On 30 May 2018, the Canadian government sanctioned 14 individuals “responsible for the deterioration of democracy in Venezuela”, pursuant to the Special Economic Measures Act, by amending the Special Economic Measures (Venezuela) Regulations (40 people were originally listed in September 2017). As a result, asset freezes and financial prohibitions now apply to the 14 people (list of names here). Canadian press release here.
In a strongly worded statement issued today, EU Foreign Ministers agreed to impose additional sanctions against targeted individuals in Venezuela. The Foreign Ministers expressed concern about the credibility of the re-election of President Maduro on 20 May 2018 and promised that “the EU will act swiftly, according to established procedures, with the aim of imposing additional targeted and reversible restrictive measures, that do not harm the Venezuelan population, whose plight the EU wishes to alleviate.”
It is expected that the new measures will be adopted on 25 June. They will supplement the earlier EU sanctions against Venezuela described here.
(i) The purchase of any debt owed to the Venezuelan government (including accounts receivable);
(ii) Any debt owed to the Venezuelan government that is pledged as collateral after 21 May 2018 (including accounts receivable); and
(iii) The sale, transfer, assignment, or pledging as collateral by the Venezuelan government of any equity interest in any entity in which the Venezuelan government has a 50% or greater ownership interest.
Last week, OFAC sanctioned (inter alia) a number of current and former officials of the Venezuelan government (previous blog).
Today, OFAC designated Venezuelan national Diosdado Cabello Rondón (First-Vice President of President Maduro’s political party), pursuant to Executive Order 13692, for being a current or former official of the Government of Venezuela. OFAC also designated 3 other individuals – José David Cabello Rondón (Mr Rondón’s brother), Marleny Josefina Contreras Hernández (Mr Rondón’s wife), and Rafael Alfredo Sarria Diaz (Mr Rondón’s “front man”) – for being current or former officials of the Government of Venezuela, or for acting for or on behalf of designated individuals as key figures in Mr Rondón’s “corruption network”. As a result, US travel bans and asset freezing measures apply to all designated individuals.
OFAC also sanctioned 3 Florida-based companies that are owned or controlled by Mr Diaz, namely: SAI Advisors Inc; Noor Plantation Investments LLC; and 11420 Corp (asset freezes imposed). Furthermore, 14 properties in Florida and New York, owned by Mr Diaz directly or through his companies have been blocked. See OFAC Notice and US Treasury press release.
Yesterday, OFAC designated Venezuelan national Pedro Luis Martin Olivares as a significant narcotics trafficker pursuant to the US Kingpin Act. He is a “former Chief of Financial Intelligence for Venezuela’s National Directorate of Intelligence and Prevention Services” (now known as the Bolivarian National Intelligence Service). OFAC also designated Walter Alexander Del Nogal Marquez and Mario Antonio Rodriguez Espinoza for materially assisting/supporting the “international narcotics trafficking activities of [Mr Martin Olivares]”. OFAC further designated 20 companies in Venezuela and Panama that are “owned or controlled by these three individuals” and which are “allegedly [being] used to launder illicit proceeds from both narcotics trafficking and extortion”. As a result, asset freezing measures have been imposed on all of the designated individuals and entities. Links to OFAC Notice and US Treasury press release.
Yesterday, the Swiss Federal Council adopted sanctions against Venezuela in order to align itself with recent EU measures (see previous blogs here and here). As a result, an arms and repressive goods embargo have been adopted, as well as targeted measures (asset freezes and travel restrictions) against 7 Venezuelan ministers/high-ranking officials. Swiss press release here.
US President Trump has issued a new Executive Order, which takes additional steps to address the situation in Venezuela. In particular, it prohibits US persons from transacting/dealing with “any digital currency, digital coin, or digital token, that was issued by, for, or on behalf of the Government of Venezuela on or after January 9, 2018”. The “Government of Venezuela” is stated as including the Central Bank of Venezuela, as well as the state-owned oil and natural gas company, Petroleos de Venezuela, S.A. (PdVSA).
Acting concurrently, OFAC has released new FAQs related to this Executive Order (which confirms that both the ‘petro’ and the ‘petro-gold’ fall within the Executive Order), as well as a set of new Digital Currency-related FAQs. Furthermore, OFAC has designated 4 current or former Venezuelan government officials pursuant to Executive Order 13692 (asset freezes imposed), namely: Willian Antonio Contreras (‘Vice Minister of Internal Commerce’), Nelson Reinaldo Lepaje Salazar (‘Head of the Office of the National Treasury’), Americo Alex Mata Garcia (‘Alternate Director on the Board of Directors of the National Bank of Housing and Habitat’), and Carlos Alberto Rotondaro Cova (‘Former President of the Board of Directors of the Venezuelan Institute of Social Security’). See OFAC Notice here, and US Treasury press release here.
Venezuela’s state-owned oil and natural gas company Petróleos de Venezuela, S.A (PDVSA) has replaced its Vice President of Finance, Simon Zerpa Delgado, reportedly over concerns that US sanctions on him had led to certain oil exports to the US being blocked. Mr Zerpa Delgado was sanctioned by OFAC on 26 July 2017, pursuant to Executive Order 13692, for his involvement in “Venezuelan Government corruption” (links to OFAC Notice and Treasury press release).