OFAC issues Venezuela license for debt restructuring advisory services

WASHINGTON, May 5, 2026 — The U.S. Treasury Department’s Office of Foreign Assets Control issued Venezuela-related General License 58, authorizing transactions ordinarily incident and necessary to provide legal, financial advisory and consulting services to the Government of Venezuela in connection with potential debt restructuring. The authorization also covers services involving Petróleos de Venezuela, S.A., or PdVSA, and entities in which PdVSA owns, directly or indirectly, a 50% or greater interest.

The license says authorized services include assessing, developing or preparing debt restructuring options, proposals and related supporting materials. OFAC said the term Government of Venezuela carries the meaning set out in Executive Order 13884 and includes the state and government, political subdivisions, agencies and instrumentalities, as well as persons owned or controlled by, or acting on behalf of, those bodies.

The authorization does not permit the restructuring, transfer or settlement of Venezuelan debt, including debt of PdVSA and PdVSA entities, or direct negotiations between the government and creditors on such actions. It also bars payment terms that are not commercially reasonable, involve debt swaps or payments in gold, or are denominated in digital currency, digital coin or digital tokens issued by, for or on behalf of the Government of Venezuela, including the petro.

The general license further excludes settlement agreements or enforcement actions that would transfer or affect property blocked under the Venezuela Sanctions Regulations. It also excludes transactions by persons located in Russia, Iran, North Korea, Cuba or China, or entities owned or controlled by, or in a joint venture with, such persons, as well as transactions involving SDNs other than PdVSA and PdVSA entities.