US eases sanctions on Conviasa and maintains protection over Citgo

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has issued three new general licenses that adjust its sanctions policy toward Venezuela. These licenses permit specific operations for the state-owned airline Conviasa.

Additionally, OFAC extended the indirect protection for Citgo, a subsidiary of Petróleos de Venezuela (PDVSA), until August 4. This extension shields Citgo from potential seizure by creditors of Venezuela or PDVSA. The protection is crucial as Citgo faces threats from other creditors seeking to embargo the company in U.S. courts, stemming from confiscations ordered by Hugo Chávez about 20 years ago.

License 59 specifically allows Conviasa to engage in customs clearance and delivery services. It also permits the sale, supply, installation, inspection, testing, maintenance, repair, replacement, or improvement of aircraft parts, components, equipment, software, and technology. Software updates, technical support, and other services related to aircraft airworthiness are also covered.

However, Conviasa is prohibited from undertaking these operations using personnel or organizations subject to the laws of Russia, Iran, China, North Korea, or Cuba. Another license, 24A, updates previous sanctions to authorize the Venezuelan government to conduct certain operations related to telecommunications and postal services, facilitating communication and mail exchange within, to, and from Venezuela.