Case No. VENEZUELA-EO13850-2018-358633-1

Date issued: Oct. 08 2021

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TURBOFAC Commentary (301 words)

Notes:

1) Read in conjunction with Case No. VENEZUELA-2018-358633-1, and the associated license at License No. VENEZUELA-EO13850-2018-358633-1.

In this cover letter, OFAC “updating the guidance issued to Rothwell on March 12, 2020,” without reversing its prior legal interpretation, in light of “ further review of the information provided by Rothwell”. Specifically, OFAC concludes that “it appears that certain Invoices may constitute ‘new debt’ issued after August 24, 2017 with a maturity of greater than 90 days of PdVSA and may pertain to goods or services provided to PdVSA…” Due to the fact that the contract may have “pertain[ed] to goods or services provided to PdVSA”, neither Venezuela GL 2 nor Venezuela GL 7 would apply at all, and the old debt vs. “new debt” distinction would, where “new debt” of PDVSA is...