Rule2023-00515
Publication of Venezuela Sanctions Regulations Web General Licenses 8K and 41
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 13, 2023
Issuing agencies
Treasury DepartmentForeign Assets Control Office
Abstract
The Department of the Treasury's Office of Foreign Assets Control (OFAC) is publishing two general licenses (GLs) issued pursuant to the Venezuela Sanctions Regulations: GLs 8K and 41, each of which was previously made available on OFAC's website.
Full Text
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<title>Federal Register, Volume 88 Issue 9 (Friday, January 13, 2023)</title>
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[Federal Register Volume 88, Number 9 (Friday, January 13, 2023)]
[Rules and Regulations]
[Pages 2237-2239]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-00515]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 591
Publication of Venezuela Sanctions Regulations Web General
Licenses 8K and 41
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Publication of web general licenses.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is publishing two general licenses (GLs) issued pursuant
to the Venezuela Sanctions Regulations: GLs 8K and 41, each of which
was previously made available on OFAC's website.
DATES: GLs 8K and 41 were issued on November 26, 2022. See
SUPPLEMENTARY
[[Page 2238]]
INFORMATION for additional relevant dates.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs,
202-622-4855; or Assistant Director for Sanctions Compliance &
Evaluation, 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website: <a href="http://www.treas.gov/ofac">www.treas.gov/ofac</a>.
Background
On November 26, 2022, OFAC issued GLs 8K and 41 to authorize
certain transactions otherwise prohibited by the Venezuela Sanctions
Regulations, 31 CFR part 591. Each GL was made available on OFAC's
website (<a href="http://www.treas.gov/ofac">www.treas.gov/ofac</a>) when it was issued. GL 8K was issued on
November 26, 2022 and has an expiration date of May 26, 2023. GL 41 was
issued on November 26, 2022 and automatically renews on the first day
of each month and is valid for a period of six months from the
effective date of GL 41 or the date of any subsequent renewal of GL 41,
whichever is later. The text of these GLs is provided below.
OFFICE OF FOREIGN ASSETS CONTROL
Venezuela Sanctions Regulations
31 CFR Part 591
GENERAL LICENSE NO. 8K
Authorizing Transactions Involving Petr[oacute]leos de Venezuela, S.A.
(PdVSA) Necessary for the Limited Maintenance of Essential Operations
in Venezuela or the Wind Down of Operations in Venezuela for Certain
Entities
(a) Except as provided in paragraphs (c) and (d) of this general
license, all transactions and activities prohibited by Executive Order
(E.O.) 13850 of November 1, 2018, as amended by E.O. 13857 of January
25, 2019, or E.O. 13884 of August 5, 2019, each as incorporated into
the Venezuela Sanctions Regulations, 31 CFR part 591 (the VSR), that
are ordinarily incident and necessary to the limited maintenance of
essential operations, contracts, or other agreements, that: (i) are for
safety or the preservation of assets in Venezuela; (ii) involve PdVSA
or any entity in which PdVSA owns, directly or indirectly, a 50 percent
or greater interest; and (iii) were in effect prior to July 26, 2019,
are authorized through 12:01 a.m. eastern daylight time, May 26, 2023,
for the following entities and their subsidiaries (collectively, the
``Covered Entities''):
<bullet> Halliburton
<bullet> Schlumberger Limited
<bullet> Baker Hughes Holdings LLC
<bullet> Weatherford International, Public Limited Company
Note to paragraph (a): Transactions and activities necessary for
safety or the preservation of assets in Venezuela that are
authorized by paragraph (a) of this general license include:
transactions and activities necessary to ensure the safety of
personnel, or the integrity of operations and assets in Venezuela;
participation in shareholder and board of directors meetings; making
payments on third-party invoices for transactions and activities
authorized by paragraph (a) of this general license, or incurred
prior to April 21, 2020, provided such activity was authorized at
the time it occurred; payment of local taxes and purchase of utility
services in Venezuela; and payment of salaries for employees and
contractors in Venezuela.
(b) Except as provided in paragraph (d) of this general license,
all transactions and activities prohibited by E.O. 13850, as amended,
or E.O. 13884, each as incorporated into the VSR, that are ordinarily
incident and necessary to the wind down of operations, contracts, or
other agreements in Venezuela involving PdVSA or any entity in which
PdVSA owns, directly or indirectly, a 50 percent or greater interest,
and that were in effect prior to July 26, 2019, are authorized through
12:01 a.m. eastern daylight time, May 26, 2023, for the Covered
Entities.
(c) Paragraph (a) of this general license does not authorize:
(1) The drilling, lifting, or processing of, purchase or sale of,
or transport or shipping of any Venezuelan-origin petroleum or
petroleum products;
(2) The provision or receipt of insurance or reinsurance with
respect to the transactions and activities described in paragraph
(c)(1) of this general license;
(3) The design, construction, installation, repair, or improvement
of any wells or other facilities or infrastructure in Venezuela or the
purchasing or provision of any goods or services, except as required
for safety;
(4) Contracting for additional personnel or services, except as
required for safety; or
(5) The payment of any dividend, including in kind, to PdVSA, or
any entity in which PdVSA owns, directly or indirectly, a 50 percent or
greater interest.
(d) This general license does not authorize:
(1) Any transactions or dealings related to the exportation or
reexportation of diluents, directly or indirectly, to Venezuela;
(2) Any loans to, accrual of additional debt by, or subsidization
of PdVSA, or any entity in which PdVSA owns, directly or indirectly, a
50 percent or greater interest, including in kind, prohibited by E.O.
13808 of August 24, 2017, as amended by E.O. 13857, and incorporated
into the VSR; or
(3) Any transactions or activities otherwise prohibited by the VSR,
or any other part of 31 CFR chapter V, or any transactions or
activities with any blocked person other than the blocked persons
identified in paragraphs (a) and (b) of this general license.
(e) Effective November 26, 2022, General License No. 8J, dated May
27, 2022, is replaced and superseded in its entirety by this General
License No. 8K.
Andrea M. Gacki, Director, Office of Foreign Assets Control,
Dated: November 26, 2022.
Venezuela Sanctions Regulations
31 CFR Part 591
GENERAL LICENSE NO. 41
Authorizing Certain Transactions Related to Chevron Corporation's Joint
Ventures in Venezuela
(a) Except as provided in paragraph (b) of this general license,
all transactions ordinarily incident and necessary to the following
activities for or related to the operation and management by Chevron
Corporation or its subsidiaries (``Chevron'') of Chevron's joint
ventures in Venezuela (collectively, the ``Chevron JVs'') involving
Petr[oacute]leos de Venezuela, S.A. (PdVSA) or any entity in which
PdVSA owns, directly or indirectly, a 50 percent or greater interest,
that are prohibited by Executive Order (E.O.) 13850, as amended by E.O.
13857, or E.O. 13884, each as incorporated into the Venezuela Sanctions
Regulations, 31 CFR part 591 (the VSR), are authorized:
(1) Production and lifting of petroleum or petroleum products
produced by the Chevron JVs, and any related maintenance, repair, or
servicing of the Chevron JVs;
(2) Sale to, exportation to, or importation into the United States
of petroleum or petroleum products produced by the Chevron JVs,
provided that the petroleum and petroleum products produced by the
Chevron JVs are first sold to Chevron;
(3) Ensuring the health or safety of personnel or the integrity of
operations or assets of the Chevron JVs in Venezuela; and
(4) Purchase and importation into Venezuela of goods or inputs
related to the activities described in paragraphs (a)(1)-(3) of this
general license,
[[Page 2239]]
including diluents, condensates, petroleum, or natural gas products.
Note 1 to paragraph (a)(4). Except as authorized pursuant to the
Iranian Transactions Sanctions Regulations, 31 CFR part 560, or
otherwise exempt, U.S. persons, wherever located, remain prohibited
from engaging in any transaction or dealing in or related to goods
or services of Iranian origin, including the purchase or import of
Iranian-origin diluents, condensates, petroleum, or natural gas.
(b) This general license does not authorize:
(1) The payment of any taxes or royalties to the Government of
Venezuela;
(2) The payment of any dividends, including a dividend in kind, to
PdVSA, or any entity in which PdVSA owns, directly or indirectly, a 50
percent or greater interest;
(3) The sale of petroleum or petroleum products produced by or
through the Chevron JVs for the exportation to any jurisdiction other
than the United States;
(4) Any transaction involving an entity located in Venezuela that
is owned or controlled by an entity located in the Russian Federation;
(5) Any expansion of the Chevron JVs into new fields in Venezuela
beyond what was in place on January 28, 2019; or
(6) Any transactions otherwise prohibited by the VSR, including
transactions involving any person blocked pursuant to the VSR other
than the blocked persons described in paragraph (a) of this general
license, unless separately authorized.
(c) This authorization automatically renews on the first day of
each month and is valid for a period of six months from the effective
date of General License No. 41 or the date of any subsequent renewal of
General License No. 41, whichever is later.
Note 2 to General License No. 41. Nothing in this general
license relieves any person from compliance with the requirements of
other Federal agencies, including the Department of Commerce's
Bureau of Industry and Security.
Andrea M. Gacki, Director, Office of Foreign Assets Control,
Dated: November 26, 2022.
Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2023-00515 Filed 1-12-23; 8:45 am]
BILLING CODE 4810-AL-P
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</html>Indexed from Federal Register on January 13, 2023.
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