OFAC Authorizes Certain Transactions involving Petróleos de Venezuela Bond

In General License 5E, OFAC authorized certain transactions related to the Petróleos de Venezuela, S.A. ("PdVSA") 2020 8.5 Percent Bond, which otherwise would be prohibited by Executive Order 13835 ("Prohibiting Certain Additional Transactions With Respect to Venezuela"). The authorization does not go into effect until January 19, 2021 - three months after expiration of General License 5D, which General License 5E supersedes.

In a related FAQ, OFAC clarified that until the effective date of General License 5E, unless specifically authorized by OFAC, transactions related to the sale or transfer of CITGO shares serving as collateral for the PdVSA 2020 8.5 Percent Bond are prohibited.