OFAC imposes blocking sanctions on PdVSA

Susannah Cogman (+44 20 7466 2580, susannah.cogman@hsf.com) and Daniel Hudson (+44 20 7466 2470, daniel.hudson@hsf.com) are partners, Jonathan Cross (+1 917 542 7824, jonathan.cross@hsf.com) is of Counsel, and Geng Li (+1 917 542 7828, geng.li@hsf.com) and Christopher Milazzo (+1 917 542 7807, Christopher.milazzo@hsf.com) are associates at Herbert Smith Freehills.

On 28 January 2019, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced [1] that Venezuelan state-owned oil producer Petroleos de Venezuela, S.A. (PdVSA) had been named a Specially Designated National (SDN), which followed the White House’s earlier announcement [2] recognizing Venezuelan National Assembly President Juan Guaidó as the Interim President of Venezuela. The sanctions on PdVSA are significant, write Susannah Cogman, Daniel Hudson, Jonathan Cross, Geng Li and Christopher Milazzo of Herbert Smith Freehills, because it has a monopoly in the Venezuelan oil sector and contributes significantly to the country’s foreign trade income.