OFAC delays PDVSA bond authorization, removes three entries from SDN list

WASHINGTON, September 16, 2026 — The US Treasury’s OFAC delayed authorization for transactions involving PDVSA’s 2020 8.5% bond until Nov. 5 and removed three individuals and entities from its Specially Designated Nationals list.

WASHINGTON, Sept. 16, 2026 — The US Treasury Department’s Office of Foreign Assets Control has issued Venezuela General License 5Z, further delaying the date on which certain transactions involving Petróleos de Venezuela S.A.’s 2020 8.5% bond may proceed, while separately removing three entries from its Specially Designated Nationals and Blocked Persons List.

General License 5Z authorizes, from Nov. 5, 2026, transactions related to the PDVSA 2020 8.5% bond, including the provision of financing and other dealings that would otherwise be prohibited under Executive Order 13835. The new authorization replaces and supersedes General License 5Y, dated Aug. 3, 2026, effective Sept. 16.

The measure is closely tied to bondholders’ rights over shares in CITGO that serve as collateral for the PDVSA bond. Executive Order 13835 prohibits US persons from engaging in certain transactions involving the sale, transfer, assignment or pledging as collateral of equity interests in entities majority-owned by the Venezuelan government.

OFAC initially issued General License 5 in July 2018 to remove the executive order as an obstacle to bondholders seeking access to the CITGO collateral. However, since General License 5A was issued in October 2019, OFAC has repeatedly postponed the effective date of that authorization. General License 5Z continues that approach by pushing the effective date to Nov. 5.

Until that date, transactions involving the sale or transfer of CITGO shares in connection with the PDVSA 2020 8.5% bond remain prohibited unless specifically authorized by OFAC. The agency also said additional licensing requirements could apply to any agreement to restructure or refinance payments due to bondholders, although OFAC said it would maintain a favorable licensing policy toward such an agreement.

Separately, OFAC removed three entries from the SDN List. The deletions include Hans Peter Bomatter, a Swiss national previously designated under Russia-related authorities and linked to Tamyna AG, and Modulsan Makina Kesici Takim Ve Disli Sanayi Ticaret Limited Sirketi, a Turkish company also previously designated under the Russia sanctions program.

OFAC also removed Mexican national Jose Raul Vega Sanchez, who had been listed under counter-narcotics sanctions authorities. The Sept. 16 notice did not provide reasons for the three removals.

General License 5Z does not authorize transactions or activities otherwise prohibited under the Venezuela Sanctions Regulations or other OFAC-administered sanctions programs.