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680. Does the blocking of the Government of Venezuela impact the ability of U.S. persons to transact with the Government of Venezuela, or persons in which the Government of Venezuela owns, directly or indirectly, a 50 percent or greater interest?
Yes. Unless exempt or authorized by OFAC, all property and interests in property of persons meeting the definition of the Government of Venezuela (see section 6(d) of E.O. 13884 of August 5, 2019) that are in, or come within, the United States or the possession or control of a United States person are blocked, pursuant to E.O. 13884. The term “Government of Venezuela,” as defined in E.O. 13884, includes the state and Government of Venezuela, any political subdivision, agency, or instrumentality thereof, including the Central Bank of Venezuela and Petroleos de Venezuela, S.A. (PdVSA), any person owned or controlled, directly or indirectly, by the foregoing, and any...
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1) This is a straightforward application of the 50% rule, which blocks by operation of law entities in which a blocked person (or government) owns, in the aggregate with other blocked persons, a 50% or greater interest. EO 13884 also blocks, by operation of law and without an affirmative determination by OFAC, a variety of other entities meeting the definition of Government of Venezuela (GOV), including entities controlled, but not owned, by the GOV. Note however that not all persons blocked as a result of the application of the 50% rule to the GOV are entities meeting the definition of "Government of Venezuela." Unlike other sanctions programs involving blocked governments (e.g. ITSR, SySR and NKSR), entities...