OFAC delays PdVSA 2020 bond authorization in new Venezuela license

WASHINGTON, May 4, 2026 — The U.S. Treasury’s Office of Foreign Assets Control issued Venezuela-related General License 5W on Monday, replacing General License 5V and further delaying until June 19, 2026, the effectiveness of authorization for certain transactions involving the Petróleos de Venezuela, S.A. 2020 8.5% bond.

The new license authorizes, on or after June 19, 2026, transactions, financing and other dealings in the bond that would otherwise be barred under subsection 1(a)(iii) of Executive Order 13835, as amended and incorporated into the Venezuela Sanctions Regulations. The license does not authorize any activity otherwise prohibited under the Venezuela sanctions rules or other parts of 31 CFR chapter V.

OFAC also amended FAQ 595 to clarify that, between Oct. 24, 2019, and June 19, 2026, there is no authorization in effect covering transactions related to the sale or transfer of CITGO shares pledged as collateral for the PdVSA 2020 bond, unless OFAC specifically authorizes them.

The agency said it would view favorably applications for specific licenses if parties reach a restructuring or refinancing agreement for payments due to bondholders, while noting that additional licensing requirements could apply.