OFAC delays effectiveness of Venezuela bond license, keeping CITGO collateral transactions blocked

WASHINGTON, March 19, 2026 - The U.S. Treasury Department’s Office of Foreign Assets Control issued Venezuela-related General License 5V and amended FAQ 595, continuing its long-running delay on when certain transactions involving the Petróleos de Venezuela, S.A. 2020 8.5 percent bond may proceed.

Under GL 5V, transactions related to, financing for, and other dealings in the PdVSA 2020 8.5 percent bond that would otherwise be barred under subsection 1(a)(iii) of Executive Order 13835 are authorized only on or after May 5, 2026. The license also states that it does not permit any activity otherwise prohibited under the Venezuela Sanctions Regulations or other OFAC rules.

The measure replaces and supersedes General License 5U, dated Feb. 2, 2026, effective March 19, 2026. OFAC’s announcement also says FAQ 595 has been amended alongside the new license.

FAQ 595 makes clear that between Oct. 24, 2019, and May 5, 2026, there is no authorization in effect covering transactions against subsection 1(a)(iii) for holders of the PdVSA 2020 8.5 percent bond. As a result, transactions related to the sale or transfer of CITGO shares tied to that bond remain prohibited unless specifically authorized by OFAC.

OFAC added that if parties reach a restructuring or refinancing agreement involving payments due to bondholders, additional licensing requirements may apply, and the agency said it would have a favorable licensing policy toward such an agreement.