Treasury Authorizes Limited Venezuelan Oil Trade and U.S.-Origin Diluents Under Tight Conditions

Overview

• General License 46, issued January 29, allows U.S.-established companies to lift, sell, transport, store, market, purchase, deliver, and refine Venezuelan‑origin oil if contracts use U.S. law with U.S.-based dispute resolution and payments go to Treasury‑controlled Foreign Government Deposit Funds.
• General License 47, issued February 3, authorizes sales and shipment of U.S.-origin diluents to Venezuela—inputs essential for moving extra‑heavy crude—with required contract terms under U.S. law and new reporting to the State and Energy Departments.
• GL 47 differs from GL 46 by not requiring an established U.S. entity, permitting payment through normal banking channels, and omitting Russia- and China‑specific exclusions, though it still bars dealings tied to Iran, North Korea, Cuba, and blocked vessels or property.
• Both licenses prohibit non‑commercially reasonable terms, debt‑for‑oil swaps, and payments in gold or Venezuelan government digital tokens; GL 46 additionally excludes transactions involving persons in Russia or Cuba and entities owned or controlled by Chinese parties.
• Exports of Venezuelan oil to destinations outside the United States must be reported to OFAC within 10 days and quarterly thereafter under GL 46, and legal analysts say the moves mark an initial sanctions relaxation with further licensing possible but not yet issued.