Washington, D.C.: The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License No. 5Y, authorising certain transactions related to Petróleos de Venezuela, S.A. (PDVSA) 2020 8.5 Percent Bond beginning September 17, 2026.
According to the licence issued under the Venezuela Sanctions Regulations (31 CFR Part 591), the authorisation permits financing and other dealings involving the PDVSA 2020 bond that were previously restricted under US sanctions. The new licence replaces General License No. 5X, which was issued on June 18, 2026, and takes effect from August 3, 2026.
The Treasury clarified that the licence does not authorise any transactions or activities that remain prohibited under other provisions of the Venezuela Sanctions Regulations or other applicable US sanctions.
The move is expected to facilitate certain financial transactions linked to the PDVSA 2020 bond once the authorisation comes into force on September 17.
Market observers note that the decision could also have implications for companies and investors with exposure to Venezuela. Indian refiners and investors with business interests or financial ties linked to Venezuelan assets may benefit from easier access to permitted financial dealings involving the PDVSA 2020 bond, subject to compliance with applicable US sanctions and regulatory requirements.
The latest licence reflects a targeted adjustment to the US sanctions framework governing specific financial instruments associated with Venezuela, while broader sanctions remain in place.