OFAC Alert – Oil Sector of Venezuela-Related Sanctions

On April 5, 2019, the Secretary of the Treasury Steven T. Mnuchin determined that persons operating in Venezuela’s oil sector and transporting oil to Cuba may be designated by the Office of Foreign Assets Control (“OFAC”) pursuant to Executive Order 13850 issued on November 1, 2018, by President Donald J. Trump. 

Consistent with the Secretary of the Treasury’s determination, OFAC added companies Ballito Bay Shipping INC y Proper In Management INC to its list of Specially Designated Nationals and Blocked Persons (SDN List).  Accordingly, all property or interest in property of these companies within or transiting U.S. jurisdiction has been blocked. Additionally, if they are not authorized by a general or specific license issued by OFAC, U.S. persons are prohibited from engaging in transactions with these companies or with entities in which they have, directly or indirectly, 50% or greater ownership interest.

On the same date, OFAC identified the 34 vessels as blocked property as Petróleos de Venezuela S.A.  had “an interest” in them.