wind-down license General License 44A. From 17 April 2024, the authorisations that had been provided under GL 44 to transact in Venezuela’s oil and gas sectors including with PdVSA have been withdrawn. In order to enable parties to deal with the loss of GL 44, OFAC has issued GL 44A which permits performance of wind-down transactions through to 31 May 2024. GL 44A does not authorise entering into new commitments.

General License 44 had been issued on the understanding that the Venezuelan government would take active steps towards holding free and fair elections during 2024. The latest action by the US reflects its view that President Maduro has not complied with the terms upon which the US had been prepared to allow the relaxation of sanctions.