Imposing Additional Sanctions With Respect to the Situation in Venezuela

Aug 29, 2017

Summary

Stops U.S. people and companies from buying new debt or stocks from the Venezuelan government or its oil company to put financial pressure on them.

What problem does this solve?

The Venezuelan government was accused of human rights abuses, corruption, and creating a humanitarian crisis while undermining its democratic institutions. This order puts financial pressure on the government by blocking U.S. persons from providing it with new funding.

What does this order do?

Prohibits new long-term debt for state oil company

Bans U.S. persons from all transactions and financing related to new debt from Petroleos de Venezuela, S.A. (PdVSA) that has a maturity of more than 90 days.

Restricts new debt and equity for Venezuelan government

Forbids U.S. persons from dealing in new debt with a maturity over 30 days or any new equity from the Government of Venezuela.

Bans trading of certain government bonds

Prohibits U.S. persons from dealing in bonds that were issued by the Government of Venezuela before this order was created.

Blocks profit distributions to Venezuelan government

Stops dividend payments or other profit distributions to the Government of Venezuela from any entity it owns or controls.

Prohibits buying securities from the Venezuelan government

Bans U.S. persons from directly or indirectly purchasing securities from the Government of Venezuela, with some exceptions for short-term debt.

Authorizes Treasury to enforce sanctions

Gives the Secretary of the Treasury the power to create rules and take actions needed to carry out the order, in consultation with the Secretary of State.

Who does this affect?

Government of Venezuela
U.S. persons and companies
Petroleos de Venezuela, S.A. (PdVSA)

What is the real world impact?

•

Limits funding for the regime

Cuts off a key source of financing for the Venezuelan government and its state-owned entities, making it harder for them to operate and fund their activities.

•

Pressure for political change

Uses economic sanctions to pressure the Venezuelan government to restore democratic processes and stop human rights abuses.

When does this start?

This order becomes effective at 12:01 a.m. eastern daylight time on August 25, 2017.