meta_id 3499946

On September 16, 2026, the US Office of Foreign Assets Control (OFAC) issued Venezuela-related General License 5Z, which authorizes certain transactions related to the Petróleos de Venezuela, S.A. (PdVSA) 2020 8.5 percent bond effective November 5, 2026. This general license replaces and supersedes General License 5Y, issued on August 3, 2026. The authorization permits US persons to engage in transactions related to the sale, transfer, assignment, or pledging of equity interests in entities owned 50 percent or more by the Government of Venezuela in connection with bondholder rights to CITGO shares serving as collateral for the PdVSA bond. OFAC also issued an amended Venezuela-related frequently asked question (FAQ 595), which provides clarification on the scope and conditions of General License 5Z. The FAQ explains that between October 24, 2019 and November 5, 2026, no authorization was in effect licensing transactions against Executive Order 13835 applicable to PdVSA 2020 8.5 percent bond holders, meaning such transactions were prohibited unless specifically authorized by OFAC. The FAQ encourages parties seeking to enforce bondholder rights or pursue restructuring or refinancing agreements to apply for specific licenses, noting OFAC maintains a favorable licensing policy toward such agreements. Concurrently, OFAC updated its Specially Designated Nationals (SDN) list, removing three individuals and entities: Jose Raul Vega Sanchez (Mexico-based individual); Hans Peter Bomatter (Switzerland-based individual with secondary sanctions risk under Executive Order 14024); and Modulsan Makina Kesici Takim ve Disli Sanayi Ticaret Limited Sirketi (Turkey-based entity also carrying secondary sanctions risk under Executive Order 14024). These removals mean US individuals and entities may now engage in transactions with these former designees, subject to other applicable laws and regulations.