On 24 August 2017, President Trump issued an Executive Order, Imposing Additional Sanctions with Respect to the Situation in Venezuela, in reaction to recent actions and policies of the Government of Venezuela, including human rights abuses, a deepening humanitarian crisis, the establishment of an illegitimate government body, rampant public corruption, and persecution of the political opposition, report Schulte Roth & Zabel.
The new sanctions prohibit US persons from dealing in securities of the Government of Venezuela, including new debt of certain maturities, new equity, and previously issued government bonds, subject to certain exceptions set forth in general licenses issued concurrently by the US Treasury Department’s Office of Foreign Assets Control (OFAC).
Although the sanctions take effect immediately, OFAC has provided a 30-day wind-down period for US firms to exit existing contracts and to engage in certain otherwise prohibited transactions as part of the wind-down.
As explained in this Alert, a detailed report must be filed with OFAC within 10 days of engaging in such a transaction. US investors and US financial services firms are urged to pay close attention to the new prohibitions.
Click here to read the full report from Schulte Roth & Zabel.