OFAC Expands Venezuela Sanctions Relief to Coal Sector & Updates Secondary Sanctions Guidance

On September 2, 2026, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued General Licenses (GLs) 51D, 54C, and 55A, alongside updated guidance under Frequently Asked Question (FAQ) 1247. These regulatory actions formally integrate the coal sector and state-owned enterprise Carbones del Zulia S.A. (Carbozulia) into the existing Venezuela sanctions framework.

1. Scope of Updated General Licenses (GLs 51D, 54C, and 55A)

• Inclusion of Coal and Carbozulia. OFAC expanded authorized activities beyond gold and minerals to explicitly include coal and Carbones del Zulia S.A. (Carbozulia) alongside CVG Compañía General de Minería de Venezuela C.A. (Minerven).
• Scope of Authorized Transactions (GL 51D). Authorizes established U.S. entities to engage in transactions ordinarily incident to the export, reexport, sale, purchase, storage, or transport of Venezuelan-origin coal or minerals. This includes their processing and refining, provided such activities do not take place in Russia, Iran, North Korea, Cuba, or China.
• Supply of Goods, Technology, and Services (GL 54C). Authorizes the provision from the United States or by a U.S. person of goods, technology, software, or services for coal or minerals operations in Venezuela, including exploration, development, mining, extraction, processing, refining, production, maintenance, refurbishment, or repair.
• Contingent Contracts for Investment (GL 55A). Authorizes transactions related to negotiating and entering into contingent contracts for new investments, operational expansions, or joint ventures in Venezuela's coal or minerals sectors, subject to separate performance authorization from OFAC.

2. Compliance Framework and Operative Restrictions

• Mandatory Dispute Resolution Venues. Any primary contract with the Government of Venezuela, Carbozulia, Minerven, or any Minerven entity must require that dispute resolution proceedings occur exclusively in the United States, the United Kingdom, France, or Singapore.
• Payment Mechanisms. Monetary payments to blocked persons (excluding local taxes, permits, or fees) must be deposited into the Foreign Government Deposit Funds pursuant to Executive Order 14373, or any other account as instructed by OFAC.
• Prohibited Counterparties. Authorizations explicitly exclude any transactions involving persons or entities located in, organized under, or in joint ventures with Russia, Iran, North Korea, Cuba, or China.

3. Non-U.S. Person Secondary Sanctions Protections (FAQ 1247)

• Updated Cross-References. FAQ 1247 formally updates its references to reflect active General Licenses (GLs 46D, 51D, and 52B).
• No Secondary Sanctions Exposure. Confirms that non-U.S. persons do not risk exposure to U.S. secondary sanctions for engaging in transactions that fall within the scope of active General Licenses (GLs 46D, 51D, and 52B) involving PDVSA, Minerven, or Carbozulia, including the importation of Venezuelan coal, oil, petrochemical products, or minerals into third countries.
• Qualifying Conditions & Processing Limits. To maintain secondary sanctions protection, non-U.S. entities must be organized in a third country on or before January 29, 2025, operate under commercially reasonable payment terms, and deposit monetary payments to blocked persons (excluding local taxes, permits, or fees) into Foreign Government Deposit Funds. Transactions must not involve debt swaps, digital currencies or tokens (including the petro), blocked vessels, or prohibited counterparties, and coal or minerals under GL 51D must not be processed or refined in Russia, Iran, North Korea, Cuba, or China.

Disclaimer

This report is prepared for informational purposes only and does not constitute legal advice. The interpretation and application of OFAC sanctions regulations are a complex area of U.S. law. Companies are strongly encouraged to consult qualified U.S. sanctions counsel before taking any action in reliance on these General Licenses. LEC Abogados is a Venezuelan law firm and does not practice U.S. law or provide advice on OFAC regulations. Information is current as of the date of publication.