OFAC delays PdVSA bond authorization tied to CITGO shares

WASHINGTON, August 3, 2026 — Restrictions on transactions involving CITGO shares held as collateral for a Petróleos de Venezuela bond will continue until Sept. 17 after the Treasury Department’s Office of Foreign Assets Control postponed a key authorization.

General License 5Y authorizes, on or after that date, transactions, financing and other dealings involving the PdVSA 2020 8.5 percent bond that would otherwise be barred under a provision of Executive Order 13835. The order restricts U.S. persons from certain transactions involving equity interests sold, transferred, assigned or pledged as collateral by the Venezuelan government.

The authorization is relevant to bondholders seeking access to CITGO shares that secure the debt. OFAC’s revised guidance confirms that transactions related to the sale or transfer of those shares remain prohibited before Sept. 17 unless the agency specifically authorizes them.

The new license replaces and supersedes General License 5X effective Aug. 3. It does not authorize transactions or activities otherwise prohibited by the Venezuela Sanctions Regulations or other OFAC-administered rules.

OFAC also said proposals to restructure or refinance payments owed to holders of the bond may require additional licenses. The agency encouraged parties to seek specific authorization and said it would apply a favorable licensing policy toward such agreements.