LICENSE No. VENEZUELA-2019-358982-1

Date issued: Feb. 14 2019

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TURBOFAC Commentary (436 words)

Notes:

1) PDVSA Services Inc. is/was wholly owned by PdVSA, hence the need for the license (see p. 2 of https://www.justice.gov/opa/press-release/file/1033901/download). This specific license is most notable for the specific licensing policy—not otherwise discernible from OFAC regulations or other statements—as it relates to U.S. entities owned or controlled by PdVSA. It is rare that OFAC allows the unblocking of accounts (compare generally General Note on, and Notable Examples of, Specific Licenses Issued Pursuant to Unwritten Licensing Policies). Here, the unblocking license allows for payments of "salaries, expenses, and severance packages to employees and contractors; service providers; and contract obligations".

2) The license implicitly interprets the phrase “ordinarily incident and necessary to the wind down of [] operations,” which appears in many GLs. It is clear that payments related to "salaries, expenses, and severance packages to employees and...