The U.S. Department of the Treasury has authorized certain transactions involving the import of Venezuelan-origin oil and petrochemical products into the United States under a new general license.
According to a statement from the U.S. Treasury Department, the United States has permitted certain activities involving Venezuelan-origin oil. These activities include transactions with the Venezuelan state-owned oil and natural gas company Petróleos de Venezuela related to importing oil into the United States.
The Treasury Department’s general license states:
“The newly issued license authorizes transactions with the Government of Venezuela, Petróleos de Venezuela, or their subsidiaries that are related to the export, re-export, sale, resale, supply, storage, marketing, purchase, delivery, or transportation of Venezuelan-origin oil (including the refining of such oil) or Venezuelan-origin petrochemical products for import into the United States.”
The Treasury Department also noted that any contracts related to such transactions must be governed by U.S. law. In addition, the license prohibits any transactions involving individuals or entities from Russia, Iran, North Korea, or Cuba.
The license also bans any transaction involving an entity established or based in Venezuela or the United States that is directly or indirectly owned or controlled by a person established under the laws of the People’s Republic of China or engaged in a joint venture with such a person.
At the end of January, National Assembly of Venezuela approved a comprehensive reform of the country’s oil legislation. The reform expands the rights of foreign companies, allowing them to independently manage projects, export, and sell oil even when they are only minority partners in the state company Petróleos de Venezuela. Authorities in the country are also reviewing all existing oil and natural gas contracts.