“Most recently, OFAC issued General License 5H on September 10, 2021, which further delays the effectiveness of the authorization [to allow trade of shares connected to the PdVSA bond] until January 21, 2022,” the Treasury Department said on its policy website. “As a result, during such period, transactions related to the sale or transfer of CITGO shares in connection with the PdVSA 2020 8.5 percent bond are prohibited, unless specifically authorized by OFAC.”
The general license, signed by OFAC Director Andrea Gacki, specified that it does not authorize other transactions and activities prohibited under Venezuela Sanctions Regulations even when enacted. It replaced a July 20 license that restricted trade of the bonds until October 21, 2021.
The decision protects Citgo, a US-based oil and gas company majority-owned by PdVSA. So long as the restrictions on bond trading with PdVSA are in place, Citgo is safe from bondholders taking possession of the company’s shares.