Stories
US Adds Methanol to Venezuela Trade Licenses, Revising Sanctions Framework
- •The US Treasury Department's OFAC revised General Licenses 46E, 48D, and 49B to include methanol among petrochemical products covered by certain oil trade and investment authorizations.
- •Methanol has been added across five tariff classifications within the chemical annex of each license, while primary permissions and restrictions remain largely unchanged.
- •General License 46E authorizes established US entities to engage in transactions involving Venezuelan oil or petrochemical products for import into the United States, with reporting requirements for non-US distribution.
- •General License 48D governs goods, software, technology, and services from the US for oil, gas, and petrochemical operations in Venezuela, including electricity grid maintenance, but prohibits new joint ventures.
- •General License 49B regulates preliminary investment activities, allowing negotiations and contingent agreements for prospective oil, gas, petrochemical, and power projects, requiring separate OFAC approval for execution.
Key Questions Answered
The US Treasury Department’s Office of Foreign Assets Control (OFAC) revised three Venezuela sanctions licences—General Licences 46E, 48D, and 49B—to specifically include methanol among the petrochemical products covered for certain oil trade, supplies, and preliminary investment negotiations.
General Licence 46E authorizes an established US entity organized under US law before January 29, 2025, to engage in designated transactions involving Venezuelan oil or petrochemical products destined for import into the United States, covering activities like transportation, sale, storage, and refining.
No, the amendments do not constitute a broad removal of sanctions against Venezuela, nor do they announce any commercial shipments, investments, or pricing benchmarks.
