The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has eased sanctions rules on Venezuela, expanding the ability of U.S. companies to engage in transactions involving Venezuelan gold and other minerals. The new General License 51D authorizes the export, sale, purchase, storage, transportation, processing, and refining of mineral resources, but does not lift the sanctions regime as a whole. Restrictions remain in effect for transactions involving Russia, Iran, North Korea, Cuba, and certain Chinese entities.
Washington has imposed strict requirements on the movement of funds and reporting. Payments to sanctioned persons must be directed to special accounts designated by the U.S. Treasury. Participating companies are required to disclose information about counterparties, the origin and route of shipments, volumes, prices, and payments to the Venezuelan government in order to ensure full control over every transaction.
Additional licenses 54C and 55A authorize the supply from the United States of equipment, technology, software, and services for the exploration, extraction, and processing of gold and other minerals. They also allow companies to enter into conditional contracts for future investments in the coal and mining sectors. However, direct payments in gold, certain debt-for-equity transactions, and operations involving a number of countries remain prohibited, while the actual launch of investment projects will require separate prior approval from OFAC. Thus, the United States is granting limited access to Venezuela’s resource sector while maintaining strict financial oversight.
Full version: United States Eases Sanctions and Expands Operations with Venezuelan Gold and Minerals